D-Wave Quantum (QBTS 1.37%) stock posted massive gains in Friday's trading. The quantum computing company's share price surged more than 20% in a day of trading that saw the S&P 500 gain 2% and and the Nasdaq Composite surge 2.2% higher.
After some big sell-offs earlier in the week, D-Wave and other growth stocks came roaring back in today's trading. The company's rally was aided in part by Amazon's announcement that it plans to spend $200 billion this year building out its artificial intelligence (AI) data-center infrastructure and pursuing other growth projects.
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Amazon's huge capital expenditures forecast helped restore confidence in the AI trade -- and the bullish momentum extended to D-Wave and other quantum-computing stocks. Despite the rally today, D-Wave stock is still down 53.5% from its lifetime high.
Is D-Wave stock a buy right now?
D-Wave appears to have solid early positioning in the quantum-computing market. The company's annealing approach to quantum tech is yielding commercialization opportunities, and its bets on gate-model tech could wind up powering even bigger growth over the long term.
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On the other hand, D-Wave's outlook is highly speculative -- and the potential for big upside with the stock comes with a lot of risk. For long-term investors, D-Wave stock may be looking at a binary outcome. While shares could go on to deliver multibagger returns, there is also a big risk that shareholders could lose most or all of their investment.
