"Quantum computing stocks continue to rebound following a Wall Street Journal article yesterday detailing potential U.S. government equity investments in the sector. The report outlined early discussions with the Commerce Dept., where firms could trade shares for at least $10 million each in federal funds. The story ignited investor excitement after consecutive days of declining stock prices, with QBTS, RGTI, IONQ, and QUBT all racing higher by double-digit percentages."
"The denial did little to dampen enthusiasm. All four stocks closed higher for the day, with most up by single-digit rates, though QBTS closed with an almost 14% gain. The rally is continuing this morning, with the quantum stocks offering a repeat performance as traders seemingly hang their hats on the word "currently" in the official response. They may be interpreting the denial as a temporary pause rather than a full rejection of negotiations. Some speculate the leak to the Journal might have been a premature disclosure rather than an absence of actual talks."
"This resilience ties into quantum's role as a priority technology. The CHIPS and Science Act of 2022 already allocates billions for quantum research through the National Science Foundation, including programs to expand quantum users and build a skilled workforce. Commerce officials have signaled interest in redirecting CHIPS funds to quantum projects, much like the $9 billion Intel ( NASDAQ:INTC ) deal that secured a 10% government stake."
Talks of potential U.S. government equity investments in quantum companies sparked a sharp investor rally, lifting QBTS, RGTI, IONQ, and QUBT. A Commerce Department denial that it was "not currently negotiating equity stakes" did not quell gains, as traders treated the statement as a possible pause rather than a full rejection. Market resilience reflects quantum technology's priority status and existing CHIPS and Science Act funding for research, workforce and user expansion. Officials have considered redirecting CHIPS funds to quantum projects and federal equity stakes are part of a broader strategy to secure supply chains and innovation.
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