The Trump administration’s investment in quantum computing adds to its growing portfolio of federally backed bets on industries it considers strategically important|Pierre Metivier|CC BY-NC 2.0

Quantum computing stocks rallied Thursday after the Trump administration announced plans to award nearly $2 billion in grants to nine companies developing advanced quantum technology in exchange for equity stakes.

The funding, supported by the 2022 CHIPS and Science Act, aims to strengthen America’s position in the global race for next-generation computing and improve national security capabilities. The Act was signed under former President Joe Biden.

IBM secured the largest proposed award, valued at $1 billion, pushing its shares up by more than 12%. The company said it will work with the government to build America’s first purpose-built quantum foundry in Albany, New York, making it the country’s first dedicated quantum chip factory.

The project will operate through a new company, Anderon, and focus on advanced quantum wafer production. IBM also pledged to invest another $1 billion into the effort. The company estimates the quantum industry could generate up to $850 billion in economic value by 2040.

Chipmaker GlobalFoundries is expected to receive $375 million, while D-Wave Quantum, PsiQuantum, Rigetti Computing, and Infleqtion will each receive $100 million grants. Startup Diraq is set to receive $38 million.

Investors reacted strongly to the announcement. The companies saw their shares jump by as much as 33% on the news.

The Trump administration’s investment in quantum computing adds to its growing portfolio of federally backed bets on industries it considers strategically important. After buying a 10% stake in Intel last year, it also invested in several mining companies focused on critical minerals.

Why is the Trump admin interested in quantum?
Unlike classical computers, which use binary bits (0 and 1) that hold a single value at a time, quantum computers run on qubits that can represent multiple states simultaneously. That leap in computing power could accelerate innovation across industries ranging from drug development to national defense. The tech could contribute $2.7 trillion to the world economy by 2035, McKinsey estimates.

Despite the optimism, experts say major technical hurdles, including high error rates, still stand in the way of practical large-scale quantum computers.