National Security & Competition - The U.S is in early talks to invest in quantum computing companies to maintain competitiveness with China and safeguard national security [1]

Core Insights - The Trump administration is negotiating with U.S. quantum computing companies for equity stakes in exchange for federal funding [1][2] - Companies involved include IonQ Inc., Rigetti Computing, and D-Wave Quantum, with discussions led by U.S. Deputy Commerce Secretary Paul Dabbar [2][3] - Funding awards are expected to start at $10 million each, with other firms like Quantum Computing Inc. and Atom Computing considering similar arrangements [3] Government Involvement - The U.S. government previously acquired nearly a 10% stake in Intel by converting $9 billion in grants into equity [5] - The Department of Defense gained a roughly 15% stake in MP Materials, potentially making it the largest shareholder [6] Industry Developments - Microsoft has demonstrated advancements in practical quantum computing, indicating that significant breakthroughs may occur in the near future [7] - Other major players like Google and IBM are also reporting accelerated progress in quantum computing technology [7]

Core Viewpoint - The Trump administration is not negotiating equity stakes in U.S. quantum computing firms, countering a report that suggested potential investments in companies like IonQ, Rigetti Computing, and D-Wave Quantum [1][2][11] Group 1: Government's Position on Quantum Computing Investments - The Commerce Department confirmed that it is not currently in talks to take equity stakes in quantum computing companies [1] - This statement follows a Wall Street Journal report that claimed the administration was considering investments to enhance the U.S. technological edge against China [2] - The White House reiterated that it is not in discussions with the companies mentioned in the Journal's report [11] Group 2: Context of Quantum Computing Industry - Quantum computing is recognized as a significant emerging technology with implications for defense and artificial intelligence, with analysts predicting viable commercial machines within five years [5] - Global revenue for quantum computing was reported to be under $750 million in 2024, with most U.S. federal investment focused on research grants and public-private partnerships rather than equity stakes [6] - The government has previously taken equity stakes in other technology firms, such as a 10% stake in Intel and a 15% stake in MP Materials, indicating a cautious approach to direct ownership in frontier technologies [5][9]

Welcome back to Market on Close. I'm Marley Kaden here in Chicago alongside Sam Bodis at the New York Stock Exchange. We'll close out our show how we always do with some final thoughts on this session.Oil prices spiking after the Trump administration announced new sanctions on Russia's two largest energy companies. That move sparked fears of tightened global supply, sending crude briefly above some recent highs. Analysts telling us they say the sanctions could keep the energy markets volatile as traders gau ...

The markets are focusing on progress in US-China trade talks, as President Trump reiterated his threat on Monday to boost tariffs on Chinese goods “if there isn’t a deal” by November 1. President Trump is scheduled to meet Chinese President Xi Jinping next Thursday on the sidelines of the Asia-Pacific Economic Cooperation conference in South Korea.Late Wednesday, the Trump administration announced sanctions on Rosneft PJSC and Lukoil PJSC, Russia’s biggest oil producers, due to “Russia’s lack of serious com ...

The US has no reason to be caught off guard by China closing the gap in the race for quantum computing, writes @cathythorbecke (via @opinion) https://t.co/UEhjP2quMY ...

Key Takeaways Rigetti's stock soared over 2,800% amid major contracts and quantum technology milestones. The firm secured U.S. Air Force and Novera deals worth over $11 million combined.Despite progress, falling revenue, higher losses and a lofty valuation raise red flags.Rigetti Computing, Inc.’s (RGTI) shares have gained more than 2,800% in the past year as investors showed excitement over its quantum breakthroughs. However, Rigetti’s weak fundamentals and lofty valuation raised doubts about its future gr ...

Core Viewpoint - D-Wave (QBTS) shares surged over 20% on October 23 due to reports of potential U.S. government equity stakes in quantum technology companies, although government representatives denied any negotiations with quantum firms [1][3]. Government Investment - The U.S. government is considering a federal investment program that may involve minimum funding awards of $10 million per firm through the Commerce Department [1]. - Such federal capital injection could enhance D-Wave's financial stability, helping to offset significant operational losses as the company is still in its early, high-cost development stages [3]. Strategic Importance - If President Donald Trump proceeds with taking a stake in D-Wave, it would validate the strategic importance of quantum computing for national security, potentially boosting investor confidence and making D-Wave shares a more secure long-term investment [4]. Stock Performance and Projections - Despite a recent rally, QBTS stock remains down approximately 30% from its recent high of nearly $45 [2]. - Options traders suggest continued momentum for QBTS stock, with expectations of reaching the $44 level by mid-January, while the expected move for the near term is 16.08%, within a trading range of $26.23 to $36.27 [5]. - D-Wave's unique approach, offering both gate-model quantum computing and quantum annealing, suggests a higher likelihood of long-term stock upside [6]. Analyst Sentiment - Wall Street analysts maintain a bullish outlook on D-Wave, with a consensus rating of "Strong Buy" and price targets as high as $50, indicating a potential upside of another 60% from current levels [7][8].

Core Technology Trends - Technology is currently driving the broader market and economy, with AI capital expenditures being a significant contributor to economic performance [2][3] - Major tech companies like Amazon, Microsoft, and Alphabet are both driving and benefiting from increased spending on AI [3][4] Company Performance - IBM reported a solid quarter with growth across all major divisions, including software, infrastructure, and consulting, which showed a 3% year-over-year growth [7][8] - Tesla's stock has more than doubled in the past year, but recent performance has been affected by concerns over net profit margins [8][9] - Analysts have differing views on Tesla's valuation, with some focusing on future potential rather than current product offerings [11][12] Advertising and Economic Indicators - Advertising spending is a critical indicator of economic health, particularly for companies like Meta and Alphabet, which rely heavily on ad revenue [15][17] - The upcoming earnings reports from major tech companies will provide insights into advertising trends and overall capital expenditures [16][18] Capital Expenditures and Future Investments - Significant capital expenditures are expected from major tech firms, with Oracle projecting over a trillion dollars in spending for data centers [19][20] - The quantum computing sector is experiencing volatility, with stocks rising based on speculative interest rather than established business models [21][22] Market Sentiment and Speculation - The quantum computing market is characterized by high speculation, with many companies still in the experimental phase and not yet generating revenue [22][23] - Investors are advised to be cautious in this space, as many ventures may not succeed and could involve risks of fraud [23]

Group 1 - The Trump administration has denied current negotiations for equity stakes in quantum computing companies such as IonQ, Rigetti Computing, and D-Wave Quantum, yet shares in these companies rose [1] - The term "currently" in the statement leaves room for future discussions, and "equity" may indicate alternative deal structures, such as warrants allowing the government to purchase shares at a predetermined price later [2] - Rigetti Computing emphasized ongoing engagement with the U.S. government regarding funding opportunities, highlighting the importance of U.S. leadership in quantum breakthroughs for national security [3]