D-Wave stock is soaring and it's not entirely about AT&T partnership

D-Wave Quantum QBTS stock is ripping higher on Monday morning after the company revealed an expanded agreement with telecom giant AT&T (T).

The quantum computing firm now looks headed to challenge its 20-day moving average (MA) – with a decisive break above $19.66 expected to boost upward momentum in the near-term.

Despite today’s rally, however, D-Wave Quantum stock remains down over 35% year-to-date.

Significance of AT&T partnership for D-Wave stock

AT&T has agreed to expand its use of D-Wave’s annealing quantum technology across its network operations, which it says compressed a critical network optimization workload from about 1 hour down to under 15 seconds.

The telecom firm is now embedding the quantum computing tech directly into the tools powering its agentic artificial intelligence (AI) solutions.

In its press release, AT&T also signaled it is evaluating D-Wave’s upcoming “gate-model quantum systems” for future applications in quantum security and communications.

For QBTS shares, the expanded AT&T partnership is positive because it validates the company’s technology in a real-world, enterprise-scale deployment rather than a limited pilot.

The broader adoption creates opportunities for recurring commercial sales, strengthens D-Wave’s credibility with other large customers, and hints at future growth as AT&T explores the firm’s next-generation gate-model quantum systems.

Why else are QBTS shares soaring today?

Investors should note, however, that D-Wave shares’ entire rally this morning isn’t about the AT&T news.

Part of it is because the quantum computing company shifted its stock listing today to Nasdaq – voluntarily leaving the NYSE.

CEO Dr. Alan Baratz and the leadership team rang the Opening Bell this morning to celebrate the transition, giving the stock heightened visibility among tech-focused institutional investors.

This improves QBTS’s profile among investors focused on high-growth, innovation-driven stocks – potentially attracting additional institutional and retail investors that mostly track Nasdaq-listed firms only.

Benchmark issues a bullish note on D-Wave Quantum

Finally, QBTS shares are soaring also because Benchmark analysts initiated coverage with a “Buy” rating and a $30 price target, indicating potential upside of more than 65% from here.

The firm’s constructive thesis hinges on D-Wave’s unique position as a commercial dual-platform leader.

Unlike pure-play rivals that remain years away from monetization, QBTS’s quantum annealing technology is already generating real-world revenue by solving complex enterprise optimization problems today – ranging from logistics routing to AI workforce scheduling.

Moreover, Benchmark highlighted D-Wave’s strategic execution on its fault-tolerant, gate-model roadmap, which expands its addressable market to broader scientific and universal compute applications.

Coupled with expanding corporate integrations – such as AT&T’s network optimization push – and growing government funding initiatives, Benchmark views D-Wave as a prime vehicle for investors seeking near-term enterprise traction alongside long-term upside in quantum supremacy.

Note that the consensus rating on QBTS also currently sits at Strong Buy.