Investing.com -- Shares of D-Wave Quantum (NYSE: QBTS) surged 37% on Friday, extending a significant five-day rally with the stock now up 83% over the period. The climb in D-Wave’s stock price follows the company’s announcement of a stronger-than-expected revenue forecast for the current quarter, which has surpassed analysts’ expectations.

D-Wave’s optimistic revenue outlook, announced on Thursday, comes on the heels of a peer-reviewed paper published in Science that demonstrated its quantum computer’s ability to outperform one of the world’s most powerful classical supercomputers. This achievement has fueled investor enthusiasm, contributing to the stock’s ascent.

The broader quantum computing sector reflected this positive sentiment, with Quantum Computing Inc (NASDAQ: QUBT) rising 23%, IONQ Inc (NYSE: NYSE: IONQ ) gaining 11.5%, and Rigetti Computing (NASDAQ: RGTI) increasing by 19% during Fridays trading session.

The enthusiasm for quantum computing stocks comes amid advancements in the technology, which boasts superior speed and efficiency over classical computers due to its ability to perform parallel operations, predict multiple outcomes simultaneously, and store vast amounts of data. Microsoft (NASDAQ: MSFT )’s recent launch of a new quantum chip has further stoked the debate over the technology’s potential.

Despite the sector’s gains, IonQ’s stock dipped Thursday after Kerrisdale Capital announced a short position in the company. IonQ has experienced a turbulent year, with its stock down approximately 40% year to date after a more than 200% increase in 2024.

Needham analyst N. Quinn Bolton commented on D-Wave’s performance, stating, "D-Wave closed 2024 on a high note. The company achieved quantum supremacy on a real-world magnetic materials simulations problem, meaningfully strengthened its balance sheet, and announced its first-ever Advantage system sale. We maintain our Buy rating and $8.50 PT." Bolton highlighted D-Wave’s scientific publication, system sale to the Julich Supercomputing Center, calibration of a third 4,400 qubit Advantage2 processor, and an increased cash balance of over $300 million as key factors driving the positive outlook and stock movement.

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