Why Did QUBT Jump in Premarket? U.S. Government Might Take Equity Stake

Quantum Computing Inc. (QUBT) shares surged in premarket trading on Thursday, October 23, 2025, following a Wall Street Journal report that the Trump administration is in talks to take equity stakes in several quantum computing firms in exchange for federal funding.

The stock jumped to $16.36 in premarket trading at 7:41 AM EDT, representing a gain of $1.49 or 10.02% from its previous close of $14.87. This comes amid broader investor enthusiasm for quantum computing stocks as the U.S. government signals its commitment to securing leadership in this critical technology sector.

Government Negotiations Spark Sector-Wide Quantum Stock Rally

According to the Wall Street Journal report, Quantum Computing Inc. is among several firms considering arrangements that would give the Commerce Department equity stakes as part of federal funding agreements. The companies are reportedly seeking a minimum of $10 million each from Washington, with Deputy Commerce Secretary Paul Dabbar leading the negotiations.

Other firms involved in similar discussions include IONQ, Rigetti Computing, D-Wave Quantum, and Atom Computing, all of which saw their shares surge between 12% and 16% in premarket trading.

The initiative represents a significant expansion of the Trump administration’s strategy to take ownership stakes in sectors deemed critical to national security and technological advancement. This approach mirrors the government’s previous move in August 2025, when it took a nearly 10% stake in Intel by converting approximately $9 billion in grants into equity.

The quantum computing discussions would mark one of Washington’s first major investments specifically in this emerging technology sector, which is considered vital for future breakthroughs in materials science, chemistry, and drug discovery.

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Quantum Market Growth Outlook Fuels Renewed Investor Optimism

Quantum Computing Inc. closed at $14.87 on October 22, 2025, down $1.13 or 7.06% from the previous session, before rebounding sharply in premarket trading to $16.36. The stock has experienced significant volatility, with a 52-week range spanning from $1.03 to $27.15, and currently trades with a market capitalization of $3.33 billion.

Despite its impressive year-to-date performance, the company faces substantial financial challenges, reporting a negative profit margin, a diluted EPS of -$0.74, and net income losses of $76.41 million. The company’s annual revenue stands at just $263,000, resulting in an extraordinarily high price-to-sales ratio of 9,070x.

The quantum computing market is projected to grow substantially in the coming years, with Bank of America analysts estimating the market could reach approximately $4 billion by the beginning of the next decade, up from around $300 million in 2024.

McKinsey has offered even more optimistic projections, suggesting the quantum technology market could reach $100 billion within a decade. However, analysts note that significant technical impediments remain, as existing quantum computers must dedicate substantial computing power to error correction, making them not yet faster than classical computers for most practical applications.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.