D-Wave Quantum Inc. shares surged 8.4% to $29.79 in New York trading on Thursday, as investors piled back into quantum-computing stocks following news of a proposed $100 million funding agreement under the CHIPS and Science Act. The stock hit an intraday high of $30.21 earlier, with approximately 34.6 million shares changing hands. The company’s market capitalization stood near $11 billion.
The rally extended across the quantum sector, with IonQ climbing 6.7%, Rigetti Computing adding 8.3%, and Quantum Computing Inc. rising 6.4%. These gains outpaced broader market benchmarks, as the SPDR S&P 500 ETF gained 0.5% and the Invesco QQQ Trust rose 0.9%.
CHIPS Act Funding and Government Backing
D-Wave announced last week that it had signed a letter of intent for a proposed $100 million funding package from the U.S. Department of Commerce under the CHIPS and Science Act. The agreement would see D-Wave issue $100 million in common stock to the Department after the final award is signed. CEO Alan Baratz described the proposal as "a transformative moment" for D-Wave, quantum computing, and the United States, emphasizing that U.S. government funding would accelerate the country’s lead in quantum technology.
Additionally, D-Wave secured second-year funding for a Microelectronics Commons project focused on superconducting qubits, the core units in some quantum computers. The project, which will be carried out at Quantum Circuits—a company D-Wave acquired—aims to advance scalable fabrication, moving quantum hardware production "from lab-to-fab," as noted by Chief Scientist Rob Schoelkopf.
Quantum Supremacy Defense
D-Wave also defended its earlier quantum-supremacy results, countering claims that recent classical-computing advances had challenged its achievement. Quantum supremacy refers to a quantum computer performing a task that a classical system cannot practically handle. Baratz stated that D-Wave’s test "continues to hold up under careful scientific scrutiny." Chief Development Officer Trevor Lanting added that some classical approaches still fail to solve the specific problem types in D-Wave’s research.
Financial Performance and Risks
While D-Wave is beginning to see commercial traction, it remains early stage. The company reported $33.4 million in bookings for the first quarter—a nearly 2,000% jump from a year ago—though revenue dropped 81% to $2.9 million, largely due to a system sale in the prior-year period. The company continues to post negative earnings per share.
Investors face significant risks. The Commerce Department deal is still pending final paperwork, and the planned stock issuance would dilute existing shareholders. A Securities and Exchange Commission Form 4 filed Wednesday showed CFO John Markovich sold 328,752 shares on May 22 at a weighted average price of $27.7037. He retains 1.44 million shares after the sale.
Outlook and Investor Day
D-Wave is scheduled to host its first investor day at the New York Stock Exchange on June 1, where it plans to provide more details on its technology roadmap, commercial momentum, and long-term strategy. With the stock moving rapidly, analysts expect investors to demand concrete targets rather than vague projections.
