Yesterday, as you've probably heard, The Wall Street Journal reported on a Trump Administration plan to award $2 billion in grants to nine quantum computing companies -- recent SPAC IPO Infleqtion (INFQ +8.57%) among them -- and to take equity stakes in the companies. Infleqtion started moving one day before the announcement, then rocketed higher yesterday -- and higher again today.
Up 18.7% through 11:30 a.m. ET, Infleqtion shares have gained 64% in just three days of trading, and investors are wondering: Is any price too high for this quantum computing stock?
Image source: Getty Images.
Now it's official
Shortly after WSJ story broke, the U.S. Commerce Department confirmed that not only does it plan to award grants, but it has in fact already signed letters of intent to do so.
Operating under the CHIPS and Science Act, Commerce will "support and accelerate critical research and manufacturing of technologies for the quantum ecosystem to ensure continued United States leadership and national security." Two quantum foundries, Globalfoundries (GFS +5.73%) and International Business Machines (IBM +0.63%), will receive $375 million and $1 billion, respectively.
Infleqtion and five others will receive $100 million apiece, and a ninth company will receive $38 million. Each of the seven non-foundry recipients will focus on specific technologies needed to build quantum computers. Infleqtion in particular will focus on optical systems, readouts, and error correction in neutral-atom-based quantum computers.
NYSE: INFQ
Key Data Points
What does this mean for Infleqtion?
Will $100 million suffice to make Infleqtion stock a winner? It sure can't hurt. One of the smaller and more parsimonious quantum stocks, Infleqtion has been lowering its cash burn rate steadily, and consumed barely $26 million last year.
$100 million in government cash gives Infleqtion nearly four more years of runway, lowering the risk on an otherwise very risky bet.
