Shares of IonQ Inc. (NYSE:IONQ), Rigetti Computing (NASDAQ:RGTI), and D-Wave Quantum (NYSE:QBTS) surged 13.71%, 11.67% and 15.90%, respectively, in premarket trading on Thursday, on reports that the Trump administration was exploring the possibility of acquiring stakes in U.S. quantum computing firms.
Federal Funding Could Start At $10 Million: Report
The administration is in discussions with these companies, among others, to potentially become shareholders in return for federal funding. The Wall Street Journal reported that the funding could start at $10 million per company.
The talks are being led by U.S. Deputy Commerce Secretary Paul Dabbar, a former quantum-computing executive and Energy Department official. Other companies, such as Quantum Computing Inc. (NASDAQ:QUBT) and Atom Computing, are also reportedly considering similar arrangements, according to the report.
Quantum Stocks Face Market Headwinds
On Wednesday, shares of D-Wave Quantum took a hit due to a broader market downturn, triggered by a Reuters report on potential U.S. restrictions on exports to China. The report suggested that these restrictions could significantly limit access to the Chinese market, creating uncertainty for future revenue and growth.
Rigetti Computing and other quantum computing stocks also experienced a sell-off due to the same report, despite a recent surge in optimism for the quantum computing industry. The Trump administration has shown support for the industry, signing the National Quantum Initiative Act to accelerate development.
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