We recently published Why These 10 Stocks are Soaring by Double Digits. D-Wave Quantum Inc. (NYSE:QBTS) is one of the best performers on Thursday.
D-Wave snapped a five-day losing streak on Thursday, jumping 13.81 percent to close at $31.06 apiece as investors gobbled up shares in quantum computing firms following news that they were in talks with the US government for a potential equity investment.
According to a report by the Wall Street Journal, D-Wave Quantum Inc. (NYSE:QBTS), alongside its listed counterparts IonQ Inc. and Rigetti Computing, were in negotiations with the Commerce Department for potential funding, in line with the Trump administration’s intervention in industries that it deemed critical to economic growth.
The report said that each firm was looking to get a minimum $10 million in funding. Other firms were also expected to vie for the funding.
The talks followed the government’s successful investment in lithium and rare earth companies, namely Lithium Americas and MP Materials, as it seeks to ramp up domestic production and reduce reliance on imports.
In other news, D-Wave Quantum Inc. (NYSE:QBTS) recently redeemed 5 million of outstanding warrants, which are exercisable for conversion into shares, cash, or both, until November 19, 2025.
If all warrants are exercised, approximately 7.2 million shares of common stock will be issued and are expected to result in less than 2.1 percent dilution to existing shareholders.
While we acknowledge the potential of QBTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
