D-Wave Quantum (QBTS 15.66%) stock is soaring higher in Wednesday's trading thanks to bullish analyst coverage. The quantum-computing company's share price closed out the daily session up 15.6%.
D-Wave's valuation is seeing another big jump today thanks to new coverage from analysts at B. Riley and Canaccord. The quantum specialist's share price is now up more than 140% year to date.
Canaccord published a report early this morning initiating coverage on D-Wave Quantum with a buy rating and a one-year price target of $20 per share. Soon after, B. Riley also published new coverage on the stock -- maintaining a buy rating and raising its one-year price target from $20 per share to $22 per share.
Image source: Getty Images.
Is D-Wave Quantum stock a buy right now?
Quantum computing stocks have been incredibly hot in recent months. Some significant technology breakthroughs and bullish comments from tech luminaries including Nvidia CEO Jensen Huang have helped power huge rallies for many players in the space. Expectations that the Federal Reserve will cut interest rates multiple times this year and create a more favorable backdrop for growth stocks have also contributed to valuation rallies in the category.
Advances in quantum computing technologies could power huge leaps forward in artificial intelligence (AI) and other high-value tech categories, and D-Wave seems to be establishing itself as an early front-runner in the space. On the other hand, quantum computing is still a nascent technology -- and charting how progression and competitive dynamics in the space will play out involves a very high degree of guesswork. Risk-tolerant investors seeking exposure to the quantum trend could find D-Wave Quantum stock to be a worthwhile portfolio addition, but the potential for downside volatility in the near term has also increased on the heels of the recent rally.
