Software Bear Market: Should You Buy the Dip in D-Wave Quantum Stock Right Now?

The Motley Fool

by newsfeedback@fool.com (Adam Spatacco)

February 25, 2026

AI-Generated Deep Dive Summary

The technology sector has experienced a significant downturn recently, with software stocks bearing the brunt of the decline. While the broader market, as tracked by the Invesco QQQ Trust, has only dropped 2% over the past month, the iShares Expanded Tech-Software Sector ETF has fallen nearly 18%. This sell-off has even impacted quantum computing stocks, such as D-Wave Quantum (NYSE: QBTS), which has lost 37% of its value in the same period. The article questions whether this decline presents a buying opportunity or if it signals further trouble ahead. The drop in software and tech stocks is attributed to several factors, including rising artificial intelligence infrastructure budgets and breakthroughs from generative AI models. These developments have shifted investor sentiment, leading to a reevaluation of tech sector investments. While the broader market has shown some resilience, the tech-software sector has been particularly hard-hit, with quantum computing stocks like D-Wave Quantum feeling the impact alongside others. Quantum computing, once seen as a promising frontier in technology, is now under scrutiny due to its perceived lack of immediate practical applications and profitability. D-Wave Quantum, a leader in the field, has faced challenges in translating its innovative technology into market success. Investors are now weighing whether the company's long-term potential justifies the significant risks associated with its current stock price decline. For readers interested in finance and investing, this situation highlights the importance of assessing both short-term market dynamics and long-term investment potential. While the tech sector's volatility offers opportunities for those willing to take on risk, it also underscores the need for careful analysis and consideration of emerging trends like AI's impact on traditional software investments. Whether D-Wave Quantum is a "falling knife" or a undervalued opportunity will likely depend on how quickly the company can demonstrate tangible progress and profitability in the face of these challenges.

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Originally published on The Motley Fool on 2/25/2026