Stock Markets May 22, 2026 12:25 PM

D-Wave Quantum Stock Jumps Again as Federal Funding Pact Bolsters Sector Momentum

Midday surge follows a Letter of Intent with the U.S. Department of Commerce and a wave of sector-wide gains tied to proposed federal grants

By Sofia Navarro QBTS

D-Wave Quantum's shares climbed sharply, rising 20.7% to $31.08 in mid-day trading as investors reacted to a Letter of Intent for $100 million in proposed funding from the U.S. Department of Commerce under the CHIPS and Science Act. The move has amplified gains across the quantum computing sector amid record bookings and heightened market enthusiasm, even as revenue and execution risks remain.

D-Wave Quantum Stock Jumps Again as Federal Funding Pact Bolsters Sector Momentum
QBTS

Key Points

  • D-Wave signed a Letter of Intent with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act, with the company set to issue $100 million in common stock to the Department.
  • Total bookings for D-Wave surged nearly 2,000% to $33.4 million, helped by a $10 million Quantum Computing-as-a-Service deal with a Fortune 100 company, even as recognized revenue fell to $2.9 million in early 2026.
  • The funding announcement catalyzed sector-wide gains: Rigetti, D-Wave, and Infleqtion rose more than 30% in a session, adding about $4.9 billion in combined market value, supported by a constructive broad-market environment.

D-Wave Quantum Inc saw its stock spike in intraday trading, jumping 20.7% to $31.08 as investors responded to news that the company has signed a Letter of Intent with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act. As part of the arrangement, D-Wave would issue $100 million in common stock to the Department of Commerce.

The proposed federal backing is part of a broader program that was described as involving $2 billion in grants to nine quantum computing companies, together with U.S. government equity stakes in each. Market movement in D-Wave shares accelerated even before the formal announcement and has continued upward following the disclosure.

Company officials said the planned funding would support development of D-Wave’s superconducting annealing and gate-model technologies at its U.S. research and development sites. That government engagement has arrived at a time of notable shifts in the company's reported business metrics.

On the revenue side, recognized revenue declined to $2.9 million in early 2026. By contrast, total bookings surged almost 2,000% to a record $33.4 million. That bookings jump was driven in part by a $10 million Quantum Computing-as-a-Service agreement with a Fortune 100 company. Analysts covering the stock show an average 12-month price target of $35.17, with 13 analysts recommending a buy and none suggesting a sell.


The ripple effects extended beyond D-Wave. Shares of Rigetti Computing, D-Wave Quantum, and Infleqtion each rose by more than 30% on Thursday, adding nearly $4.9 billion in combined market value in one session. Those stocks climbed further in overnight trading after the Trump administration announced $100 million grants for each company.

Market participants and policymakers have framed the funding approach as an indication that quantum computing is considered strategically important for both economic and national security priorities. The broader market provided a supportive backdrop during the session, with the S&P 500 up 0.6%, the Dow Jones rising 0.8%, and the NASDAQ gaining 0.6%.

Over a short window, D-Wave’s shares have experienced extraordinary momentum, gaining 66% across three days of trading. Market observers attribute the rapid appreciation to the convergence of direct federal support, a sector-wide re-evaluation of quantum assets, and a favorable macro market environment.

Nevertheless, some traders warned that the valuation expansion appeared outsized relative to the scale of the grants. They highlighted persistent risks, including the early-stage nature of the technology, unproven commercial viability at scale, and elevated short interest in the stock. These factors suggest that the stock's path over the near term will depend on whether D-Wave can translate government-backed momentum into measurable commercial progress.

For now, the market has demonstrated strong appetite for companies in the quantum computing space following the funding announcements, but the balance between renewed investor enthusiasm and fundamental business developments will be crucial to monitor in the coming weeks and months.

Risks

  • Valuation concerns: some traders view the rapid rise in stock prices as disproportionate to the size of the grants, creating the risk of sharp corrections in technology and small-cap segments of the market.
  • Execution and commercialization risk: D-Wave faces early-stage development challenges and unproven commercial viability that could hinder its ability to convert government support into sustainable revenue growth, impacting the quantum computing sector.
  • Market dynamics: elevated short interest and reliance on continued positive sentiment mean the stock could be sensitive to changes in investor confidence or broader market conditions, affecting technology and capital markets.

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