Quantum computing stocks went along for the ride last week as the Dow Jones, S&P 500, Nasdaq composite and Russell 2000 all hit record highs. But speculation that the Trump administration could soon unveil new U.S. quantum technology initiatives also could be fueling the rally in shares of D-Wave Quantum (QBTS), IonQ (IONQ), Quantum Computing (QUBT) and Rigetti Computing (RGTI).
Further, the industry has been waiting to see if Congress passes the National Quantum Initiative Reauthorization Act, which would provide a funding boost for quantum computing companies as well as potential customers. The original National Quantum Initiative Act, passed in 2018 during President Donald Trump’s first administration, lapsed in September 2023.
Trump could issue executive orders, though, without endorsing new legislation. Another possibility is that the Trump administration could issue a national action plan similar to artificial intelligence.
The U.S. government wants to leap ahead of China and others in developing quantum machines that outperform today’s electronics-based supercomputers in problem solving. There’s also a defensive aspect.
Quantum Computing Stocks: Federal Funding
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, quantum computing’s ultimate benefit is that it aims to solve problems too complex for today’s classical computers, such as simulating chemical reactions.
One expected application of quantum computers will be to break the most widely used cybersecurity protocols in the world. The National Institute of Standards and Technology, or NIST, began work on developing new quantum-resistant algorithms in 2016. NIST has been developing “post-quantum cryptography,” or PQC, standards.
While China generally has been viewed as lagging the U.S. in quantum computing, it may be ahead in quantum communications, also called quantum networking. China has been testing secure quantum communications in fiber-optic and satellite networks.
What’s clear is that U.S. government funding continues to flow to quantum companies. Rigetti and Netherlands-based QphoX last week were awarded a three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) to advance superconducting quantum networking.
Also, the Department of Energy last week announcement that it will partner with IonQ, Honeywell (HON) and the Electric Power Board of Chattanooga to develop technology use cases in space. Meanwhile, Quantum Computing has picked up more government work recently.
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Quantum Stocks Volatile
D-Wave stock has surged 220% in 2025 as of Monday’s market open. IonQ stock has advanced 68% in 2025. Further, IonQ builds its quantum systems around trapped-ion technology.
Also, Rigetti stock has climbed 87% this year. Quantum Computing gained 40% in 2025.
All four had huge gains over the last two weeks.
However, IonQ stock fell modestly early Monday while Rigetti and D-Wave retreated solidly. Quantum Computing stock solid off as the company announced the sale of $500 million via private placement.
Quantum computing stocks have been volatile in 2025 amid controversy involving Nvidia (NVDA) CEO Jensen Huang, who initially cast doubt over how soon commercially viable quantum technology will be available. Nvidia, though, has now stepped up investments in quantum startups.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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