Has the White House ‘stock guru’ struck again? U.S. quantum technology stocks surge collectively amid rumors that Trump is considering investment.

Cailian News, October 24th, edited by Liu Rui — On Thursday (US Eastern Time), US quantum computing tech stocks surged collectively. The reason behind this appears to be merely a rumor about an investment plan from the Trump administration — this seems to further prove that the reputation of ‘White House stock guru’ Trump is well-deserved.

Is the ‘White House stock guru’ exerting influence again?

On Thursday (US Eastern Time), a report by The Wall Street Journal stated that the US government was in talks with companies developing quantum computing technology, discussing equity transactions in exchange for government funding.

The report mentioned that several quantum companies were negotiating equity deals with the US Department of Commerce in exchange for government funding.

Following the news, US quantum technology-related stocks surged at the opening on Thursday, with the rally continuing to expand.

Shares of Quantum Computing Inc., Rigetti Computing, IonQ, and D-Wave Quantum surged at one point during Thursday’s trading session by 14%, 16%, 13%, and 23% respectively.

Did the White House denial statement spark more speculation?

Despite a White House statement denying the report around noon on Thursday (US Eastern Time), the upward trend of related concept stocks continued.

A White House spokesperson stated in a release: ‘The Department of Commerce is not currently in negotiations with quantum computing companies regarding equity.’

However, this brief statement did not dampen stock investors’ enthusiasm for quantum computing stocks; instead, it sparked further speculation: the phrase ‘currently’ might imply that negotiations could take place later, while the term ‘equity’ could suggest a different deal structure.

Adding fuel to the fire of investor enthusiasm was Rigetti Computing’s response to the matter. In its statement, the company said:

“We are in ongoing discussions with the U.S. government regarding financing opportunities. If the U.S. does not lead in supporting these breakthroughs, other countries will, posing a significant risk to our national security.”

Is the Trump administration really going to invest in quantum technology?

This year, the Trump administration has already invested in rare earth metals and mining companies as well as large hardware manufacturers like Intel. Therefore, it seems unsurprising that quantum technology could become central to discussions on another area of technological advancement where the U.S. seeks dominance.

Although quantum technology is just beginning to transition from the laboratory to the real world, its complex technology is being touted for numerous potential applications.

Currently, Google is actively researching this technology, claiming that it can help achieve various goals such as accelerating medical diagnoses and developing new materials. This week, the tech giant announced that its quantum computer can run algorithms on a single piece of hardware 13,000 times faster than the fastest ‘traditional supercomputer.’

Meanwhile, last month, IBM announced a major breakthrough by completing the first bond trade powered by quantum technology. The company also demonstrated progress in using quantum technology for portfolio management, showcasing its potential to disrupt traditional investment functions.

However, in the aforementioned Wall Street Journal report, IBM was not among the companies under consideration for equity deal negotiations by the White House. The company’s stock fell by as much as 8% on Thursday.