Core Viewpoint - The Trump administration is negotiating with several U.S. quantum computing companies to replicate the investment model used with Intel, seeking equity in exchange for federal funding support [1][4]. Group 1: Government Involvement - Companies involved in discussions include IonQ, Rigetti Computing, D-Wave Quantum, Quantum Computing, and Atom Computing, with some seeking a minimum funding amount of $10 million [4]. - The U.S. government previously invested $8.9 billion in Intel, acquiring 9.9% of its shares, making it one of Intel's largest shareholders [4]. - The U.S. Department of Defense agreed to purchase $400 million in preferred stock from MP Materials, becoming its largest shareholder, which led to a 50% increase in the company's stock price [4]. Group 2: Market Reaction - Following the news, shares of several quantum computing companies surged, with IonQ up over 11%, D-Wave up over 20%, Rigetti up over 13%, and Quantum up over 10% [5]. - Specific stock price changes include D-Wave Quantum at $32.879 (+20.48%), Rigetti Computing at $40.910 (+13.45%), and IonQ at $61.725 (+11.32%) [6]. Group 3: Quantum Computing Landscape - Quantum computing is viewed as a critical next-generation technology capable of performing calculations that would take traditional computers billions of years [8]. - Despite the promising outlook, no company has yet achieved practical, large-scale commercial quantum computing [8]. - Microsoft announced a breakthrough in quantum computing with the creation of the world's first "topological conductor," which is theorized to be highly resistant to interference [8]. - PsiQuantum completed a $1 billion Series E funding round to build the world's first commercially viable fault-tolerant quantum computer [8]. Group 4: Industry Perspectives - NVIDIA CEO Jensen Huang previously expressed skepticism about the timeline for practical quantum computers, stating they may take decades to develop, but later reversed his stance, acknowledging the potential of quantum computing [9].

Key Points Quantum computing is increasingly being viewed as technology that is critical to national economic security. A government stake in companies like D-Wave Quantum only bolsters this thesis. This may also lead to more investment into the sector. 10 stocks we like better than D-Wave Quantum › Shares of D-Wave Quantum (NYSE: QBTS) blasted nearly 21% higher as of 10:39 a.m. ET today after The Wall Street Journal reported that the U.S. government may take an equity stake in several of the pur ...

Group 1 - Quantum computing stocks surged on Thursday, with D-Wave Quantum rising nearly 22%, Rigetti Computing up over 15%, IonQ Inc increasing by nearly 12%, and Quantum Computing up 11% [1] - Several quantum computing companies are negotiating to transfer equity to the U.S. Department of Commerce in exchange for federal funding support, indicating an expansion of government intervention in key economic sectors [1] - Companies including IonQ, Rigetti Computing, and D-Wave Quantum are discussing making the U.S. government a shareholder in return for a minimum funding of $10 million per company, with other tech firms expected to join this funding competition [1]

Core Viewpoint - Quantum computing stocks surged in the US market, indicating strong investor interest and potential government support for the sector [1] Group 1: Stock Performance - D-Wave Quantum (QBTS.US) rose nearly 22% - Rigetti Computing (RGTI.US) increased over 15% - IonQ Inc (IONQ.US) gained nearly 12% - Quantum Computing (QUBT.US) climbed 11% [1] Group 2: Government Involvement - Several quantum computing companies are negotiating to transfer equity to the US Department of Commerce in exchange for federal funding support [1] - Companies like IonQ, Rigetti Computing, and D-Wave Quantum are in discussions to make the US government a shareholder for access to specialized funding [1] - Other firms, including Quantum Computing Inc and Atom Computing, are also considering similar arrangements [1] Group 3: Funding Details - The companies are seeking a minimum funding amount of $10 million from the government for each enterprise [1] - Other technology companies are expected to join the competition for these funds [1]

Group 1 - The Trump administration has taken ownership stakes in five publicly-traded companies, including Intel (10%), MP Materials (15%), Lithium America (10%), Trilogy Metals (10%), and U.S. Steel Corp. (golden share partnership) [1] - At least five quantum computing funds are in discussions for federal funding in exchange for equity stakes, with companies like IonQ, Rigetti Computing, and D-Wave Quantum being potential targets [2] - The U.S. government's direct equity investment in private critical mineral companies signifies a shift in industrial policy, moving away from traditional methods like grants and loans [4] Group 2 - The motivation behind the government's equity stakes is to accelerate domestic mineral production, reduce reliance on China, and rebuild critical supply chains [5] - Lockheed Martin is identified as a potential candidate for government equity investment due to its alignment with national interests and reliance on federal budgets [6]

Core Viewpoint - The market behavior in the quantum computing sector is characterized by a significant divergence between legacy company IBM and its pure-play rivals, with IBM's stock declining despite having advanced quantum products, while other companies in the sector are experiencing substantial gains [1][2][3]. Company Performance - IBM's stock fell by 6.54% in premarket trading, despite being recognized for having the "most advanced quantum product" [2][3]. - In contrast, stocks of IonQ Inc. increased by 9.74%, Rigetti Computing Inc. rose by 7.52%, and D-Wave Quantum Inc. surged by 10.77% following reports of potential equity stakes from the Trump administration [3]. Valuation Metrics - Rigetti Computing has an extraordinarily high Price-to-Sales (P/S) ratio of 1,136, while IonQ and D-Wave have P/S ratios of 241 and 313, respectively [5][7]. - IBM, despite its advanced product, has a much lower P/S ratio of 4.159, highlighting a disconnect between its fundamentals and the market's speculative behavior [6][7]. Market Sentiment - The recent rally in quantum stocks is attributed to retail investors, with indications that the momentum may be overheating, as suggested by The Arora Report [4][5]. - The report describes these quantum stocks as "poster children of several excesses," indicating that they are trading significantly above their intrinsic values [5].

