D-Wave Quantum Inc. (NYSE: QBTS) is one of a handful of quantum computing firms—including rival Rigetti Computing Inc. (NASDAQ: RGTI)—to have dipped further after early-April tariff-related shockwaves sent markets reeling. D-Wave shares rose dramatically in mid-March on good news about the company's technological achievements, but they fell shortly after and remain down about 33% year-to-date (YTD).
But while many firms across sectors began to recover toward the middle of April, QBTS shares failed to do the same. One primary reason for the slide, which has also impacted traditional semiconductor firms like NVIDIA Corp. (NASDAQ: NVDA) and many others, is the escalating trade war between the United States and China, which could lead to higher costs to import materials, export finished products, and pay for licenses to continue business operations.
Despite the near-term hindrances, many investors still sense that a broader upheaval of the technological status quo is on the horizon in the coming years as quantum technology continues to advance. So is the dip in share price of leading firms like D-Wave an opportunity to buy a stock that investors often criticize as being overvalued? Or is this a warning to the industry and a sign that new leaders may need to emerge to move forward?
Ongoing U.S. Tariff Woes
Though President Trump made efforts in mid-April to reduce headwinds for tech firms by instituting a tariff reprieve on certain technology imports, there is also damage to be accounted for from ratcheting tariff tensions with China. The federal government's decision to restrict exports of semiconductors designed for the Chinese market may not directly impact quantum firms like D-Wave just yet. Still, the message is clear: tech firms should not necessarily count on being able to do business throughout the world free of restriction.
Perhaps a bigger issue for quantum computing companies is the Chinese government's attacks in the escalating back-and-forth. The country has banned exports of certain rare earth minerals and magnets to the United States. Because some of these materials are mined exclusively in China, the impact on the supply chains of quantum computing firms relying on these items (as well as automotive, aerospace, and defense companies, among others) is tremendous. Roughly 70% of rare earth elements are mined in China, and 90% are processed there.
Increasing Competition Overseas
The ban on critical exports comes at an especially challenging time for D-Wave and other quantum firms, as a race to develop related technologies is heating up between U.S. and Chinese companies. In April 2025, Chinese researchers announced a breakthrough quantum computer, Origin Wukong, which achieved a critical milestone in advancing AI models.
To be sure, many quantum computing firms remain popular among analysts, who expect that the technology these companies are developing will revolutionize a range of businesses and industries in the coming years. But the barriers to U.S. innovation in the short term could put companies like D-Wave at a disadvantage compared to rivals around the world for the time being.
Time to Buy D-Wave Shares?
[content-module:Forecast|NYSE: QBTS]D-Wave's share dip in 2025 has helped bring its price-to-sales (P/S) ratio down somewhat, although it remains substantially higher than many other tech firms. Investors are likely to see the stock as still overvalued, but if the share price dips further, it could become a more enticing value prospect.
However, analysts that take a longer view of D-Wave's value—keeping in mind that the company is largely pre-revenue, making the usefulness of P/S ratio as a value metric only somewhat useful—still view the firm with a bullish perspective. All six analysts who have reviewed QBTS stock have rated it a Buy, and the company has only rarely surpassed the current consensus price target of $8.42 per share throughout its entire history of public trading.
Investors suspecting that the trade war will eventually calm down may be more inclined to wait for D-Wave to see more favorable market conditions. But those searching for a faster appreciation might be left frustrated as the company continues to navigate multiple challenging headwinds over the short term.
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