Quantum computing stocks climbed Thursday after the Trump administration reportedly moved to award $2 billion to nine companies in the sector, while taking a piece for themselves.
- QBTS stock is soaring. See the chart and price action here.
The Commerce Department has agreed to award International Business Machines Corp. (NYSE:IBM) $1 billion and GlobalFoundries Inc. (NASDAQ:GFS) $375 million. D-Wave Quantum Inc. (NYSE:QBTS), Rigetti Computing, Inc. (NASDAQ:RGTI) and Infleqtion, Inc. (NASDAQ:INFQ) expect to receive $100 million each, according to the Wall Street Journal.
The awards mark a notable expansion of Washington's strategy of using federal funding not only to support strategic industries, but also to secure potential upside for taxpayers through government-held equity positions.
CHIPS Act Funding
The funding comes from the CHIPS and Science Act, which was designed to strengthen domestic semiconductor production and support early-stage technologies viewed as critical to U.S. competitiveness.
“With today’s CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation,” said Secretary of Commerce Howard Lutnick.
“These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities,” Lutnick added.
The move follows prior Trump administration efforts to take stakes in strategically important companies, including Intel Corp. (NASDAQ:INTC) and rare earth miner MP Materials (NYSE:MP).
Washington is seeking to reduce reliance on foreign supply chains and counter China's influence in advanced technologies like quantum computing.
The awards could provide non-dilutive capital, validation and policy support for smaller names such as D-Wave and Rigetti, while also reinforcing IBM's role as a larger incumbent in the emerging field.
D-Wave Confirms Award
D-Wave Quantum confirmed Thursday that it signed a Letter of Intent for $100 million in proposed funding under the U.S. CHIPS and Science Act.
As part of the final award agreement, D-Wave would issue $100 million in shares of its common stock to the Commerce Department.
“We believe that the U.S. government’s strategic investment in D-Wave would advance the country’s global leadership position in quantum computing,” said Dr. Alan Baratz, CEO of D-Wave.
“We see this as a transformative moment for not just D-Wave, but also for quantum computing and the United States,” Baratz added.
Quantum Stocks Rally
The following quantum stocks were climbing Thursday morning:
- International Business Machines Corp. (NYSE:IBM)
- GlobalFoundries Inc. (NASDAQ:GFS)
- D-Wave Quantum Inc. (NYSE:QBTS)
- Rigetti Computing, Inc. (NASDAQ:RGTI)
- IonQ, Inc. (NYSE:IONQ)
- Quantum Computing, Inc. (NASDAQ:QUBT)
- Infleqtion, Inc. (NYSE:INFQ)
- Xanadu Quantum Technologies Ltd. (NASDAQ:XNDU)
Photo: Shutterstock
Login to comment