Shares of major quantum computing companies, including D-Wave Quantum and IonQ, have experienced significant gains in 2025. The rally is supported by a strong overall market and growing speculation that the U.S. government may soon announce new strategic initiatives to advance quantum technology.
Key Takeaways
- Quantum computing stocks like D-Wave (QBTS), IonQ (IONQ), and Rigetti (RGTI) have seen substantial year-to-date gains.
- Market anticipation of a new national quantum action plan is a primary factor driving investor interest.
- Congress is also considering the National Quantum Initiative Reauthorization Act to renew federal funding and support.
- Companies in the sector continue to secure government contracts, signaling ongoing investment in quantum development.
Market Performance and Recent Volatility
Several publicly traded quantum computing firms have recorded impressive growth in 2025. As of late September, D-Wave Quantum (QBTS) stock has surged by approximately 220% for the year.
Other notable performers include Rigetti Computing (RGTI), which has climbed 87%, and IonQ (IONQ), with a 68% advance. Quantum Computing Inc. (QUBT) has also seen its shares rise by 40% year-to-date.
Despite these strong yearly gains, the sector remains highly volatile. Recently, IonQ, Rigetti, and D-Wave shares experienced a pullback. Quantum Computing Inc. saw a more significant decline after announcing a $500 million sale of shares through a private placement.
2025 Year-to-Date Stock Performance
- D-Wave (QBTS): +220%
- Rigetti (RGTI): +87%
- IonQ (IONQ): +68%
- Quantum Computing (QUBT): +40%
This volatility reflects the early stage of the quantum industry. Investor sentiment can be influenced by broader market trends, company-specific news, and expert opinions, such as initial skepticism from Nvidia CEO Jensen Huang regarding the near-term commercial viability of the technology. However, Nvidia has since increased its investments in quantum startups.
Anticipation of New Government Initiatives
A significant catalyst for the recent stock rally is the expectation of new federal support for the quantum sector. There is speculation that the Trump administration may introduce a national action plan for quantum technology, similar to the strategy previously established for artificial intelligence.
Such a plan could be implemented through executive orders and would aim to accelerate U.S. development in the field. The overarching goal is to ensure the United States maintains a competitive edge over other nations, particularly China, in creating powerful quantum machines.
Legislative Background
The original National Quantum Initiative Act was signed into law in 2018 during President Trump's first term. It authorized over $1.2 billion in funding over five years to advance quantum information science. The act's authorization lapsed in September 2023, creating a need for new legislation to continue the coordinated federal effort.
In addition to potential executive actions, the industry is closely watching Congress for the passage of the National Quantum Initiative Reauthorization Act. This legislation would provide a renewed funding boost for quantum companies and their potential customers across various sectors, reinforcing the government's long-term commitment.
The Strategic Importance of Quantum Computing
Quantum computing operates at the subatomic level, utilizing principles of quantum mechanics to solve problems that are too complex for today's most powerful supercomputers. Its potential applications range from drug discovery and materials science to financial modeling and complex logistics.
National Security Implications
One of the most critical applications of quantum computing is in national security. A sufficiently powerful quantum computer could break the encryption standards that currently protect sensitive data worldwide, including financial transactions, government communications, and military secrets.
The development of quantum-resistant cryptography is a major focus for government agencies to defend against future threats.
In response to this threat, the U.S. National Institute of Standards and Technology (NIST) has been working since 2016 to develop new cryptographic standards. This initiative, known as "post-quantum cryptography" (PQC), aims to create encryption methods that are secure against attacks from both classical and quantum computers.
The Global Quantum Race
The U.S. government's focus on quantum technology is part of a broader global competition. While the U.S. is considered a leader in developing quantum computers, China has made significant strides, particularly in the area of quantum communications and networking. Reports indicate China has been actively testing secure quantum communication networks using both fiber-optic cables and satellites.
Recent Government Contracts Signal Continued Investment
While major policy announcements are pending, federal funding continues to flow to U.S. quantum firms through various contracts. These agreements highlight the government's ongoing investment in building out the nation's quantum capabilities.
Recent examples of this funding include:
- Rigetti Computing: In partnership with Netherlands-based QphoX, Rigetti was awarded a three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL). The project focuses on advancing superconducting quantum networking.
- IonQ: The Department of Energy announced a partnership with IonQ, Honeywell, and the Electric Power Board of Chattanooga. This collaboration will explore use cases for quantum technology in space applications.
- Quantum Computing Inc.: The company has also recently secured additional government work, further demonstrating the demand for quantum solutions within federal agencies.
These contracts provide crucial revenue for these early-stage companies and serve as important validation of their technology. The continued flow of government funds underscores the strategic priority placed on quantum development, regardless of upcoming legislative or executive actions.
