D-Wave Quantum (QBTS) stock is having a big day. The company announced it signed a Letter of Intent with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act. QBTS jumped more than 22% on the news.
The stock had already moved sharply before the opening bell, rising 17.9% in pre-market trading once the announcement dropped.
The $100 million would be directed at D-Wave’s R&D sites in Florida, Connecticut, and Canada. The goal is to speed up development of its next-generation quantum computers.
Specifically, D-Wave is targeting a 100,000-qubit annealing system and a 10,000-qubit gate-model system. Both represent major leaps from where the technology stands today.
There’s a catch worth noting: the deal isn’t final. The funding is still subject to definitive award documents being executed. Until that happens, the LOI is a commitment in principle, not a done deal.
As part of the arrangement, the U.S. Department of Commerce would receive an equity stake in D-Wave equal to the value of the funding. That means dilution for existing stockholders once the stock is issued.
D-Wave isn’t the only company in the mix. The $100 million is part of a broader $2 billion package from the Trump administration targeting nine quantum computing companies.
IBM leads the pack with $1 billion. GlobalFoundries is set to receive $375 million. Rigetti Computing and Infleqtion are each slated for $100 million, the same as D-Wave. Startup Diraq is in line for $38 million.
The sector-wide nature of the awards sparked a sympathy rally across quantum computing names, lifting the broader group alongside QBTS.
The market backdrop helped too. On the day of the announcement, the S&P 500 was up 1.1%, the Dow Jones gained 1.3%, and the Nasdaq climbed 1.5%, giving high-beta tech names an extra boost.
D-Wave’s annealing quantum computers are already commercially available today. The gate-model system is the newer technology, expected to reach commercial viability at 10,000 physical qubits.
The company currently serves more than 100 commercial, government, and research customers through on-premises systems and its Leap cloud service.
D-Wave also filed a Form 8-K with the SEC on the same day. A Form 144 was filed on May 20, indicating a potential sale of restricted securities by an insider. The company has previously characterized similar filings as routine tax-related transactions rather than discretionary selling.
The most recent analyst rating on QBTS carries a Buy rating with a $43.00 price target. The current market cap stands at approximately $7.14 billion.
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