Key Points
- Quantum computing stocks soared on Thursday.
- The rally was sparked by a report that the U.S. government may take equity stakes in several quantum companies.
- The government would provide federal funding in exchange for the ownership stakes.
- This is part of a new trend in which the U.S. government is taking direct stakes in strategic companies.
Quantum computing stocks soared on Thursday after a Wall Street Journal report said the U.S. government is in talks to take direct equity stakes in several companies in exchange for federal funding. Shares of IonQ, Rigetti Computing, D-Wave, and Quantum Computing all jumped on the news.
The potential investments, which would come from the Commerce Department, are part of a new and unusual trend in which the U.S. government is taking ownership stakes in private companies deemed critical to national security. The government has already taken similar stakes in chipmaker Intel and rare earth miner MP Materials.
This is a major potential boost for the quantum computing industry, which is still in its early stages. While quantum computers have the potential to solve problems that are beyond today’s supercomputers, the technology remains fragile and error-prone. This new infusion of government cash—and the vote of confidence it carries—could help accelerate the development of practical, real-world applications.
The U.S. government has been a long-time supporter of quantum research, but taking direct ownership stakes is a new level of involvement. The move is reportedly part of the Trump administration’s overhaul of the CHIPS Act commitments of the previous administration.
Quantum stocks have been on a wild ride this year, soaring on news of technological breakthroughs and then pulling back. This latest news has sent them flying once again, with investors betting that a direct partnership with the U.S. government is a game-changer for the industry.
