"American Stock Market Tycoon" Trump Lifts the Entire Quantum Computing Sector

Original｜Odaily Planet Daily (@OdailyChina)

Author｜Wenser (@wenser 2010 )

In August last year, driven by Trump, the U.S. government completed a capital conversion through the CHIPS Act, directly purchasing nearly 10% of Intel's newly issued common shares (about 433.3 million shares) at $20.47 per share. At that time, the value was less than $9 billion. Less than a year later, in early May, as Intel's stock price hit an all-time high, the total value of those shares had reached $54.1 billion, appreciating by over $45 billion in just seven months.

Referring to this, Trump proudly posted, "I made $45 billion for the U.S. in the last 8 months."

As a major capital operator known for "posting and moving the U.S. stock market" on a whim, Trump has an outsized influence on the rise and fall of U.S. stocks. Recently, he has begun his performance again—providing a total of $2 billion in funding to 9 quantum computing companies through the U.S. Department of Commerce in exchange for equity. Odaily Planet Daily will provide a brief analysis of this in the following article.

U.S. Government Strikes Again, Investing $2 Billion in the Quantum Computing Track

On May 21, the Trump administration announced that it would provide a total of $2 billion in funding to 9 quantum computing companies through the U.S. Department of Commerce in exchange for partial equity. The specific fund allocation plan is as follows:

• $1 billion will be awarded to IBM (IBM) for the operations and development of its independent subsidiary, Anderon;
• $375 million allocated to chip manufacturer GlobalFoundries (GFS);
• Public companies like D-Wave (QBTS), Infleqtion (INFQ), and Rigetti (RGTI) will each receive $100 million;
• Private companies like Atom Computing, PsiQuantum, and Quantinuum (Honeywell-HON, independent subsidiary) will each receive $100 million;
• Startup Diraq is expected to receive $38 million.

According to official document information, this is part of the Trump administration's "activist investor" industrial policy, with funds sourced from the R&D appropriations of the 2022 CHIPS and Science Act. The Department of Commerce emphasized that this is a "portfolio" strategy covering two quantum wafer foundries and seven quantum computing companies, targeting multiple quantum modalities such as neutral atoms, silicon spin, superconducting, photonics, and trapped ions, to address key engineering bottlenecks including device repeatability, error rates, optical complexity, and cryogenic system integration.

On the day of the announcement, U.S. stockquantum computing sectorsurged sharply in early trading, with D-Wave Quantum up 16%, Rigetti Computing up 14%, Infleqtion stock up 25%, Quantum Computing up 9%, and IonQ up 3.1%.

Interestingly, among these companies receiving funds, only GlobalFoundries Inc. (GFS) disclosed an equity exchange ratio of approximately 1%. The other companies, whether public or private, involved minority non-controlling stakes, with specific ratios not yet public. The final ratios will be disclosed in SEC filings after formal agreements are signed.

Capital Operations Under the "America First" Strategy

A closer look at this "investment-for-equity" operation reveals it is still conducted under the Trump administration's "America First" strategy.

Previously, the U.S. government's investments in Intel (INTC), the only full-chain U.S. rare earth producer MP Materials (MP), Trilogy Metals (TMQ), Lithium Americas (LAC), and U.S. Steel were also strategic measures to maintain the competitive advantage of the domestic semiconductor industry chain.

Especially regarding the nearly $9 billion investment in Intel, the Trump administration stated that it was to support advanced semiconductor manufacturing on U.S. soil and reduce dependence on TSMC. Therefore, the U.S. government's shareholding is a passive holding, with no board seats, no involvement in the company's daily operations or management, and most matters follow the board's voting results.

However, the U.S. government's "equity investment" is not just financial support; it also includes endorsement and multiple policy supports (e.g., export licenses, tariff protection). Previously, after Intel received U.S. government funding, it secured strong backing from U.S. Commerce Secretary Howard Lutnick. Over the past year, he met multiple times with Apple CEO Tim Cook, Tesla CEO Elon Musk, and Nvidia CEO Jensen Huang, persuading them to collaborate with Intel. With Apple on board, Intel has now established partnerships with all three of these companies.

Shift in Operational Thinking Under the CHIPS and Science Act: From Grants to Equity Exchanges

The $2 billion investment in quantum computing companies is backed by the CHIPS and Science Act, a landmark bipartisan bill enacted by the U.S. government in 2022. Officially titled the "CHIPS and Science Act of 2022," the act authorizes approximately $280 billion in cumulative investment over 10 years to support semiconductor industry development, basic science, and technology R&D. Its primary goal is to revitalize U.S. semiconductor manufacturing through massive investment, enhance scientific research and innovation capabilities, and compete with other countries in high-tech fields.

Unlike the grant or pure subsidy model under the Biden administration, the Trump administration's operational model is the aforementioned "activist investor" model—turning funding into minority non-controlling equity stakes. As of May this year, the act has attracted over $645 billion in private investment in the semiconductor manufacturing sector, with over 140 projects and the creation of 525,000 new jobs.

It must be said that in addition to personally pushing stocks like Dell (DELL), Micron (MU), and Palantir (PLTR), Trump is also using the U.S. government and other departments to fuel the U.S. stock market boom. It's no wonder he often boasts that "The U.S. stock market all-time highs are mainly because of me."

Additionally, it's worth noting that a previous U.S. Department of Commerce investment announcement stated, "The CHIPS Research and Development Office continues to solicit proposals from eligible applicants regarding research, prototyping, and commercial solutions for microelectronics technologies in the United States. Eligible applicants should submit proposals via www.grants.gov under announcement 2025-NIST-CHIPS-CRDO-01." In other words, the U.S. government's "investment door" remains open. More information and funding announcements can be found at official sources.

Of course, the U.S. government invests in a wide range of companies, including sectors such as electrical equipment, rare earths and other critical minerals, lithium batteries and other new energy sources, medical supplies, and communication infrastructure. Examples include Westinghouse, Lithium Americas, Trilogy Metals, USA Rare Earth, Vulcan Elements, XLight, and L3 Harris Technologies.

Furthermore, U.S. Commerce Secretary Lutnick has hinted to the media that the current administration might take equity stakes in major defense contractors like Lockheed Martin (LMT).

In summary, the aforementioned listed companies, key mineral/rare earth/battery material supply chains, nuclear energy/small modular reactors (SMR) and advanced nuclear fuel, as well as other quantum computing targets, are likely areas where the Trump administration will continue to place its bets in the second half of the year.