Quantum Stocks Surge 20% on Trump Administration Investment

Several quantum computing companies will receive investments from the Trump administration, sparking a rally in the industry’s leading stocks on Thursday. US President Donald Trump and his administration have decided to invest $2 billion into the Quantum Computing industry in an effort to develop a domestic supply chain for quantum chips. Companies, including Rigetti (RGTI), IBM, and seven others, will all receive millions in investment in exchange for equity stakes for the administration.

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Spreading the Wealth: Which Quantum Companies Are Getting Investments by the US Government?

According to the US Department of Commerce, half the grant money would go to IBM, staking a new quantum chip foundry called Anderon.

Three other publicly traded companies — D-Wave Quantum (QBTS), Rigetti Computing and Infleqtion (INFQ) — each would receive $100 million. GlobalFoundries (GFS.O) would get another $375 million, while VC-backed startups: Quantinuum, PsiQuantum, Atom Computing, and Diraq each receives $100 million (except for Diraq, which receives $38 million).

The full range of the deals includes nine different companies that, according to the government, involve “a minority, non-controlling equity stake in each company as a condition for receiving the funds to enhance the return for the U.S. taxpayer.”

The move signals that quantum technology — a sector garnering intense investor interest despite questions about its near-term commercial viability — is set to join the administration’s portfolio of investments, which already spans semiconductors, steel, nuclear energy, and rare earth minerals. Additionally, the move also underlines the growing prominence of quantum computing in national security. As the Trump administration has consistently stated, it is battling China in several ways, from AI to weapons development and national security. The investment into its homegrown quantum sector is a big move towards accomplishing that.

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Furthermore, The funding for the quantum deals comes from the 2022 Chips and Science Act, which includes money for earlier-stage technology projects. Commerce Secretary Howard Lutnick has overhauled the office, asking semiconductor companies to increase their domestic investments and taking a nearly 10% stake in Intel (INTC) which has seen shares surge since the unusual deal. The US government will receive a minority equity stake in each quantum company, adding to similar deals its done this year.

Rigetti, D-Wave Quantum, IBM Quantum Stocks Rally Double Digits After $100M Investments

Shares in the quantum stocks receiving US investments surged on Thursday by double digits. Rigetti (RGTI) and D-Wave (QBTS) were two of the biggest gainers on the day, surging over 40% each, Quantum Computing (QUBT) and IBM stock also surged, indicating those companies being invested in all got a boost.

Further, Wall Street experts welcomed the investments in the Quantum stocks, saying they meant big things ahead for the sector. “While quantum computing still carries meaningful technological and commercialization risks, government co-investment may give institutional investors greater confidence to evaluate these companies more seriously,” said Brandon Sun, managing director at Cohen Capital Markets, who has advised several quantum companies on their paths to going public.

GlobalFoundries’ stock (GFS) rose 14.9% on Thursday, as the same report said the chip maker’s deal with the Trump administration includes $375 million in funding. Other companies in line to see $100 million in funding, according to the Department of Commerce, included Infleqtion (INFQ), whose shares gained 31.5% on Thursday as well.

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