D-Wave and IonQ: Billionaire David Shaw’s Firm Makes a Big Move on These Top Quantum Stocks

Quantum computing stocks made a big splash last year, driven by the promise of what this groundbreaking tech can achieve. It aims to tackle problems that are too complex or time-consuming for traditional computers by using the unique properties of quantum bits (qubits).

This nascent industry is on course for some robust growth. The global quantum computing market was valued at around $1.42 billion in 2024, and is anticipated to grow at a CAGR (compound annual growth rate) of 20.5% from 2025 through 2030. The overall quantum ecosystem is gaining momentum, with more and more startups stepping into the space. These new players are tackling different parts of the quantum puzzle – whether it’s hardware, software, or practical applications.

This obviously opens up investing opportunities, and it’s no wonder that billionaire David Shaw’s $60-plus billion hedge fund, D.E. Shaw, is showing interest in the segment. Shaw, a former Columbia University computer science professor, clearly recognizes the potential here.

During Q1, D.E. Shaw made a big move on two rising names in the quantum computing space – D-Wave (NYSE:QBTS) and IonQ (NYSE:IONQ), loading up on shares of both.

Shaw is not alone in liking these names. According to the TipRanks database, both are rated as Strong Buys by the Wall Street stock analysts. So, let’s take a closer look at these two buzzy stocks to find out why they are currently turning heads.  

D-Wave Quantum

First up, D-Wave Quantum, one of the pioneers in the quantum computing space, known for taking a unique approach with its focus on quantum annealing – a method particularly suited for optimization problems. Unlike many companies developing gate-based quantum systems, D-Wave has carved out its own niche, offering practical quantum solutions for real-world business challenges.

Over the years, D-Wave has worked with companies across various industries to explore how quantum computing can speed up and improve complex decision-making processes. Some of D-Wave’s notable collaborators include Volkswagen, which used its technology to optimize traffic flow in major cities, and Lockheed Martin, one of the earliest adopters of its systems. The company has also partnered with the likes of Mastercard and Deloitte, helping to explore applications ranging from fraud detection to supply chain optimization.

Investors have been excited about the potential here as is evident in the huge share price gains – the stock has climbed 1235% higher over the past year. 26% of those gains came in a single session earlier this week after D-Wave announced the launch of its latest system, Advantage 2, a commercial-grade solution and its most advanced model to date. With Advantage 2, the company is pushing to make quantum computing more practical for businesses, showing that the tech is moving beyond theory and starting to tackle real-world problems.

Mirroring the market’s enthusiasm, D.E. Shaw is also getting behind this name; in Q1, the fund bought 12,578,703 shares – making it the second-biggest institutional holder. These holdings are currently worth over $212 million.

The company also has a fan in Benchmark’s David Williams, an analyst ranked in the top 3% of Wall Street experts. While the revenue haul still remains rather modest – it generated 15 million in 1Q25 – Williams has been impressed with the progress being made at the company.

“QBTS continued to drive progress across all fronts with several notable achievements during the [first] quarter, including the peer reviewed publication of its quantum supremacy results, development of a new quantum-native blockchain architecture, and the completion of its first quantum computing hardware sale,” the 5-star analyst wrote. “While each had been previously disclosed, we think the progress demonstrates the strength of the firm’s technology, accelerating pace of adoption, and improving pipeline of revenue generating opportunities. We are also encouraged by an additional customer application moving to production during the period with several others anticipated to transition later this year, supporting QCaaS revenue growth.”

“Overall,” Williams further added, “we believe this quarter was a validation of the company’s annealing approach, advancing technology roadmap, growing customer interest and commercial adoption momentum.”

Conveying his confidence, Williams puts a Buy rating on the shares backed by a Street-high $14 price target. However, the huge gains have now taken the stock beyond that target. (To watch Williams’ track record, click here)

It’s a similar story amongst Williams’ colleagues; based on Buys only – 6, in total – the stock claims a Strong Buy consensus view. That said, the $13 average target points toward one-year losses of ~23%. It will be interesting to see whether analysts update their targets or downgrade their ratings shortly. (See QBTS stock forecast)

IonQ

From one quantum computing leader to another. IonQ is a U.S.-based quantum computing company that stands out for using trapped-ion technology, a method that offers highly precise and controllable qubits. Founded in 2015 as a spinout from research at the University of Maryland and Duke University, IonQ has positioned itself as a key player in the effort to bring quantum computing into practical use.

Trapped-ion technology is different from other quantum approaches because it uses individual atoms – specifically, ions – as qubits. These ions are held in place using electromagnetic fields in a vacuum and manipulated with lasers. This allows for very high qubit stability, long coherence times, and all-to-all connectivity between qubits – advantages that help make IonQ’s systems especially accurate and versatile.

Recently, IonQ made major strategic moves to expand its capabilities. It completed the acquisition of ID Quantique, a Swiss company specializing in quantum-safe networking, and announced plans to acquire Lightsynq Technologies, a startup focused on photonic interconnects and quantum memory. IonQ also revealed its intention to buy Capella Space to launch the first space-based quantum key distribution (QKD) network. These steps reflect the company’s ambition to lead not just in quantum computing, but in building the foundation of a global quantum communications network.

D.E. Shaw has also been making big moves here. It is now the third-biggest institutional holder, following the purchase of 7,835,475 shares in Q1. Based on the current share price, these are now worth almost $279 million.

For D.A. Davidson analyst Alexander Platt, the reason to get behind this quantum computing player is fairly simple.

“We continue to believe that IonQ is the best positioned quantum company throughout the quantum stack,” Platt said. “IonQ is building what we believe is a leading platform throughout all foundational pillars of quantum: computing, networking, and sensing. With their recent acquisitions and technical developments, IonQ is not only setting themselves up to win longer-term in these areas, but to drive real-world value for their enterprise customers right now.”

Platt rates the shares a Buy, although his $35 price target implies the stock will stay rangebound for the time being. (To watch Platt’s track record, click here)

The Street’s average target is a bit higher than that; at $40, the figure makes room for one-year returns of 12%. All told, the analyst consensus rates the stock a Strong Buy, based on a mix of 4 Buys vs. 1 Hold. (See IONQ stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.