Quantum computing stocks are having a moment in Thursday's pre-market trading, and it's all thanks to a massive government cash infusion. The Trump administration has announced a $2 billion investment in nine quantum computing companies, with the Commerce Department taking equity stakes in each firm as part of the deal, according to a report from the Wall Street Journal.
Shares of Infleqtion Inc. (INFQ) surged 25.4%, while D-Wave Quantum Inc. (QBTS) jumped 17.65% and Rigetti Computing Inc. (RGTI) climbed 14.58%. Quantum Computing Inc. (QUBT) and IONQ Inc. (IONQ) also rose 13.49% and 7.67%, respectively. The rally isn't limited to pure-play quantum firms—IBM (IBM), a quantum computing frontrunner, is set to receive half of the funding, or $1 billion, and its shares gained 6.69%. Chip manufacturer GlobalFoundries (GFS), which will get $375 million, saw its stock rise 14.79%.
The funding is part of the Trump administration's broader strategy to harness quantum computing for scientific research, economic growth, and national security. The money comes from the 2022 Chips and Science Act, which also backs early-stage technology projects. The government will take minority equity stakes in each quantum company, similar to past deals with firms like Vulcan Elements and MP Materials (MP), though the Commerce Department hasn't disclosed the size or structure of those stakes.
This isn't a completely new idea. Back in October, there were reports that the Trump administration was in talks with several U.S. quantum computing firms about exchanging federal funding for equity stakes. At the time, initial grants were expected to start at around $10 million per company, with firms like Quantum Computing Inc. and Atom Computing reportedly evaluating similar arrangements. Now, the government is moving fast, with a $2 billion commitment that dwarfs those earlier discussions.
The Commerce Department did not immediately respond to requests for comment.
For investors, the message is clear: the U.S. government is betting big on quantum computing, and it's willing to take an ownership stake to ensure the technology stays competitive. Whether that's a good deal for taxpayers or shareholders remains to be seen, but for now, the market is cheering the news.
