U.S. Government Invests $2 Billion in Quantum Computing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2026
0mins
Source: Fool
- Large Investment Scale: The U.S. Department of Commerce announced a $2 billion investment across nine quantum computing companies under the CHIPS and Science Act, granting the government minority equity stakes in each, highlighting the importance of quantum technology and its potential in AI.
- Key Companies Funded: International Business Machines (IBM) will receive $1 billion to establish a new quantum foundry subsidiary called Anderon, while GlobalFoundries is raising $375 million to build a complementary foundry, enhancing the domestic manufacturing base for quantum chips.
- Multiple Companies Benefit: Other firms like D-Wave, Rigetti, and Infleqtion each received up to $100 million to address specific engineering variables and modalities, further advancing the research and development of quantum computing.
- Investor Focus: While IBM and GlobalFoundries are publicly traded, quantum computing represents a small part of their overall business, prompting investors to be selective and consider pure-play quantum companies like D-Wave and Rigetti, or indirectly invest through Honeywell and Nvidia for quantum exposure.
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Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 18.410
Low
30.00
Averages
39.75
High
51.00
Current: 18.410
Low
30.00
Averages
39.75
High
51.00
About RGTI
Rigetti Computing, Inc. is a full-stack quantum computing company. The Company operates quantum computers over the cloud and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. It has developed a multi-chip quantum processor for scalable quantum computing systems. Through the Company’s Quantum Computing as a Service (QCaaS) platform, its machines can be integrated into any public, private or hybrid cloud. It is also engaged in the sale of quantum processing units (QPUs) and custom computing components, and development contracts and other services. Its QPUs contain fabricated silicon-based chips featuring superconducting qubits. The Company designs and manufactures its chips in-house at Fab-1, an integrated quantum device manufacturing facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Insider Selling Signals Caution in Quantum Computing Stocks
- Insider Trading Warning: Since June 18, 2024, executives at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold approximately $857 million in stock, indicating concerns about future market prospects that could undermine investor confidence.
- Net Selling Figures: IonQ reported a net selling of $454.1 million, Rigetti Computing $71.5 million, and D-Wave Quantum $331.1 million, reflecting a pessimistic outlook from insiders regarding the companies' future performance, which may lead to stock price volatility.
- Lack of Buying Signals: Over the past two years, insider purchases have been minimal, with IonQ at $2.25 million, D-Wave Quantum at just $1,795, and Rigetti with no purchases, indicating a lack of confidence among executives that could negatively impact market sentiment.
- Valuation Bubble Risk: While quantum computing companies show rapid growth potential, their price-to-sales ratios are in bubble territory, and historical data suggests that investors often overestimate the speed of technology adoption, potentially increasing future investment risks.
See More
Insider Trading Warning for Quantum Computing Stocks
- Insider Trading Trends: Over the past two years, insiders at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold nearly $857 million in stock, indicating a lack of confidence in the companies' futures, which may affect investor sentiment towards these highly valued stocks.
- Scarcity of Insider Buying: While IonQ has seen approximately $2.25 million in insider purchases, D-Wave Quantum has only recorded $1,795, and Rigetti has had no insider purchases at all, reflecting a cautious attitude among executives regarding the companies' prospects.
- Market Valuation Bubble: The price-to-sales ratios of quantum computing stocks are firmly in bubble territory, and although these companies have the potential for rapid growth in the coming years, the market often overestimates the speed of technology adoption, posing risks for investors.
- Investor Caution: Given the lack of insider buying, everyday investors should carefully consider investing in IonQ, especially since the Motley Fool's analyst team has identified ten other stocks with potential, excluding IonQ from their recommendations.
See More
Rigetti Computing Stock Volatility Analysis
- Stock Price Plunge: Rigetti Computing's stock fell sharply by 9.2% by 2:55 p.m. ET on Wednesday, reflecting the high volatility in the quantum computing market, despite earlier gains from government support.
- Options Trading Surge: According to StreetInsider.com, the call options purchased on Tuesday outnumbered puts by 10.4 to 1, indicating strong bullish sentiment among investors, but this may have led to excessive speculation in the short term.
- Government Support Outlook: President Trump's signed order aims to build a powerful quantum computer by 2029, presenting potential market opportunities for Rigetti; however, analysts warn that profitability may not be achieved until 2031, adding uncertainty to investments.
