D-Wave Quantum initiated with a Buy at Needham

Needham initiated coverage of D-Wave Quantum with a Buy rating and $2.50 price target. D-Wave is a pure-play quantum computing company that targets commercial applications with a unique quantum annealing technology, the analyst tells investors in a research note. The firm says that unlike peers, D-Wave generated 70% of its 2023 revenue from commercial customers by applying its quantum annealing systems to real-world optimization problems. It believes quantum computing holds “immense promise and may represent the next generational shift in the computing industry.”