Core Insights - The U.S. government is exploring diversification of its investment portfolio, particularly in quantum computing, with discussions ongoing with at least five funds for potential equity stakes in exchange for federal funding [1][2] - The government has previously made significant investments, including a 10% stake in Intel and a 15% stake in a major rare earths miner [1] - The initial investment discussions with quantum computing companies are expected to start at $10 million, which is considerably lower than the $9 billion in grants converted to equity for Intel [2] Company Developments - Companies such as IonQ, Rigetti Computing, and D-Wave Quantum are in talks to add the government as a shareholder, with Quantum Computing Inc. and Atom Computing also considering similar arrangements [2] - Shares of IonQ and D-Wave saw a 9% increase in pre-market trading, while Rigetti and Quantum Computing stocks rose by 7% and 11% respectively, indicating positive market sentiment towards these companies [3] Industry Outlook - Quantum computing is viewed as a transformative technology, comparable to artificial intelligence, with the potential to perform complex simulations much faster than current computers [3] - Bank of America has expressed a highly optimistic view on quantum computing, suggesting it could be the most significant revolution since the discovery of fire, although practical applications are still years away [4] - Despite the enthusiasm, experts indicate that it may take until the end of the decade for useful quantum computers to be developed, with commercial breakthroughs potentially another decade away [4] Government Investment Strategy - No investment deals have been finalized with the current administration, and specific terms for potential investments remain undefined [5] - By acquiring equity stakes, the government could gain more control over the rollout of quantum technology and benefit financially if the stock prices of these companies increase [5]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Ventyx Biosciences, Inc. (VTYX) increased by 108% to $8.05 - Brera Holdings PLC (SLMT) rose by 49% to $12.50 - Safe & Green Holdings Corp. (SGBX) gained 39% to $3.18 - American Rebel Holdings, Inc. (AREB) up by 26% to $2.71 - Tango Therapeutics, Inc. (TNGX) increased by 18% to $10.25 - Garrett Motion Inc. (GTX) rose by 14% to $14.30 - ETHZilla Corporation (ETHZ) gained 12% to $17.61 - D-Wave Quantum Inc. (QBTS) increased by 11% to $30.40 - IonQ, Inc. (IONQ) rose by 10% to $61.04 - Megan Holdings Limited (MGN) up by 7% to $2.31 [3] Premarket Losers - Splash Beverage Group, Inc. (SBEV) decreased by 21% to $2.06 - Molina Healthcare, Inc. (MOH) down by 18% to $158.44 - SCHMID Group N.V. (SHMD) fell by 18% to $3.18 - Beyond Meat, Inc. (BYND) decreased by 18% to $2.91 - Agencia Comercial Spirits Ltd (AGCC) down by 16% to $5.07 - Super League Enterprise, Inc. (SLE) fell by 13% to $2.25 - Armata Pharmaceuticals, Inc. (ARMP) decreased by 12% to $5.99 - Applied DNA Sciences, Inc. (BNBX) down by 12% to $4.19 - Ribbon Communications Inc. (RBBN) fell by 12% to $3.49 - Tamboran Resources Corporation (TBN) decreased by 11% to $21.81 [4]

Quantum Computing Sector - Quantum computing stocks, including IonQ, Rigetti Computing, and D-Wave Quantum, have seen significant premarket gains following reports of the Trump administration negotiating equity stakes in these firms [3][4] - IonQ shares rose by 14.3%, Rigetti Computing by 13.8%, and D-Wave Quantum by 13.6% in premarket trading [5] Oil Industry - Crude oil prices have increased after the U.S. imposed sanctions on Russia's two largest oil producers, Rosneft and Lukoil, marking a direct economic response to the war in Ukraine [9][10] - The sanctions could restrict foreign entities from engaging in business with these Russian companies, potentially isolating them from the international financial system [10] - Rosneft and Lukoil account for nearly half of Russia's crude oil exports, approximately 2.2 million barrels per day in the first half of the year [10]

We recently published Market Shockers: 10 Stocks Collapse by Double Digits. D-Wave Quantum Inc. (NYSE:QBTS) is one of the best performers on Wednesday. D-Wave Quantum fell for a 5th straight session on Wednesday, dropping 15.22 percent to close at $27.29 apiece as investors unloaded positions amid an overall market pessimism, while digesting the redemption of its outstanding warrants. This followed announcements earlier this week that it would officially redeem its 5 million outstanding warrants, which a ...