Top 2 Quantum Stocks to Watch as the US Government Bets on the Industry’s Future

Why are investors excited about quantum stocks? Well, the US government is reportedly in talks to acquire equity stakes in several quantum computing firms, including IonQ, Rigetti, and D-Wave, as part of a new federal funding initiative. Under the proposed arrangements, each company could receive around USD 10 million in support. The move highlights the Trump administration’s growing focus on securing leadership in critical technologies, with the view that taxpayer-funded programs should also allow the government to participate in potential upside.

A similar approach has already been taken with Intel, where nearly USD 9 billion in prior grants were converted into equity, giving the US government close to a 10% ownership stake and making it Intel’s largest shareholder. Comparable agreements have also been made in the rare-earth and lithium sectors, reflecting a broader strategy to strengthen national control and long-term returns in strategically important industries.

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Google’s New ‘Willow’ Quantum Chip Marks a Breakthrough in Error Correction and Stability

One of the most promising long-term opportunities in quantum computing may come from a familiar name (Google). The company recently unveiled its new quantum processor, Willow, an upgraded version of its earlier Sycamore chip. Willow features 105 qubits, up from 72 on Sycamore, and has achieved a key milestone in quantum error correction. The processor’s logical qubits lasted more than twice as long as individual ones, with an error rate of roughly 1 in 1,000. While still higher than classical computing standards, it marks a major leap forward in quantum stability and scalability.

Google recently demonstrated a major breakthrough in quantum computing using its Willow processor. The company ran a complex algorithm on Willow and repeated the same task across comparable platforms to benchmark performance. The results were striking. Willow completed the computation roughly 13,000 times faster than the most advanced classical supercomputers.

According to Google, this experiment provides strong evidence that its processors can now outperform classical systems on specific, real-world problems. It marks a significant milestone toward quantum advantage, where quantum machines deliver practical benefits beyond what traditional computers can achieve.

For investors, Google’s strong balance sheet and substantial cash flow make it one of the most credible players in this emerging field. Gaining exposure to a financially robust company that is simultaneously delivering technological breakthroughs offers a compelling way to participate in the early stages of the QTUM computing revolution.

D-Wave Quantum Attracts Billionaire Backing Amid Growing Optimism in Quantum Computing

D-Wave Quantum (NYSE: QBTS) is another stock which has recently attracted significant attention from prominent hedge funds and billionaire investors. During the second quarter, Paul Tudor Jones acquired approximately 870,000 shares, Ken Griffin’s Citadel Advisors added around 84,000 shares, and Israel Englander’s Millennium Management increased its position by nearly 950%, now holding more than 380,000 shares. This level of institutional interest has positioned D-Wave as one of the more closely watched names in this space.

However, investors should also consider the risks. D-Wave remains far from profitability, and at current valuations, much of its future success appears to be priced into the stock. Quantum computing is still in its early stages, and challenges such as high error rates and the difficulty of maintaining stable qubits could delay commercial scalability.

Despite these uncertainties, optimism persists. Roth Capital recently raised its price target on D-Wave to USD 50, suggesting potential upside of about 65% from current levels. The company’s strategic partnerships with Lockheed Martin and NEC, alongside growing adoption of its Leap cloud platform, demonstrate that D-Wave is making meaningful progress toward commercial applications. For investors, the opportunity lies in balancing the promise of breakthrough technology with the inherent risks of an early-stage industry.