Over the past 10 days, the most prominent quantum-computing ETFs, Defiance Quantum ETF QTUM and WisdomTree Quantum Computing Fund WQTM, have gained around 7-8%. The rally followed the U.S. Department of Commerce's (DoC) announcement of letters of intent with nine quantum-related companies for approximately $2.01 billion in proposed CHIPS and Science Act incentives.
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This proposed funding package represents one of the most significant federal investments in quantum computing to date, reflecting Washington's growing efforts to maintain U.S. leadership in this space. The government currently views this as a strategically important initiative for national security, technological resilience and future industrial competitiveness.
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Following this, investor enthusiasm for pure-play quantum stocks surged as market participants reassessed the sector's growth prospects and funding outlook. The proposed federal support has boosted confidence in the industry's long-term potential, driving sharp gains across several quantum names, with D-Wave Quantum QBTS and Honeywell’s HON Quantinuum emerging as key beneficiaries of the initiative.
Government Support Accelerates Quantum Commercialization
Quantum computing has steadily moved up the U.S. strategic agenda since the passage of the National Quantum Initiative Act in 2018, which established a coordinated federal framework for advancing quantum research and development. The latest funding push builds on those efforts and signals a growing emphasis on accelerating commercialization and domestic manufacturing capabilities.
Reflecting the sector's growing momentum, IBM IBM subsequently announced plans on May 28 to invest more than $10 billion in quantum computing through 2029. Notably, IBM is also slated to receive up to $1 billion under the proposed quantum funding program for its quantum foundry project.
2 Pureplays in Focus
Stock Comparison Since Doc’s Announcement: QBTS, HON
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D-Wave: It is one of the nine names in the letters of intent and appears well-positioned to benefit from the DoC initiative. According to the company, the investment would support the expansion of its quantum computing technologies and help accelerate the development of U.S.-based quantum infrastructure. Given D-Wave's relatively modest operating scale, the proposed funding could meaningfully strengthen its balance sheet, support R&D efforts and enhance its ability to commercialize both annealing and gate-model quantum computing systems.
Following the announcement, shares of QBTS have risen 17.1% over the past 10 days. This Zacks Rank #3 (Hold) stock is expected to report earnings growth of 73.9% in 2026.
Sales and EPS Growth Rates (Y/Y %)
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Quantinuum (Honeywell): Quantinuum, majority-owned by Honeywell, is also expected to receive up to $100 million under the proposed program. The company said the funding would support the development of its trapped-ion quantum-computing platform and strengthen domestic quantum capabilities. As one of the industry's most advanced quantum-computing companies, Quantinuum is already generating commercial revenues and expanding enterprise adoption. The additional federal backing could help accelerate product development, scale manufacturing capabilities and further solidify its leadership position in the emerging quantum-computing market.
Honeywell has gained 6.3% during this period. This Zacks Rank #3 stock is expected to report earnings growth of 7.7% in 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sales and EPS Growth Rates (Y/Y %)
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Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
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International Business Machines Corporation (IBM): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
Defiance Quantum ETF (QTUM): ETF Research Reports
D-Wave Quantum Inc. (QBTS): Free Stock Analysis Report
WisdomTree Quantum Computing Fund (WQTM): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).