Quantum Computing Soars 19% On US Govt Quantum Backing

Quantum Computing (QUBT) rallied for a second day on Thursday, jumping 19.35 percent to finish at $11.41 apiece, after earning the backing of the US government for the development of supercomputers in a bid to solve some of the world’s most pressing problems.

Under the CHIPS and Science Act, the US Department of Commerce is shelling out over $2 billion in federal incentives to support a portfolio of quantum companies in accelerating the development of utility-scale, fault-tolerant quantum computers.

Of the $2 billion, nine companies are set to receive a slice of the total amount, with IBM (IBM) taking home the largest chunk, at $1 billion, followed by GlobalFoundries (GFS) with $375 million. Other companies included D-Wave (QBTS), Rigetti (RGTI), Atom, Diraq, Infleqtion, PsiQuantum, and Quantinuum.

While Quantum Computing Inc. was not a direct beneficiary, the US government’s initiative sparked a broader optimism for the overall quantum sector, having been seen as an industry practically useful decades away.

In other news, Quantum Computing Inc. reported a dismal earnings performance in the first quarter of the year, having incurred a $4.05 million net loss, or a reversal of the $16.98 million net income in the same period last year.

Total revenues markedly jumped by 9,364 percent to $3.69 million from only $39,000 year-on-year.

While we acknowledge the risk and potential of QUBT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.