U.S. lawmakers are pushing to spend much more on quantum computing as the race with China becomes more serious. As a result, shares of Rigetti Computing (RGTI), D-Wave Quantum (QBTS), Quantum Computing Inc (QUBT), and IonQ (IONQ) jumped in Friday’s trading. Interestingly, the House is expected to discuss a defense bill that would increase yearly military spending on quantum technology by 68% to $567 million.
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Double your QBTS exposure with Tradr's QBTXAt the same time, the Trump administration has already announced plans to invest more than $2 billion directly into the industry. Washington is paying more attention because quantum computers could eventually solve certain problems much faster than today’s computers. That could make them useful in areas such as drug research and finance.
However, the same technology could also create a major security problem because powerful quantum computers may one day be able to break some of the encryption that protects banks and government information.
Because of that risk, the U.S. government is treating quantum computing as both a business opportunity and a national-security issue. In fact, President Donald Trump signed an executive order in June to speed up quantum research. He also signed a separate order requiring federal agencies to prepare their computer systems for possible quantum-based cyberattacks in the future.
China Is Spending Heavily Too
Meanwhile, China is spending heavily too. The country has created a $10 billion National Laboratory for Quantum Information Sciences. Europe and the UK have also committed nearly three times as much public money to quantum technology as the U.S., according to Bloomberg, which is adding more pressure on Washington to move faster.
As a result, quantum companies are getting more attention from policymakers. Still, investors remain cautious. Several pure-play quantum stocks have fallen sharply this year as excitement around the technology cooled down. However, more government funding could become an important catalyst.
Which Quantum Computing Stock Is the Better Buy?
Turning to Wall Street, out of the stocks mentioned above, analysts think that QUBT stock has the most room to run. In fact, QUBT’s price target of $16 per share implies 74.5% upside potential. (See QUBT Stock Forecast).
