D-Wave Quantum Inc. (NYSE: QBTS) experienced an unusually volatile week in mid-October 2025, even relative to other turbulent periods in the quantum computing star's recent history. Shares plummeted from close to $40 to under $27 each before partially reversing course late in the week, leaving the firm with a five-day return of -17.6%. While there is an argument to be made that D-Wave is substantially overvalued, and a sudden and precipitous price correction could be a signal that investors may be able to buy in at a lower price point than usual, there is also reason for caution here.
First, D-Wave's initial sell-off this week was likely the result of an announcement from Oct. 20 that the company would redeem all of its outstanding public warrants. But following that, the boost later in the week coincided with a report from the Wall Street Journal suggesting that the Trump administration may be preparing to codify its support of the quantum industry by actually taking equity stakes in a group of companies that could potentially include D-Wave. In regard to what this means for D-Wave in particular, this could be a boon for investors. However, a closer inspection likely reveals that investors should be cautious about this news and that support from the federal government—though likely beneficial for D-Wave's performance—may be more complicated than it seems.
