Why is the US Gov't Buying Quantum Computing Stocks...

Happy Saturday Folks, this is a good one for you…

I’ve been watching the recent move by the U.S. government into quantum computing, and it’s hard NOT to pay attention.

Historically, the government hasn’t taken direct equity stakes in public companies very often. But under Trump, we’ve now seen several strategic investments tied to industries considered critical for national security and technological leadership. Intel was an early example, and that investment alone has potentially generated tens of billions in gains for the government.

Now the focus appears to be shifting toward quantum computing.

According to recent reports (WSJ, Reuters), the administration is investing roughly $2 billion across a group of quantum-related companies — and in some cases taking equity stakes directly. IBM is expected to receive $1 billion, while GlobalFoundries is set to receive $375 million as part of the initiative.

One post on X summed up the geopolitical angle this way:

“President Trump knows US is 90% behind China in quantum technology. China already invested $30B in quantum. The US just $2B. So now he is catching up by buying:

1. $IBM → $1B

2. $GFS → $375M

3. $QBTS → $100M

4. $RGTI → $100M

5. $INFO → $100M”

Here’s a breakdown of public investment in quantum from that same X post by country:

Whether the “90% behind China” figure is right or not, the bigger message is clear: quantum computing is increasingly being viewed as a strategic race similar to AI or semiconductors.

That raises an interesting question for investors:

If the government is effectively signaling that these companies are strategically important enough to invest in directly, should individual investors start paying closer attention, too?

Obviously, quantum remains highly speculative. Many of these companies have little revenue today, and commercialization could still take years. But government backing changes the conversation. It potentially lowers funding risk, accelerates infrastructure development and creates long-term credibility for the sector.

At minimum, it feels like quantum computing just moved from “science experiment” territory into a serious national priority.

Might be worth starting a watchlist – I have! (My two personal top ones are QBTS and INFO by the way).  What about you?

Have a great weekend and I should be live again in our free trading room again with Mark on Tuesday at 11AM EST to talk about this and more. So stop on it and say hi sometime!

Happy Memorial Day weekend and see you soon,