- Market Volatility Risks: The absence of negative news driving the stock's decline suggests that day traders opted to cash out due to a lack of further positive developments, highlighting the high-risk nature of quantum computing stocks that investors should approach with caution.
See More
U.S. Accelerates Quantum Computing Strategy with New Directives
- Quantum Computing Goals: The U.S. government has set a target to develop a quantum computer tailored for scientific research within two years and to roll out quantum sensors and networks within five years, aiming to enhance national research capabilities and technological competitiveness.
- Cybersecurity Upgrade: The second directive mandates federal departments to complete a full migration to quantum-resistant encryption protocols for high-value targets by 2031, addressing future national security threats and ensuring the security of critical data.
- Funding Support: This strategy is backed by a $2 billion government allocation aimed at strengthening local supply chains through collaboration with major tech companies and research labs, facilitating the commercialization of quantum technology.
- Positive Market Reaction: Following Trump's signing of the directives, shares of IONQ, QUBT, and IBM rose between 4% and 6% in after-hours trading, reflecting market optimism about the future developments in the quantum computing sector.
See More
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. Department of Commerce plans to invest up to $2 billion across nine quantum computing firms over the next three years, with Rigetti Computing set to receive $100 million in CHIPS Act funding aimed at advancing its superconducting quantum systems R&D.
- Strategic Significance: This funding not only lends credibility to Rigetti's technology but also aligns with national priorities in artificial intelligence, highlighting policymakers' recognition of quantum computing's importance for economic competitiveness and security applications.
- Market Reaction: While the government funding provides non-dilutive capital to Rigetti's balance sheet, the company currently has a market cap of approximately $7 billion with trailing twelve-month sales of only $10 million, resulting in a price-to-sales ratio nearing 700, indicating a high-risk, high-reward scenario.
- Future Outlook: Additional government funding could accelerate Rigetti's progress toward building scalable fault-tolerant quantum architectures, although quantum computing remains in a pre-commercial phase, suggesting meaningful revenue growth is still years away.
See More
U.S. Commerce Department Invests $2 Billion in Quantum Computing Firms
- Funding Support: The U.S. Department of Commerce plans to invest $2 billion over the next three years across nine quantum computing companies, with Rigetti Computing set to receive $100 million in CHIPS Act funding aimed at advancing its superconducting quantum systems R&D.
- Market Confidence: While government funding adds credibility to Rigetti's technology, its shares remain priced at historically high levels, with a market cap of approximately $7 billion and trailing twelve-month sales of only $10 million, resulting in a price-to-sales ratio nearing 700, indicating a high-risk, high-reward scenario.
- Strategic Importance: The selection of Rigetti as a funding recipient signals policymakers' confidence in the significance of quantum computing for economic competitiveness and security applications, and government involvement could accelerate breakthroughs in areas like drug discovery and financial services.
- Future Outlook: Although the funding may help Rigetti reduce reliance on dilutive equity raises, the company is still in its early stages, with meaningful revenue growth likely years away, prompting investors to carefully assess its current high valuation.
See More
Insider Selling Signals Caution in Quantum Computing Stocks
- Insider Trading Warning: Since June 18, 2024, executives at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold approximately $857 million in stock, indicating concerns about future market prospects that could undermine investor confidence.
- Net Selling Figures: IonQ reported a net selling of $454.1 million, Rigetti Computing $71.5 million, and D-Wave Quantum $331.1 million, reflecting a pessimistic outlook from insiders regarding the companies' future performance, which may lead to stock price volatility.
- Lack of Buying Signals: Over the past two years, insider purchases have been minimal, with IonQ at $2.25 million, D-Wave Quantum at just $1,795, and Rigetti with no purchases, indicating a lack of confidence among executives that could negatively impact market sentiment.
- Valuation Bubble Risk: While quantum computing companies show rapid growth potential, their price-to-sales ratios are in bubble territory, and historical data suggests that investors often overestimate the speed of technology adoption, potentially increasing future investment risks.
See More
Insider Trading Warning for Quantum Computing Stocks
- Insider Trading Trends: Over the past two years, insiders at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold nearly $857 million in stock, indicating a lack of confidence in the companies' futures, which may affect investor sentiment towards these highly valued stocks.
