The Rise of Quantum Computing Stocks
Quantum computing stocks experienced a surge on Tuesday, defying a global downturn in technology shares. This unexpected rise followed President Donald Trump signing two executive orders aimed at enhancing the U.S. quantum computing ecosystem and addressing cybersecurity threats posed by advanced quantum computers.
The first executive order mandates that federal agencies collaborate with the private sector and academics to deploy a quantum computer capable of conducting scientific research by 2028. The second order directs agencies and government security experts to strengthen security systems across both the government and private sectors to prevent quantum hacks from disrupting critical infrastructure.
Additionally, Trump mandated that the U.S. Department of Energy establish a national benchmarking center within 180 days to evaluate the performance of quantum computers. The Quantum Computer for Application Development and Discovery Science (QC-ADDS) initiative aims to construct and deploy a "science-grade" quantum computer at a DOE facility by 2028.
Jefferies analyst Kevin Garrigan commented on the significance of these orders, stating, "President Trump signed two executive orders that put a shot clock on U.S. quantum computing." He noted that the QC-ADDS mandate creates a near-term procurement flywheel and that the federal focus extends beyond just compute. Together, these orders signal a shift in tone: Quantum is no longer a long-dated research ambition but a near-term national security and infrastructure priority.
Expanding the U.S. Quantum Strategy
The executive orders also broaden the U.S. quantum strategy beyond standalone computing, treating quantum networking as a core national priority. Federal agencies are directed to submit five-year plans specifically for quantum-enabled networks.
In May, the Trump administration announced a $2 billion funding initiative for the industry. This funding aims to ensure U.S. leadership in quantum technology over countries like China. While the federal funding for quantum companies will come from the 2022 CHIPS and Science Act, which provides strings-free grants, the quantum program requires companies to offer the Department of Commerce minority equity stakes in their businesses.
Volatility in Quantum Computing Stocks
Despite the positive developments, some quantum computing stocks saw gains on the stock market today, while artificial intelligence plays, especially memory-chip makers, retreated. The Nasdaq composite fell 1.5%.
Quantum computing operates at a subatomic level and utilizes exotic technologies, such as supercold superconductor chips. Its goal is to solve problems too complex for traditional computers, such as simulating chemical reactions. Unlike traditional computers that use electronic circuits to store information as digital zeros and ones, quantum machines rely on processors known as "qubits."
The IBD Methodology: Investing in Stocks While Managing Risks
Qubit-based computing is susceptible to errors caused by small environmental disturbances and other factors. For quantum computing to reach its full potential, logical qubits will require robust error correction. The race is on to build "fault-tolerant" quantum computers that can scale up and correct errors, enabling complex, sustained calculations.
Quantum computing stocks have been volatile since late 2024 when Alphabet's GOOGL Google announcement sparked a significant rally. Google's "Willow" quantum device made waves in late 2024 due to its low error rates.
However, uncertainty regarding commercialization and competition from tech industry giants remain key challenges. AI-chip leader Nvidia NVDA has offered differing views. Nvidia has been a major investor in quantum startups.
In 2026, IonQ IONQ stock has risen nearly 30% as of Monday's market close. Shares in D-Wave Quantum QBTS were down 6%. Meanwhile, Rigetti Computing RGTI had pulled back 3%.
For updates on artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech.
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