The New Threat IBM's Quantum Computing Research Poses to D-Wave - MarketBeat

The New Threat IBM's Quantum Computing Research Poses to D-Wave Written by Nathan Reiff | Reviewed by Clare TitusMarch 17, 2026 ShareLink copied to clipboard. AI Image Generated Under the Direction of Clare Titus Key Points IBM's new quantum-focused reference architecture provides a blueprint for how quantum and classical computing systems may be combined to address novel scientific research questions. The company can back up its ventures into quantum computing with record free cash flow nearing $15 billion last year and a number of other solid fundamentals as well. On the other hand, a smaller, pure-play rival like D-Wave Quantum may be at a disadvantage because it first has to achieve profitability while simultaneously having to compete technologically. MarketBeat previews the top five stocks to own by April 1st. In the race to achieve quantum computing supremacy, a pure-play firm like D-Wave Quantum Inc. NYSE: QBTS must watch out for not only competitors of a similar size and scope but also for much larger legacy tech rivals. Alphabet NASDAQ: GOOG, Microsoft NASDAQ: MSFT, and many other big tech players have ventured into the quantum computing space, using their massive R&D budgets and infrastructure to accelerate development. One advantage a smaller company like D-Wave may have is its exclusive focus on quantum, compared to these other firms, which are targeting a wide variety of technologies at once. Still, D-Wave's many technological successes have so far only led to a disappointing performance in 2026. IBM Corp. NYSE: IBM may make it even harder for D-Wave to thrive this year. A longtime participant in the quantum race, IBM has not only recently announced what could be a significant technological breakthrough but also has stability and a strong track record of fundamental success that D-Wave has not yet achieved.Get D-Wave Quantum alerts:Sign Up IBM's Hybrid Architecture Could Open Up Many New Possibilities First, it's worth considering why IBM's work toward quantum computing may have just advanced in a significant way. The company released in March 2025 the first-ever quantum-centric supercomputing reference architecture, an outline of practical ways that quantum systems can integrate with classical computing tools to address challenges unattainable by either approach alone. IBM's model suggests a hybrid approach utilizing both quantum hardware and traditional computing infrastructure like CPUs and GPUs. The goal, it seems, is to be able to accelerate scientific discovery—and research at the Cleveland Clinic, Japan's RIKEN, and elsewhere has already yielded impressive simulations of molecular models and more. This is significant for the quantum computing space broadly because the applicability of the technology has long been a sticking point for many investors. What use is quantum computing, the thinking goes, if it is not yet clear how exactly it can be applied by businesses and researchers across industries? A hybrid architecture such as this one may provide a pathway for users to incorporate quantum tech into their preexisting systems, with many real-world scientific applications already apparent. Why IBM May Be the Latest Threat to D-Wave D-Wave has recently aimed to establish itself as a go-to pure-play quantum firm, spanning both quantum annealing and gate-model approaches rather than pairing a quantum system with a classical one. IBM's development could make it the latest among several major threats to D-Wave.

International Business Machines TodayIBMInternational Business Machines$251.31 -4.80 (-1.87%) As of 03/18/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$214.50▼$324.90Dividend Yield2.67%P/E Ratio22.54Price Target$318.60Add to Watchlist As a legacy tech giant, IBM has a compelling base of fundamentals that could allow it to further accelerate its quantum development. The company reported a record $14.7 billion in free cash flow in 2025, alongside Q4 2025 revenue that climbed by 9% to beat analyst predictions by close to half a billion dollars. Earnings per share (EPS) also came in ahead of expectations, topping Wall Street's estimate by 19 cents. IBM's renewed focus on software has paid off well, particularly given its annual recurring revenue (ARR) of $23.6 billion. IBM may also be particularly appealing to investors heading into the middle of 2026, given the stock's recent decline. Shares are down more than 15% year-to-date as its AI business faces challenges from prominent AI companies like Anthropic and OpenAI. Nonetheless, analysts are optimistic about IBM's growth prospects throughout the year, expecting close to 8% in earnings gains and 30% in potential share price upside. Key distinctions for many investors may be IBM's size and track record, as well as its financial stability. The company is on such firm financial footing compared to a newer quantum player like D-Wave that it has a 30-year record of raising dividends and a healthy dividend yield of 2.73%. While D-Wave and its rivals are struggling to achieve profitability, IBM can fall back on its other strengths if its quantum efforts are not fruitful. IBM vs. D-Wave: Different Quantum Paths, Not a Zero-Sum Choice Investors may ask why there is a need to focus on one or the other of these two companies, and this is a valid question. After all, IBM's hybrid architecture design seems focused on scientific advances, while D-Wave has made headlines for its annealing-focused approach that is suited for optimization problems across disciplines. Neither company seems focused on attempting a true general-purpose quantum system, and the applications of each of these tools are likely to be different to at least some degree. IBM may have a big leg up in terms of its business history, but there may be room for both companies to contribute meaningfully to the rise of quantum computing in the years to come.Should You Invest $1,000 in D-Wave Quantum Right Now?Before you consider D-Wave Quantum, you'll want to hear this.MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and D-Wave Quantum wasn't on the list.While D-Wave Quantum currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.View The Five Stocks Here The Best Nuclear Energy Stocks to BuyNuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.Get This Free Report Like this article? Share it with a colleague. Link copied to clipboard. Companies Mentioned in This ArticleCompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price TargetD-Wave Quantum (QBTS)3.1498 of 5 stars$16.48-5.6%N/AN/AModerate Buy$36.50International Business Machines (IBM)4.9713 of 5 stars$251.31-1.9%2.67%22.54Moderate Buy$318.60Alphabet (GOOG)4.8218 of 5 stars$306.30-1.0%0.27%28.33Buy$345.71Microsoft (MSFT)4.8844 of 5 stars$391.79-1.9%0.93%24.50Moderate Buy$591.95 Compare These Stocks Add These Stocks to My Watchlist News From Our Partners Business Oil Prices Could Push the 2027 Social Security COLA Above 3.5% and Here’s Why Business Top NY Real Estate Brokers Convicted at Sex Trafficking Trial Business AI Safety Researcher Resigns With ‘World Is in Peril’ Warning Business Mortgage Rates Drop Below 6% for the First Time Since 2022 — What Retirees Should Do Now Business Kevin O'Leary wins $2.8M defamation judgment against Ben 'BitBoy' Armstrong Business Gen X Workers Staring Down a ‘Retirement Crisis,’ Apollo Chief Economist Warns Business Boeing Wins More Than $7 Billion in Pentagon Contracts Business Australian Prime Minister Evacuated From Residence After Chinese Bomb Threat Discover morescientificSoftwaresoftware Featured Articles and OffersChevron Hits New Highs Due to Oil's Rally, But Is It Sustainable?By Sam Quirke | March 12, 2026Elon Musk: This Could Turn $100 into $100,000From Brownstone Research (Ad)Dollar Tree Planted the Seeds for Triple-Digit Gains in Q4By Thomas Hughes | March 16, 2026Ollie’s Stock Won’t Stay a Bargain Much LongerBy Thomas Hughes | March 15, 2026269,267 Shares in BigBear.ai Holdings, Inc. $BBAI Bought by Cantor Fitzgerald L. 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