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]

Core Insights - Rigetti Computing, Inc. (RGTI) has seen its shares increase by over 2,800% in the past year due to excitement surrounding its quantum computing advancements, but concerns about its weak fundamentals and high valuation persist [1][8] Group 1: Quantum Technology Developments - Rigetti's 36-qubit quantum system achieved 99.5% accuracy in key operations, aiming for a 100+ qubit chiplet-based system by year-end [1] - The company signed a $5.8 million deal with the U.S. Air Force Research Laboratory to develop quantum networking technology and received orders for two 9-qubit Novera quantum computing systems worth nearly $5.7 million [2] - Capital is flowing into the quantum computing sector, with JPMorgan Chase & Co. planning to invest about $10 billion in innovative fields, including quantum computing, which has positively impacted Rigetti's stock [3] Group 2: Financial Performance and Valuation - Rigetti's operating losses increased by 24% year over year to $19.8 million in Q2, while revenues fell by 42% to $1.8 million [6] - The company's forward price-to-sales (P/S) ratio stands at an astronomical 1,348.30, compared to the Internet - Software industry's 6.28, indicating vulnerability to market corrections [7] Group 3: Competitive Landscape and Future Outlook - Rigetti's business model, which includes its own quantum processing units (QPUs), programming language, and Quantum Cloud Services (QCS) platform, provides a competitive edge [5] - Despite ongoing contracts and breakthroughs, the uncertainty of sustaining explosive growth remains, especially with competition from larger players like Alphabet Inc. and IBM [6][7] - Overall, there are indications that RGTI stock may be a bubble, with risk-averse investors advised to avoid it, while risk-takers might consider potential growth opportunities [9]

Core Insights - IonQ shares experienced a significant rally of up to 13% on October 23, following reports of the White House's interest in investing in quantum computing firms [1] - The Trump administration is reportedly willing to offer at least $10 million in federal grants in exchange for equity stakes in these companies, indicating a national priority for quantum computing [3] Federal Support Significance - The potential federal support is seen as bullish for IonQ shares, highlighting the government's long-term commitment to the quantum computing sector, comparable to semiconductors and artificial intelligence [3] - Although the $10 million grant may seem modest, it could attract more institutional capital to IonQ, enhancing its position in the rapidly growing quantum technologies market [4] Stock Performance and Projections - Following recent gains, IonQ stock is trading at over three times its price from early March [2] - Options data suggests that IonQ shares could continue to rise, with projections indicating a potential rally to above $80 within the next three months [5] - The expected price movement through the end of October is 13.57%, with an upper bound currently set at $68 [5] Technical Progress and Revenue Growth - IonQ has made impressive technical advancements this year, achieving record-breaking fidelity levels and an 82% year-over-year increase in Q2 revenue, supporting the case for further stock price appreciation [6] Market Sentiment - Wall Street firms currently view IonQ shares as an attractive long-term investment opportunity [7]

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]

Core Insights - Rigetti Computing (RGTI) is demonstrating early commercial traction with approximately $5.7 million in purchase orders for its Novera quantum processing units (QPUs) and related services, indicating validation of its hardware capabilities after extensive R&D investment [1][7] - The company secured a $5.8 million award from the Air Force Research Laboratory in collaboration with QphoX, positioning Rigetti at the forefront of quantum networking [2][7] - Despite uneven quarterly revenues, these developments suggest a turning point for Rigetti, as its technology is being adopted rather than merely tested [3][7] Company Developments - Rigetti's recent contracts and partnerships highlight a successful alignment of technological innovation with commercial opportunities, showcasing growing institutional confidence in its manufacturing and chip-packaging capabilities [2] - The deployment of two Novera systems to an Asian tech manufacturer and a California AI startup marks Rigetti's most significant commercialization milestone to date, with deployments scheduled for the first half of 2026 [1][2] Financial Performance - Rigetti's shares have increased by 136.3% year-to-date, significantly outperforming the industry growth of 19.2% [6] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates a substantial 86.1% increase compared to the previous year [10] Valuation Metrics - Rigetti is currently trading at a price-to-book ratio of 21.13, which is above the industry average, and carries a Value Score of F [8]

Well, a Trump administration official now denying an earlier report from the Wall Street Journal that said the Commerce Department is in talks with some quantum computing companies for equity stakes in exchange for funding. Quantum stocks took a dip but still higher today despite that denial. Christina Parts and Levis Partzene has more in today's tech check.Hi, Christina. >> It's been a roller coaster with this story, but like you said, the Trump administration is really pouring cold water on a report about ...

