D-Wave Quantum Inc. (QBTS) shares soared more than 11% in Monday's pre-market trading after announcing an expanded partnership with AT&T Inc. (T) to deploy quantum computing technology across the telecom giant's network operations. The expansion follows an early application where D-Wave's annealing quantum computing technology reduced processing time for a network optimization workload by 240 times, from approximately one hour to less than 15 seconds. The expanded agreement integrates D-Wave's quantum technology into AT&T's AI-powered network operations to tackle complex optimization challenges, forming part of AT&T's broader strategy to modernize its network using artificial intelligence, automation, advanced analytics and quantum computing.
AT&T Expands D-Wave Technology to Network Operations After 240X Speed Boost
In an early application, AT&T said D-Wave's annealing quantum computing technology reduced the processing time for a network optimization workload by 240 times, from approximately one hour to less than 15 seconds. Building on those results, AT&T plans to expand D-Wave's technology to additional network operations, including outage detection and response, technician routing, network build planning and traffic management. The company said faster processing could enable quicker decision-making and more efficient planning as it scales its fiber and 5G networks to meet growing AI-driven demand.
QBTS was among the top trending tickers on Stocktwits at the time of writing.
AT&T Evaluates D-Wave Gate-Model Systems for Quantum Security
Beyond network optimization, AT&T said it is evaluating D-Wave's forthcoming gate-model quantum computing systems for potential applications in quantum security and quantum communications. The agreement forms part of the telecom giant's broader strategy to modernize its network using artificial intelligence, automation, advanced analytics and software-defined infrastructure.
"AT&T's work with D-Wave is a powerful example of how leading enterprises are beginning to turn to quantum computing for solving real business problems," D-Wave CEO Alan Baratz said. He added that AT&T's increasingly complex network operations make it well suited to benefit from quantum computing's ability to solve optimization challenges faster than classical systems.
Benchmark Initiates QBTS Coverage with Buy Rating and $30 Price Target
Analysts at Benchmark initiated their coverage of D-Wave with a 'Buy' rating and a price target of $30, according to TheFly. The firm's price target implies an upside potential of about 85% from Friday's closing price.
QBTS stock is down 38% year-to-date, while T stock is down 3%. The iShares Russell 2000 ETF (IWM) is up 30% over the past 12 months, while the Vanguard Total Stock Market Index Fund ETF (VTI) is up 17%.
FAQ
What did D-Wave announce with AT&T on Monday?
D-Wave Quantum Inc. announced an expanded partnership with AT&T Inc. to deploy its quantum computing technology across AT&T's network operations, following a successful early application that reduced processing time for a network optimization workload by 240 times.
How much did QBTS stock rise after the AT&T announcement?
QBTS shares soared more than 11% in Monday's pre-market trading following the expanded partnership announcement with AT&T.
What price target did Benchmark set for QBTS stock?
Benchmark initiated coverage of D-Wave with a 'Buy' rating and a price target of $30, implying an upside potential of about 85% from Friday's closing price, according to TheFly.
