D-Wave Quantum Soars 20% on AT&T Expansion

D-Wave Quantum (QBTS) shares surged over 20% on Monday after announcing an expanded partnership with telecom giant AT&T (T). The collaboration now includes using D-Wave's quantum technology for outage detection, network planning, and traffic management.

Early tests showed D-Wave's system reduced a network optimization process from roughly one hour to less than 15 seconds — a 60x speed improvement. AT&T executive Lucus Haugen praised the results, saying the technology "challenges what's currently possible."

This expansion builds on a previous pilot program and signals AT&T's confidence in D-Wave's ability to solve practical, real-world problems. The news highlights a growing trend of quantum computing moving from theory to application.

Benchmark analyst Gary Mobley reiterated a buy rating on D-Wave with a $30 price target, implying over 50% upside from current levels. He noted that D-Wave is delivering "quantum advantage" to users, unlike many competitors focused on theoretical milestones.

This partnership is a major validation for D-Wave's annealing quantum computing approach, which is often overshadowed by gate-based systems from rivals like IBM and Google. By demonstrating a tangible 60x speedup in a critical telecom process, D-Wave shows its technology can deliver immediate value.

For AT&T, the deal could lead to significant operational efficiencies, reducing costs and improving network reliability. This could give AT&T a competitive edge in 5G and future network technologies.

For investors, the news underscores that quantum computing is no longer just a lab experiment. Companies that can solve real problems today — like D-Wave — may see faster adoption and revenue growth. However, the sector remains volatile and early-stage.

Mobley's caution about spreading bets across multiple quantum stocks reflects the inherent risk. While D-Wave leads in practical applications, other players like IonQ and Rigetti also compete for market share.