- Scarcity of Insider Buying: While IonQ has seen approximately $2.25 million in insider purchases, D-Wave Quantum has only recorded $1,795, and Rigetti has had no insider purchases at all, reflecting a cautious attitude among executives regarding the companies' prospects.
- Market Valuation Bubble: The price-to-sales ratios of quantum computing stocks are firmly in bubble territory, and although these companies have the potential for rapid growth in the coming years, the market often overestimates the speed of technology adoption, posing risks for investors.
- Investor Caution: Given the lack of insider buying, everyday investors should carefully consider investing in IonQ, especially since the Motley Fool's analyst team has identified ten other stocks with potential, excluding IonQ from their recommendations.
See More
Rigetti Computing Stock Volatility Analysis
- Stock Price Plunge: Rigetti Computing's stock fell sharply by 9.2% by 2:55 p.m. ET on Wednesday, reflecting the high volatility in the quantum computing market, despite earlier gains from government support.
- Options Trading Surge: According to StreetInsider.com, the call options purchased on Tuesday outnumbered puts by 10.4 to 1, indicating strong bullish sentiment among investors, but this may have led to excessive speculation in the short term.
- Government Support Outlook: President Trump's signed order aims to build a powerful quantum computer by 2029, presenting potential market opportunities for Rigetti; however, analysts warn that profitability may not be achieved until 2031, adding uncertainty to investments.
- Market Volatility Risks: The absence of negative news driving the stock's decline suggests that day traders opted to cash out due to a lack of further positive developments, highlighting the high-risk nature of quantum computing stocks that investors should approach with caution.
See More
U.S. Accelerates Quantum Computing Strategy with New Directives
- Quantum Computing Goals: The U.S. government has set a target to develop a quantum computer tailored for scientific research within two years and to roll out quantum sensors and networks within five years, aiming to enhance national research capabilities and technological competitiveness.
- Cybersecurity Upgrade: The second directive mandates federal departments to complete a full migration to quantum-resistant encryption protocols for high-value targets by 2031, addressing future national security threats and ensuring the security of critical data.
- Funding Support: This strategy is backed by a $2 billion government allocation aimed at strengthening local supply chains through collaboration with major tech companies and research labs, facilitating the commercialization of quantum technology.
- Positive Market Reaction: Following Trump's signing of the directives, shares of IONQ, QUBT, and IBM rose between 4% and 6% in after-hours trading, reflecting market optimism about the future developments in the quantum computing sector.
See More
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. Department of Commerce plans to invest up to $2 billion across nine quantum computing firms over the next three years, with Rigetti Computing set to receive $100 million in CHIPS Act funding aimed at advancing its superconducting quantum systems R&D.
- Strategic Significance: This funding not only lends credibility to Rigetti's technology but also aligns with national priorities in artificial intelligence, highlighting policymakers' recognition of quantum computing's importance for economic competitiveness and security applications.
- Market Reaction: While the government funding provides non-dilutive capital to Rigetti's balance sheet, the company currently has a market cap of approximately $7 billion with trailing twelve-month sales of only $10 million, resulting in a price-to-sales ratio nearing 700, indicating a high-risk, high-reward scenario.
- Future Outlook: Additional government funding could accelerate Rigetti's progress toward building scalable fault-tolerant quantum architectures, although quantum computing remains in a pre-commercial phase, suggesting meaningful revenue growth is still years away.
See More
U.S. Commerce Department Invests $2 Billion in Quantum Computing Firms
- Funding Support: The U.S. Department of Commerce plans to invest $2 billion over the next three years across nine quantum computing companies, with Rigetti Computing set to receive $100 million in CHIPS Act funding aimed at advancing its superconducting quantum systems R&D.
- Market Confidence: While government funding adds credibility to Rigetti's technology, its shares remain priced at historically high levels, with a market cap of approximately $7 billion and trailing twelve-month sales of only $10 million, resulting in a price-to-sales ratio nearing 700, indicating a high-risk, high-reward scenario.
- Strategic Importance: The selection of Rigetti as a funding recipient signals policymakers' confidence in the significance of quantum computing for economic competitiveness and security applications, and government involvement could accelerate breakthroughs in areas like drug discovery and financial services.
- Future Outlook: Although the funding may help Rigetti reduce reliance on dilutive equity raises, the company is still in its early stages, with meaningful revenue growth likely years away, prompting investors to carefully assess its current high valuation.
See More
