The latest move in D-Wave Quantum (QBTS) comes after the U.S. government said it plans to invest up to US$100 million under the CHIPS and Science Act to support its quantum computing technologies.

The proposed CHIPS Act funding arrives after a volatile stretch, with the stock down about 15.6% over the past week and 17.4% year to date, while still supported by a 90 day share price return of 30.4% and a very large 3 year total shareholder return. This points to strong but choppy momentum tied to news on funding, product roadmaps and board changes.

If this kind of quantum-backed move has your attention, it could be a good time to broaden your research and check out 29 quantum computing stocks

With D-Wave Quantum still well below the average analyst price target and yet carrying a very large 3 year total shareholder return, the key question is whether recent weakness signals an undervalued quantum play or a market already pricing in years of future growth.

Most Popular Narrative: 42.8% Undervalued

According to the most followed narrative, D-Wave Quantum's fair value of $40.65 sits well above the last close at $23.25, which frames the stock as materially discounted in that framework.

The most critical underlying factor in D-Wave’s 2026 narrative is its unprecedented liquidity. Following the financial restructuring associated with the QCi merger, D-Wave enters 2026 with its largest cash-on-hand position in company history.

The $884 Million Liquidity Milestone: As of February 2026, D-Wave reported over $884 million in cash and marketable securities. This represents a massive increase compared to its 2024 levels, providing the "functional flexibility" that its smaller, capital-constrained competitors lack.

This narrative leans heavily on a large liquidity pool, rapid top line expansion and an ambitious margin profile. Want to see how those pieces combine into that fair value call.

Result: Fair Value of $40.65 (UNDERVALUED)

However, this hinges on continued access to funding and customer adoption, so any pullback in CHIPS support or weaker bookings could quickly challenge that optimistic setup.

Another Take: Price Versus Book Value

That user narrative paints D-Wave Quantum as 42.8% undervalued, but the simple P/B check tells a very different story. At 7.7x book value versus 2.9x for the wider US software sector and 5.9x for peers, the stock trades at a clear premium that could matter if expectations reset.

Investors weighing those contrasting signals may want to stress test what would need to go right, and for how long, for that richer multiple to feel comfortable.

Next Steps

With such a split between optimism and caution, it makes sense to move quickly, review the numbers for yourself, and weigh both sides through 1 key reward and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.