D-Wave Quantum (QBTS) shares soared more than 25% on Tuesday, May 20 after announcing the “general availability” of its most advanced quantum computer to date – the “Advantage2.” 

According to the quantum technology specialist, its latest system offers a “40% increase in energy scale and a 75% reduction in noise.”

Advantage2 is an “engineering marvel” that comes with significant technological advancements, said Alan Baratz, the chief executive of D-Wave, in a press release today. 

Including today’s gain, QBTS shares are up more than 300% versus their year-to-date low.

D-Wave Quantum Stock Is Overvalued

Despite the launch of Advantage2 and the fact that Burnaby-headquartered D-Wave has recently achieved “quantum supremacy” as well, investors should practice caution in buying QBTS shares at current levels. 

Today’s rally has pushed the forward price-sales multiple on D-Wave Quantum stock up to nearly 200x, which is concerning since Nvidia (NVDA), even with its reputation as an AI darling, is going for about 31 times its estimated sales for 2025 at writing. 

This proves that QBTS is an egregiously overvalued quantum computing stock. It’s a high-risk investment particularly given that the U.S. economy could slide into a recession in the second half of 2025. 

Tech Titans Could Steal D-Wave’s Thunder

Investors should remain wary of investing in D-Wave Quantum also because it faces intense rivalry from the likes of IonQ (IONQ) and Rigetti Computing (RGTI). 

Additionally, tech titans, including Microsoft (MSFT) and Google parent Alphabet (GOOGL), are investing billions in quantum computing as well.

With super impressive balance sheets, these giants are infinitely better positioned to grow their dominance In quantum technology, eventually stealing the spotlight from the likes of QBTS. 

Is it Time to Take Profit in QBTS Shares?

Analysts’ forecasts also suggest that investors should consider trimming their exposure to D-Wave Quantum stock following the explosive move on Tuesday.  

While the consensus rating on QBTS shares remain a “Strong Buy,” the mean target of a little over $12 indicates potential downside of more than 25% from current levels.