America’s $2 Billion Quantum Bet Sent Investors Scrambling for Stocks

The funding push comes as governments worldwide race to secure leadership in quantum technologies, a market projected to grow from about $1.8 billion in 2025 to more than $12 billion by 2032, according to Fortune Business Insights. The consulting firm McKinsey estimates quantum computing could create up to $1.3 trillion in economic value annually by 2035, while the World Economic Forum says public and private investment in the sector has already exceeded $50 billion globally as countries seek breakthroughs in drug discovery, financial modeling, advanced materials and national security applications.

Quantum stocks surge after U.S. unveils $2 billion incentives, equity stakes in firms

Shares of quantum computing companies have rallied after the U.S. government said it plans to provide about $2 billion in grants to nine companies developing quantum technologies, while also taking minority equity stakes in the firms.

The U.S. National Institute of Standards and Technology (NIST) said it had signed letters of intent outlining the proposed awards, which would be funded through the 2022 CHIPS and Science Act. The agency said it would take non-controlling stakes in each recipient company.

The package marks one of the largest U.S. government efforts to accelerate the commercialization of quantum computing, a technology widely viewed as a strategic priority because of its potential applications in cryptography, drug discovery, materials science and national security.

IBM emerged as the largest beneficiary, with the U.S. Commerce Department proposing a $1 billion award. The technology company said it would partner with the government to develop what it described as America’s first purpose-built quantum foundry. IBM shares jumped 12%.

The company said the funding would support research and development activities at a new subsidiary, Anderon, which IBM plans to back with a matching $1 billion investment.

“Headquartered in Albany, New York as a standalone company, Anderon will operate as a state-of-the-art 300-millimeter quantum wafer foundry,” IBM said in a statement. “It will help the nation solidify its leadership at the center of a thriving new quantum industry that is estimated to generate up to $850 billion in economic value by 2040 and spur American economic growth while also bolstering national security.”

Semiconductor manufacturer GlobalFoundries is set to receive $375 million, while quantum computing companies D-Wave Quantum, Rigetti Computing and Infleqtion are each slated for awards of $100 million. Startup Diraq would receive $38 million, while PsiQuantum is expected to secure $100 million.

Investor enthusiasm spread across the sector. D-Wave shares surged 33%, Rigetti climbed 30% and Infleqtion rose about 31%. Companies not included in the funding package also benefited from the optimism, with Arqit gaining 25%, IonQ advancing 12% and Quantum Computing Inc rising 19%.

The proposed awards remain subject to final agreements. The Commerce Department did not immediately respond to requests for comment.

The announcement comes as governments worldwide race to secure leadership in quantum technologies. Analysts estimate the sector could generate hundreds of billions of dollars in economic value over the coming decades, although most companies remain in the development stage and have yet to achieve large-scale commercial deployment.

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