Quantum stocks soar after report that the Trump administration is in talks to invest directly in the sector
After speculation has swirled for weeks that the US government might consider investing in the quantum sector, discussions are now underway, with The Wall Street Journal reporting that the Trump administration is negotiating with several quantum computing companies about giving the US Commerce Department equity stakes in exchange for federal funding.
Companies in talks include IonQ, Rigetti Computing, and D-Wave Quantum, with each seeking a minimum of $10 million in funding, per the report, while others like Quantum Computing and privately held Atom Computing consider similar arrangements. The deals “haven’t been completed and might change.”
These stocks soared double digits on the initial news, and IonQ and Rigetti were the second- and third-most-traded stocks in the premarket, trailing only Tesla.
Separate sources also appeared to contradict the report. Per Reuters, a US Commerce Department official said over email that it is “not currently negotiating with any of the companies.” Quantum computing stocks all pared some of their advances after Yahoo Finance reported that taking equity stakes is “not necessarily something the Trump administration is considering,” citing a person familiar, adding that these companies (and many others) have pitched the government on buying a position.
Per JPMorgan’s Arun Jain, retail traders “are actively participating in the sharp rebound of quantum stocks,” with net purchases of about $136 million in these four stocks through 11 a.m. ET.
D-Wave Quantum is leading the rally in the cohort, and that makes some fundamental sense: this news would constitute a bigger shift in how the government feels about this particular company relative to its peers.
D-Wave CEO Dr. Alan Baratz had previously expressed feeling left out in the cold by the US government because its most prominent quantum computing technology utilizes annealing models, while its peers use gate-base models. Back in May, he told us he “couldn’t even get a foot in the door” with the US government, calling its focus on gate-based models “profoundly disappointing.” Now, if these reports are realized, the government won’t just have its foot in the door; it’ll have a seat at D-Wave’s table.
Benchmark Co. analyst David Williams said this “represents just one of several potential funding mechanisms likely to emerge as the US accelerates efforts to establish leadership in next-generation computing amid intensifying global competition, particularly from China,” citing figures from the Quantum Economic Development Consortium that show China’s public funding for the industry is roughly double that of the US.
“We believe these types of programs will further strengthen conviction in the quantum investment thesis, with growing public–private collaboration and policy support helping accelerate private-sector adoption, expand end-market applications, and drive the pace of innovation over the next several years,” he wrote.
The move builds on the government’s recent investments in important sectors: in July, the Defense Department took a 15% stake in rare earth miner MP Materials to become its largest shareholder, followed by the federal government acquiring a 10% stake in chipmaker Intel in August.
Indeed, the rally in quantum computing stocks in September was spurred in part by rumors that the US government was looking to step up its support for the industry. This measure under discussion would certainly be more aggressive than what followed by the end of the month, when the Trump administration highlighted quantum computing as a top R&D budgetary priority for fiscal 2027.
The funding, if finalized, would mark Washington’s first direct bet on the fast-growing quantum computing field, which promises to perform complex calculations far faster than today’s supercomputers, potentially accelerating breakthroughs in pharmaceuticals, semiconductors, AI, and more.
The companies reportedly discussing the deals remain deeply unprofitable, with all four companies (D-Wave, Rigetti, IonQ, and Quantum Computing) posting net losses in their latest quarter — a fact that hasn’t stopped most of them from surging this year.
Companies in talks include IonQ, Rigetti Computing, and D-Wave Quantum, with each seeking a minimum of $10 million in funding, per the report, while others like Quantum Computing and privately held Atom Computing consider similar arrangements. The deals “haven’t been completed and might change.”
These stocks soared double digits on the initial news, and IonQ and Rigetti were the second- and third-most-traded stocks in the premarket, trailing only Tesla.
Separate sources also appeared to contradict the report. Per Reuters, a US Commerce Department official said over email that it is “not currently negotiating with any of the companies.” Quantum computing stocks all pared some of their advances after Yahoo Finance reported that taking equity stakes is “not necessarily something the Trump administration is considering,” citing a person familiar, adding that these companies (and many others) have pitched the government on buying a position.
Per JPMorgan’s Arun Jain, retail traders “are actively participating in the sharp rebound of quantum stocks,” with net purchases of about $136 million in these four stocks through 11 a.m. ET.
D-Wave Quantum is leading the rally in the cohort, and that makes some fundamental sense: this news would constitute a bigger shift in how the government feels about this particular company relative to its peers.
D-Wave CEO Dr. Alan Baratz had previously expressed feeling left out in the cold by the US government because its most prominent quantum computing technology utilizes annealing models, while its peers use gate-base models. Back in May, he told us he “couldn’t even get a foot in the door” with the US government, calling its focus on gate-based models “profoundly disappointing.” Now, if these reports are realized, the government won’t just have its foot in the door; it’ll have a seat at D-Wave’s table.
Benchmark Co. analyst David Williams said this “represents just one of several potential funding mechanisms likely to emerge as the US accelerates efforts to establish leadership in next-generation computing amid intensifying global competition, particularly from China,” citing figures from the Quantum Economic Development Consortium that show China’s public funding for the industry is roughly double that of the US.
“We believe these types of programs will further strengthen conviction in the quantum investment thesis, with growing public–private collaboration and policy support helping accelerate private-sector adoption, expand end-market applications, and drive the pace of innovation over the next several years,” he wrote.
The move builds on the government’s recent investments in important sectors: in July, the Defense Department took a 15% stake in rare earth miner MP Materials to become its largest shareholder, followed by the federal government acquiring a 10% stake in chipmaker Intel in August.
Indeed, the rally in quantum computing stocks in September was spurred in part by rumors that the US government was looking to step up its support for the industry. This measure under discussion would certainly be more aggressive than what followed by the end of the month, when the Trump administration highlighted quantum computing as a top R&D budgetary priority for fiscal 2027.
The funding, if finalized, would mark Washington’s first direct bet on the fast-growing quantum computing field, which promises to perform complex calculations far faster than today’s supercomputers, potentially accelerating breakthroughs in pharmaceuticals, semiconductors, AI, and more.
The companies reportedly discussing the deals remain deeply unprofitable, with all four companies (D-Wave, Rigetti, IonQ, and Quantum Computing) posting net losses in their latest quarter — a fact that hasn’t stopped most of them from surging this year.
