IBM and small-cap quantum names, including IonQ, D-Wave Quantum, Rigetti Computing, Infleqtion, and other peers, are surging in New York premarket trading after a Wall Street Journal report said the Trump administration is preparing to award $2 billion in CHIPS Act grants to nine quantum-computing companies.
IBM is set to receive half of the $2 billion tranche, or about $1 billion, as the large-cap leader in the race to build quantum computing systems that could revolutionize national security, accelerate scientific discovery, and deliver a range of other economic benefits.
WSJ, citing the Commerce Department, outlined the companies expected to receive funding from the 2022 Chips and Science Act:
The department has agreed to give $1 billion of the package to IBM, a leader in the race to build computers that use quantum mechanics to solve problems much faster than traditional supercomputers.
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IBM and other companies are working to develop specialized chips for quantum computing, a focus for the government in its bid to spur domestic supply chains. Chip maker GlobalFoundries is receiving $375 million in funding.
The rest of the firms are expected to receive $100 million, except for startup Diraq, which is slated to get $38 million.
A slew of companies pursuing various approaches to quantum are slated to be awarded funds, including publicly traded firms D-Wave Quantum, Rigetti Computing and Infleqtion.
Commerce Secretary Howard Lutnick's strategy of using federal funding in exchange for equity stakes will also apply to the quantum computing companies listed above. This is similar to a series of other deals, especially in the rare earths space, including rare-earth magnet maker Vulcan Elements and mining company MP Materials.
US TO GRANT $2B TO 9 QUANTUM COMPUTING FIRMS, TAKE STAKES: WSJ
— zerohedge (@zerohedge) May 21, 2026
Among companies receiving funds:
IBM: $1BN
GFS: $375MM
QBTS: $100MM
RGTI: $100MM
INFQ: $100MM
Lutnick stated, "The Trump administration is leading the world into a new era of American innovation."
In premarket trading, IBM rose 6%, D-Wave Quantum soared 19%, Rigetti Computing jumped 15%, and IONQ up 9%.
Quantum computing benefits:
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National security: Quantum systems could eventually break parts of today's encryption, forcing governments, banks, defense firms, and cloud providers to move toward post-quantum cybersecurity. It also has potential uses in secure communications, advanced sensing, navigation, and intelligence systems.
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AI and scientific discovery: Quantum computing could accelerate complex simulations used in materials science, drug discovery, chemistry, energy systems, and advanced manufacturing. Combined with AI, it could shorten research cycles that currently take years.
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Semiconductors and supply chains: The race is not only about software. It requires specialized chips, cryogenics, photonics, control systems, and advanced manufacturing capacity, making it a strategic industrial-policy priority similar to AI chips.
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Finance and logistics: Quantum algorithms could improve optimization problems, including portfolio modeling, risk analysis, routing, supply-chain planning, and energy-grid management.
"Everybody is excited about quantum because it is the next big thing. A lot of the expectations and hopes have yet to be realized," said Dana Goward, president of the Resilient Navigation and Timing Foundation.
It is important to note that quantum computing remains in the early stages, is expensive, and is technically challenging.
Nvidia CEO Jensen Huang recently said that "very useful" standalone quantum computers are still roughly 15 to 20 years away.
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