D-Wave Quantum (QBTS) stock plunged yesterday along with other notable quantum stocks such as IonQ (IONQ), Rigetti (RGTI), and QCI (QUBT), after reports that the Canadian quantum company, Xanadu, is planning an IPO at the dawn of 2026. Nevertheless, the company has switched on its new Advantage2 quantum computer at Davidson Technologies’ base in Huntsville, Alabama. The move marks the company’s second U.S. system and the first in Alabama. It is part of a long plan with Davidson Technologies to help U.S. agencies use quantum tools for defense and research tasks.
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The news arrives two days ahead of the company’s third-quarter earnings report, scheduled for release on Thursday.
The new system is ready for customer use through D-Wave’s Leap cloud service. Both companies say it can help address complex national security issues such as radar tracking, resource planning, and logistics. In time, the system may also support classified work. D-Wave and Davidson are testing ways to apply quantum computing in materials science, artificial intelligence, and other key defense areas.
Meanwhile, QBTS shares dropped yesterday by over 10%, to close at $33.09. However, the stock is still up 293% year-to-date.
Focus on Government and Local Support
The partnership aims to expand quantum adoption within U.S. defense programs. According to D-Wave Chief Executive Officer Alan Baratz, the system will help government teams make faster decisions and use data more effectively. Davidson Technologies President Dale Moore added that the company wants to equip national security agencies with tools that can handle complex tasks and improve readiness.
Local leaders also backed the launch. Huntsville Mayor Tommy Battle said the project builds on the region’s record in research and technology. Senator Tommy Tuberville noted that quantum tools could help the military in space and logistics planning, while Representative Dale Strong said the collaboration will support military efforts for years to come.
What It Means for D-Wave and Investors
The Advantage2 system is part of D-Wave’s plan to make quantum computing practical and accessible. Unlike rivals focused only on experimental models, D-Wave’s annealing design aims to solve optimization problems that are difficult for classical computers. The company says its systems can be used both on-site and through its real-time cloud platform, which has processed more than 200 million problems so far.
For investors, this expansion signals D-Wave’s growing link with U.S. government clients and a stronger foothold in national defense technology. The collaboration with Davidson may also help position the company for future contracts and research projects. As the use of quantum computing spreads, D-Wave’s early move into real-world government work could support its long-term business outlook.
Is QBTS a Good Stock to Buy?
D-Wave continues to enjoy the Street’s analysts’ backing with a Strong Buy consensus rating. The average QBTS stock price target stands at $27, implying an 18.40% downside from the current price.