Core Insights - The Defiance Quantum ETF (NASDAQ: QTUM) combines speculative quantum computing stocks with established tech companies, providing a balanced investment approach in a high-risk sector [2][3][8] - Quantum computing holds significant potential across various industries, but current technology is still in its infancy, akin to classical computing in the 1950s [5][6] - The ETF has gained 38% year-to-date, reflecting growing investor interest, but high valuations in pure-play quantum stocks necessitate caution [9] Group 1: ETF Structure and Strategy - The Defiance Quantum ETF tracks the BlueStar Quantum Computing and Machine Learning Index, consisting of 80 positions with varying degrees of quantum exposure [7] - The fund includes both pure-play quantum companies, such as IonQ and Rigetti Computing, and profitable tech giants like Nvidia and AMD, which are investing in quantum infrastructure [7][8] - This diversification aims to mitigate risks associated with high revenue multiples and cash burn rates of pure-play quantum stocks [8] Group 2: Market Potential and Challenges - Quantum computing has potential applications in drug discovery, financial modeling, artificial intelligence, and cryptography, with markets worth hundreds of billions of dollars [5] - Current quantum computers face significant technical challenges, including the need for near-absolute-zero temperatures and high error rates, making them commercially unproven [6] - The ETF's expense ratio of 0.4% is considered reasonable for thematic exposure, but investors should be aware of the long timeline for commercialization of quantum technology [9]

Market Overview - U.S. equities showed signs of recovery on October 23, 2025, with major indexes bouncing back from a volatile session the previous day, driven by corporate earnings, U.S.-China trade relations, and a surge in oil prices [1][2] - The Dow Jones Industrial Average (DJIA) rose by approximately 0.1% or 25 points, while the S&P 500 (SPX) advanced by about 0.3%, and the Nasdaq Composite (IXIC) led gains with a rise of around 0.6% [2] Sector Performance - The Energy Select Sector SPDR (XLE) surged by 1.62%, significantly contributing to market gains, fueled by a nearly 6% increase in West Texas Intermediate crude oil futures, which reached $61.90 per barrel due to new U.S. sanctions on Russian oil companies [3] - The Technology Select Sector SPDR (XLK) experienced a slight decline of 0.34%, while Consumer Discretionary (XLY) and Health Care (XLV) sectors also finished lower [3] Upcoming Events - Investors are awaiting the Consumer Price Index (CPI) report scheduled for October 24, which is expected to provide insights into inflation trends and influence Federal Reserve policy decisions, with a 96.7% probability of a Fed rate cut in October [4] Corporate Earnings - Major companies are set to report quarterly results, including Apple (AAPL) on October 30, Microsoft (MSFT) on October 29, and Alphabet (GOOGL, GOOG) also on October 29, with expectations of strong revenue growth [5] - Intel (INTC), Ford (F), Honeywell (HON), T-Mobile US (TMUS), and American Airlines (AAL) are also expected to release their results [5] Geopolitical Factors - The White House is considering new curbs on software exports to China, which previously affected tech stocks, indicating ongoing geopolitical tensions that could lead to market volatility [6] Major Stock News - Tesla (TSLA) reported a 12% revenue increase but a 37% narrowing of net income for Q3 2025, leading to initial stock declines despite record vehicle deliveries of 497,099 units [7] - Google (GOOGL, GOOG) announced a corporate agreement for a gas-fired power plant with carbon capture technology and a significant quantum computing breakthrough, with shares climbing 0.82% [9] - Nvidia (NVDA) continued strong momentum with shares near all-time highs, driven by major AI partnerships and a $5 billion investment in Intel for a 4% stake [10] - Apple (AAPL) faced a legal setback in the UK regarding its App Store commission, but remains financially robust ahead of its earnings release [11] - Microsoft (MSFT) is expected to exceed revenue expectations, driven by strong growth in its Azure cloud business [12] - IBM (IBM) saw its stock drop despite better-than-expected profit and revenue, indicating challenges in its enterprise business [13]

Core Insights - The U.S. government is considering acquiring equity stakes in major quantum companies, prompting an update on the investment thesis for Arqit Quantum Inc. (NASDAQ: ARQQ) [1] Group 1: Investment Strategy - The focus is on identifying high-quality companies with a market capitalization of less than $10 billion that can reinvest capital for impressive returns [1] - The ideal companies should demonstrate a long-term capability of capital compounding with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] - A long-term investment perspective is emphasized to generate higher returns compared to market indices, especially in a rapidly evolving investment landscape [1] Group 2: Risk Management - A conservative investment strategy is primarily adopted, with occasional pursuit of opportunities that present a favorable risk-reward ratio [1] - Careful consideration is given to ventures with substantial upside potential and limited downside, ensuring overall portfolio stability [1]

Core Viewpoint - Quantum Stock shares are surging due to reports of potential equity stake exchanges with the Trump administration for federal funding, although some sources are denying these claims [1][2]. Group 1: Government Involvement - The Trump administration is reportedly in discussions to take equity stakes in quantum companies, which has led to significant stock price increases for firms like INQ, Regetti, and Dwave [2]. - Regetti confirmed ongoing engagement with the U.S. government regarding funding opportunities, emphasizing the importance of U.S. leadership in quantum technology for national security [3]. - The government previously converted nearly $9 billion in grants into a 10% stake in Intel, highlighting a precedent for such actions [4]. Group 2: Industry Context - Quantum firms currently have minimal revenue and are facing cash burn while developing technology that is not yet scalable, contrasting with established companies like Intel [5]. - Major tech companies such as Google, IBM, Microsoft, and Amazon are heavily investing in quantum technology, with Google recently announcing a significant breakthrough with its willow chip [6]. - The global race for quantum technology is intensifying, with countries like Australia investing nearly $1 billion in quantum initiatives, indicating a strategic focus on this emerging field [5].