Quantum computing is often considered a speculative field, since those systems are still primarily used for niche government and research projects rather than mainstream computing applications. Quantum systems are much more powerful than classical computers, but they're also bigger, pricier, consume more power, and make more mistakes.
But from 2025 to 2030, Grand View Research expects the global quantum computing market to expand at a 20.5% CAGR as smaller, more scalable, and more accurate systems hit the market. They could also be deployed for a broader range of purposes, including processing AI tasks, streamlining supply chains, developing new drugs, and strengthening cybersecurity services.
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That's why it wasn't surprising when the U.S. government recently ramped up its investments in the quantum computing market, sending many of those stocks soaring. On May 21, the U.S. Department of Commerce said it had signed nine letters of intent to provide $2.01 billion in federal incentives under the CHIPS and Science Act to support a portfolio of quantum computing companies. Let's see which companies will profit from those fresh government investments, and why they imply the growth of the quantum computing market is still an underrated tech trend right now.
Which nine companies will benefit from those investments?
The Department of Commerce has earmarked $1 billion for IBM (IBM +0.34%) and $375 million for GlobalFoundries (GS +0.87%) to build new domestic quantum computing foundries.
NYSE: IBM
Key Data Points
Those investments could breathe fresh life into both companies. IBM is expanding its hybrid cloud and AI businesses to offset the slower growth of its older software and hardware businesses, and the expansion of its quantum computing business -- which has already deployed over 85 quantum systems -- complements that diversification. GlobalFoundries, one of the world's biggest foundries, gave up on keeping pace with TSMC and Samsung in the process race in 2018, but the creation of a quantum foundry could diversify its business away from its more mature mobile, auto, aerospace, and data center markets.
The Department of Commerce will also set aside up to $100 million per company for Atom Computing, D-Wave, Infleqtion, PsiQuantum, Quantinuum, and Rigetti. It will invest up to $38 million in Diraq. By spreading its bets across these companies -- many of which compete against each other with different types of quantum processing technology -- the U.S. likely hopes one of these speculative players will rise to the top and drive the quantum market to expand out of its niche.
The quantum computing market remains speculative, but the Department of Commerce's investments in these nine companies could attract more retail and institutional investors. Therefore, it might be smart to nibble on some of these stocks before the bulls rush in.
