D-Wave Quantum: Government Backing Meets a 20% Weekly Drop as the Tech Sector Reels

D-Wave Quantum lost 19.7% in a week after strong May jobs data killed rate-cut hopes, overshadowing a $100M CHIPS Act funding deal and leaving shares teetering on their 200-day moving average.

The US jobs report for May landed like a sledgehammer on growth stocks. With 172,000 new positions added — nearly double the 80,000 economists had forecast — the probability of near-term rate cuts evaporated. The Nasdaq 100 suffered its worst single-day decline since April 2025, sliding 4.77%. For D-Wave Quantum, a name that carries annualised 30-day volatility of 138%, the damage was amplified: the stock tumbled 13% on Friday alone and closed the week down 19.7%.

That weekly rout erased what should have been a celebratory period. The quantum computing company had secured a non-binding Letter of Intent for up to $100 million in funding under the CHIPS and Science Act, part of a $2 billion government push that also benefits Rigetti, Infleqtion, Quantinuum, Atom Computing, Diraq, and PsiQuantum. In exchange, the Department of Commerce will take a direct equity stake in D-Wave via newly issued shares. The aim is to accelerate development of both annealing and gate-model systems.

Yet the macro headwind proved too strong. The Philadelphia Semiconductor Index lost 10% in a single session as heavyweights like NVIDIA and Broadcom slid, dragging the entire tech complex lower. For a high-beta name like D-Wave, the correlation was punishing.

The selloff comes at a fragile moment for the company’s fundamentals. First-quarter revenue fell to $2.9 million, an 81% drop from the prior year. Bookings, however, climbed to $33.4 million, buoyed by a system sale to Florida Atlantic University. That backlog provides a cushion, but the revenue hole leaves D-Wave trading at roughly $8.77 billion in market capitalisation on a quarterly top line that many small-caps would consider negligible.

Adding to the competitive pressure is the Nasdaq debut of Quantinuum, the Honeywell-backed quantum player, in early June. The IPO priced at $60 per share, raising $1.68 billion, and quickly traded up to $68. CEO Rajeeb Hazra used the listing to position Quantinuum as proof that quantum computing is already commercially viable. That narrative only sharpens the contrast for D-Wave, which has yet to convince the market that its own revenue dip is temporary.

Technicians have their eyes on one level. D-Wave closed the week at €20.71, precisely on its 200-day moving average of €20.70. That line often marks the dividing line between a long-term uptrend and a bear phase. The relative strength index of 48.5 suggests the stock is neither overbought nor oversold, leaving room for further downside before counter-trend signals appear. The next major support is the 52-week low of €11.12 — roughly 46% below Friday’s close.

Analyst consensus still points to a price target of €31.62, implying upside of about 52%. But given the 81% revenue contraction and a market that is repricing risk aggressively, that optimism will need to be backed by hard data in coming quarters. The government funding provides a long-term strategic anchor, but it does little to address the immediate question: can D-Wave show a credible growth trajectory while the Federal Reserve keeps rates elevated?

For now, the stock sits at a technical inflection point, caught between a state-backed tailwind and a macro environment that is punishing any company without a clear path to profitability. The next earnings report will determine which force prevails.