D-Wave Quantum Inc. (QBTS) shares plummeted 5.09% in pre-market trading on Tuesday, as investors took profits following the stock's staggering 1,002% surge over the past six months. The sharp decline comes amid growing concerns about the quantum computing pioneer's lofty valuation and a broader pullback in the quantum computing sector.

Despite recent technological breakthroughs and strong booking growth, D-Wave's current stock price reflects extremely optimistic expectations about the company's future. Trading at 87.2 times projected 2026 sales, the valuation assumes near-perfect execution for years to come, making some investors wary. This rich valuation, coupled with the stock's meteoric rise, has likely prompted a round of profit-taking.

The pre-market downturn in D-Wave shares also coincides with a pullback in other quantum computing stocks, which have seen significant gains in recent months due to advancements in the field and increased interest from major tech companies. As the hype surrounding quantum computing momentarily cools, investors appear to be reassessing their positions in these speculative, high-growth stocks. Despite the short-term volatility, long-term investors may still see potential in D-Wave's technology and the broader quantum computing market, which is projected to create up to $850 billion in economic value by 2040.