Quantum Computing Stocks Surge on Government Investment Speculation

Shares of D-Wave Quantum experienced extraordinary volatility during Thursday's trading session, skyrocketing as much as 22% before surrendering most of those gains. The dramatic price movement followed conflicting reports about potential U.S. government investments in quantum computing companies.

Market excitement erupted after The Wall Street Journal reported early Thursday that the Trump administration was holding preliminary discussions with several quantum computing firms, including D-Wave, IonQ, and Rigetti Computing. According to the publication, government officials were considering acquiring equity stakes in exchange for funding, with minimum investments of $10 million per company.

The news ignited a broad sector rally, with D-Wave leading the charge with its double-digit percentage surge. Competitors IonQ and Rigetti Computing also posted substantial gains, while trading volumes across the quantum computing sector exploded to unusually high levels.

Conflicting Statements Create Market Confusion

The rally abruptly lost momentum later in the day when CNBC reported, citing a government official, that the administration was not engaged in equity negotiations with quantum computing companies. These contradictory accounts created significant uncertainty among investors, leading to heightened volatility and partial retracement of earlier gains.

Should investors sell immediately? Or is it worth buying D-Wave Quantum?

Despite the official denial, market observers noted the unusual specificity of the original WSJ report, which described the discussions as being in early stages without finalized agreements.

National Security Implications of Quantum Technology

A direct government investment in quantum computing companies would represent an unprecedented move for the emerging industry. Quantum technology has been increasingly recognized as strategically critical for national security, placing it in the same category as artificial intelligence and semiconductor development. For specialized quantum firms like D-Wave, which have yet to achieve profitability, such government backing would provide not only crucial capital but also significant validation of their technological approach.

D-Wave's stock had already demonstrated remarkable performance prior to this recent volatility, having surged more than 2,000% over the past twelve months.

Upcoming Financial Report Gains Added Significance

Investor attention now turns to D-Wave's scheduled November 6 earnings release, which will cover the company's third-quarter 2025 financial results. This quarterly report takes on additional importance as market participants await potential management commentary regarding the government investment speculation. Until then, analysts expect D-Wave shares to remain particularly sensitive to news flow and subject to elevated volatility.