5 Reasons Why Rosenblatt Securities’ Bullish D-Wave Quantum Coverage Is Shaking Up The $1 Trillion Computing Market
The quantum computing sector is no stranger to hype, but when a major Wall Street firm throws its weight behind a company, the market takes notice. As of today, December 21, 2025, the deep-dive coverage of D-Wave Quantum Inc. (NYSE: QBTS) by Rosenblatt Securities continues to serve as a pivotal endorsement, anchoring the company's valuation in the volatile quantum space. Initiated with a highly bullish 'Buy' rating, the analysis positions D-Wave as a differentiated and compelling investment, thanks to its unique technological path and immediate commercial viability.
This comprehensive coverage from Rosenblatt Securities, spearheaded by analyst Kevin Garrigan, has provided a crucial framework for evaluating D-Wave's potential, moving the conversation beyond purely theoretical quantum physics to tangible commercial success and revenue generation. The firm's confidence is rooted in D-Wave's strategic focus on quantum annealing, a technology already delivering real-world value for complex optimization problems, a critical differentiator in the race toward quantum supremacy.
Rosenblatt Securities’ Deep-Dive on D-Wave Quantum (QBTS)
The initiation of coverage on D-Wave Quantum (QBTS) by Rosenblatt Securities was a significant event for the quantum computing investment community. Analyst Kevin Garrigan and the firm established a bullish outlook, often setting price targets that reflected a substantial upside potential for the stock.
The core of the Rosenblatt thesis centers on D-Wave's first-mover advantage in commercial quantum computing. While many competitors are still focused on building universal, gate-based quantum computers, D-Wave has already deployed commercially available systems designed for specialized tasks.
This pragmatic approach allows customers to solve large-scale optimization challenges today, generating revenue and building a robust user ecosystem through the Leap™ quantum cloud service.
The Analyst’s Profile: Kevin Garrigan and Rosenblatt Securities
Rosenblatt Securities has emerged as a key voice in the technology and semiconductor sectors, and its decision to initiate dual coverage on both D-Wave Quantum and rival IonQ (IONQ) signaled a serious commitment to analyzing the burgeoning quantum market.
Kevin Garrigan, the lead analyst on the coverage, has been instrumental in articulating the investment case. His analysis often highlights the distinct value propositions of different quantum architectures, providing investors with a nuanced view of the sector's complex landscape.
This level of specialized, in-depth coverage is vital for a nascent industry like quantum computing, where traditional valuation metrics often fall short. Rosenblatt’s coverage acts as a crucial bridge between highly technical scientific advancements and the financial markets.
1. The Quantum Annealing Advantage: A Commercial Head Start
The primary reason for Rosenblatt’s bullish stance is D-Wave’s technological differentiation: quantum annealing. Unlike the gate-based quantum computers—which aim for universal computation but are still years away from widespread production use—quantum annealing is purpose-built for solving complex optimization problems.
This focus gives D-Wave a significant commercial head start. Quantum annealing systems are designed to find the lowest energy state in a complex system, which directly translates to solving real-world challenges in logistics, financial services, drug discovery, and artificial intelligence (AI).
The applications are immediate and tangible, including optimizing airline scheduling, managing supply chain bottlenecks, and improving machine learning model training. This immediate utility contrasts sharply with the long-term, high-risk promise of universal quantum computers.
D-Wave’s Advantage™ and the newest Advantage2™ quantum computer, which boasts thousands of superconducting qubits, are available for production use today, a compelling factor in the analyst's valuation model.
2. Strong Q3 2025 Financial Results Signal Momentum
Rosenblatt’s continued confidence is validated by D-Wave’s recent financial performance. The company’s Third Quarter 2025 results, reported shortly before the analyst maintained the Buy rating in November 2025, showed significant momentum.
Revenue for Q3 2025 doubled to $3.7 million, a 100% increase compared to the same period in the previous year, and surpassed analyst forecasts.
Key metrics like Closed Bookings also showed robust growth, reaching $2.4 million. While the company still reports a wider loss—typical for a high-growth, R&D-intensive technology company—the revenue beat and strong bookings growth indicate accelerating customer adoption and commercial traction.
This financial data provides a solid, data-driven foundation for the Rosenblatt 'Buy' recommendation, suggesting that D-Wave is successfully monetizing its quantum annealing technology through its hybrid quantum solutions and cloud platform.
3. A Differentiated Path in the Quantum Computing Race
The quantum computing ecosystem is often simplified into a two-horse race, but Rosenblatt's coverage emphasizes D-Wave's unique lane. The firm acknowledges that while gate-based systems like those from IonQ or IBM are pursuing the goal of a fault-tolerant, universal quantum computer, D-Wave is focused on delivering practical, application-specific value now.
This dual-track approach—often referred to as D-Wave’s dual-pronged strategy—is a key investment thesis. It allows D-Wave to capture market share in optimization services while the rest of the industry matures.
The development of the Advantage2 system, with its increased qubit count and improved connectivity, directly addresses the need for more powerful tools to solve increasingly complex optimization problems faced by enterprise customers.
The company’s focus on hybrid quantum solutions, which combine classical computing resources with quantum processing units (QPUs), makes the technology accessible and scalable for a broader commercial user base today.
4. Expanding Commercial Applications and Customer Base
The commercial availability and practical use cases of D-Wave's technology are central to the Rosenblatt analysis. The analyst coverage often cites the growing list of customers and applications as evidence of the company’s market leadership.
D-Wave's technology is being utilized across various industries, including:
- Logistics: Optimizing delivery routes and fleet management.
- Manufacturing: Improving production scheduling and material cutting.
- Financial Services: Portfolio optimization and risk modeling.
- Life Sciences: Protein folding and drug candidate screening.
The fact that D-Wave is one of the only quantum hardware providers offering a commercial-scale system in active, production use gives it a significant advantage in attracting and retaining enterprise customers. This real-world deployment builds crucial intellectual property and commercial expertise that competitors currently lack.
5. High Price Target and Long-Term Market Potential
The initial and subsequent price targets set by Rosenblatt Securities, which in some instances reached as high as $40 and saw a 33.33% raise in others, underscore the firm’s belief in the long-term potential of QBTS stock.
This bullish forecast is based on the expectation that the quantum computing market, currently in its infancy, will eventually grow into a multi-trillion-dollar industry. D-Wave's early lead in commercialization positions it to capture a substantial share of this future market, particularly in the domain of optimization.
The firm views D-Wave as a "high-risk, high-reward bet" but one with a clear path to generating revenue today while simultaneously advancing its core technology. The continued maintenance of the 'Buy' rating, most recently confirmed in November 2025, signals that Rosenblatt believes D-Wave is executing its strategy effectively and remains a top pick for investors seeking exposure to the transformative power of quantum computing.
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