D-Wave Quantum, Rigetti, IonQ Stocks Surge. They Could Get Government Backing: Report.

Quantum computing is still years away from (Dreamstime)

Key Points

• Quantum-computing stocks surged Thursday morning due to potential federal funding in exchange for equity stakes.
• IonQ, Rigetti Computing, and D-Wave Quantum are discussing granting shares to the Commerce Department.
• D-Wave Quantum rose 15%, IonQ increased 14%, and Rigetti Computing gained 11% in premarket trading.

Quantum-computing stocks were soaring early on Thursday amid excitement over potential federal funding for the sector in exchange for the U.S. government taking equity stakes in the companies.

IonQ , Rigetti Computing and D-Wave Quantum are all in talks about granting shares to the Commerce Department in exchange for minimum funding awards from Washington of $10 million each, according to The Wall Street Journal, citing people familiar with the matter.

The Commerce Department didn’t immediately respond to a Barron’s request for comment early on Thursday.

D-Wave Quantum was rising 15% in the premarket, while IonQ was up 14% and Rigetti Computing was rising 11%.

Quantum Computing was gaining 13%. It is also considering a similar arrangement, according to the Journal.

Quantum potentially represents a major advance in computing, Quantum computers have “qubits” which can have multiple states, and they can process data much faster than normal binary-based computers as a result. However, it also faces limitations, as qubits are sensitive to disturbances in the environment, which can result in unacceptably high error rates.

Write to Adam Clark at adam.clark@barrons.com