D-Wave’s 22% Surge: What’s Behind the December Rally?

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D-Wave’s 22% Surge: What’s Behind the December Rally?

Written by Nathan Reiff on December 8, 2025 

D-Wave logo overlaying a quantum computing chip.

At a Glance

  • After more than a month of sharp declines, shares of D-Wave Quantum suddenly spiked 22% in the first few days of December.
  • The company announced a new government-focused business unit, sparking speculation about future U.S. defense contracts.
  • High R&D costs and a long path to profitability continue to make D-Wave a speculative investment despite short-term rallies.

D-Wave Quantum Inc. (NYSE: QBTS)asurged more than 22% in early December, adding almost $5 per share in a single week. The move follows a tumultuous year that saw the stock rise tenfold before giving up more than half of those gains during the fall.

This price action underscores D-Wave’s unique positioning in the quantum computing sector: investors are cooling on the quantum field overall, but the hype surrounding these companies is still strong enough for news developments to trigger rallies. The question for investors, though, is whether mini-rallies like the current one are enough to sustain long-term gains.

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Government-Focused Business Unit Announcement Coincides With Recent Spike

The latest jump in share price for D-Wave coincided with its early-December announcement of the formation of a business unit aimed at boosting U.S. government adoption of its technologies.

While quantum firms have so far failed to draw the interest of many business customers, they have had much greater success with major organizations and governments.

In its announcement, D-Wave specifically pointed to potential defense applications of its technology, highlighting its Advantage2 quantum system at Davidson Technologies’ headquarters in Alabama.

Yet crucially, this announcement contained no confirmed new contracts—only strategic repositioning.

Still, investor enthusiasm was clear. The idea that this new unit might convert into government deals—especially given the Trump administration’s stated interestin expanding federal quantum infrastructure—was enough to spark a significant price move.

Gate-Model Project Is Costly, Uncertain

D-Wave’s long-term strategy includes expanding beyond its proprietary quantum annealing technology to offer gate-model quantum computing, the standard pursued by many rivals. This dual-approach could give D-Wave an edge with governments and large enterprises looking for more flexible platforms.

However, R&D costs associated with this expansion are likely to remain significant, despite a growing number of large system deals. Even with sizable top-line growth in recent quarters and fall warrant redemptions to bulk up its already-strong cash reserves, the company still has a long runway before its model will likely yield broader public adoption, let alone a consistent profit.

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Could the Spike Continue, or Is This a Fluke?

Investors will be wondering if D-Wave’s recent upward trend is likely to continue. On one hand, the market appears to be tiring of the quantum industry as a whole, with many specialized firms in the space experiencing shocking declines in the last several weeks. Many companies in the quantum space are still linked in terms of performance—other participants also saw a bump in the first week of December alongside D-Wave—and are not yet fully differentiated from one another.

On the other hand, though, D-Wave’s recent rally—in spite of the company not announcing any fundamental changes to its order log or list of contracts—shows that even while investors cool on this trendy name, the enthusiasm can return in a flash. Investors may not automatically head to buy D-Wave shares on name alone at this point, but even the hint of a shift in a favorable direction (in this case, toward catering to a receptive U.S. government) can yield a short-term spike.

Traders comfortable with this level of volatility on an investment that remains fairly speculative for the time being might find opportunities to win nice returns in D-Wave’s ups and downs. And if D-Wave is too turbulent, consider an investment in the broader quantum space through an exchange-traded fund (ETF) for some added diversification.

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I was born on 6 August 1956 in San Francisco, California to Janet and (the late) Richard Hovis. I grew up in Santa Monica, California where I attended elementary, junior high school, and high school (graduating in 1974), in addition to involvement in sports and recreation (Little League +, the Boy’s Club ++). Further, it was in elementary school – St. Augustine’s By-the -Sea Parish School that I found, and made the choice to truly journey with God. I attended Arizona State University from 1974 to 1977 – seeking to become an architect, however, I was not accepted, and, as such, I graduated with a Liberal Arts degree. Upon graduation from Arizona State University, I attended Cal Poly San Luis Obispo and studied City and Regional Planning at the Master’s level. I successfully completed one (1) year in a two (2) year program – I did not complete the Master’s degree in City and Regional Planning – due to personal reasons. I returned to Santa Monica where I started (October 1979) my career as graphic designer with Exxon Company, USA. I spent five years with Exxon Company, USA. While working with Exxon Company, USA I was accepted into architectural school – Sci-Arc in Southern California, however, I did not attend preferring to stay with Exxon.. In 1982 I married Laura Flosi and in April 1983 we had our one and only child – Lauren Alain Hovis – a gift from God. We moved to Phoenix, Arizona in 1984 from Los Angeles, where I went to work as a graphic designer with Kitchell CEM (from 1985 -1987). From 1987 – 1995 I was an independent contractor, and a registered representative in mortgage finance, financial management, graphic design, and drafting. Further, I attended the University of Phoenix and successfully obtained a Master’s in Business Administration (MBA) in 1982. I was also a member of the Scottsdale Jaycees, where I became very involved in community events and projects. In 1994, I accepted a cartography position with the Defense Mapping Agency in Reston, Virginia. As such, I relocated from Phoenix to Reston. In 1998, I was accepted and worked as a Visual Information Officer with the Central Intelligence Agency. In 2002, I worked as a Support Officer until my retirement (due to a need for shoulder surgery) in September 2018. Away from my Federal Government service, I have been involved in various organizations and activities in Northern Virginia. In November of 2011, I married Rebecca Ouellette in Santa Monica, California. I reside in San Tan Valley, AZ with my two hamster - Jess and Timothy, our fish, our lizard - RJ Lizard., and our cats - Pearl and Grey. As to hobbies, I enjoy playing sports, attending sporting events, mentoring individuals from financial management to hamsters, building models, photography, travel, multimedia design, managing partner for RJ Hamster, and jazz – smooth jazz to a samba or a bossa nova. Love and God Bless, Peter – aka RJ Hamster Jo hi

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