Here's why Wall Street is so chuffed about Trump investing $2 billion in quantum computing companies

Shares of quantum computing companies popped after the U.S. government announced it would provide $2 billion in grants to nine firms under the CHIPS and Science Act. The Wall Street Journal was first to report (1) the news.

Quantum computing could eventually play a major role in areas like national defense, energy systems and biopharmaceuticals, among others. The new government grants will be used to “strengthen America’s position in this critical frontier technology,” according to the National Institute of Standards and Technology (NIST (2)).

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The NIST also said it would take a minority, non-controlling stake in each company. And this has Wall Street excited, with shares of quantum-computing companies jumping as high as 33% after the announcement.

Shares of IBM (NYSE: IBM) — which received the largest grant — rose 12%. D-Wave rose 33%, Infleqtion rose 31% and Rigetti rose 30%. Even quantum firms that weren’t part of the announcements saw gains (3).

But, while the government is dipping its toes into quantum, individual investors may still want to exercise caution.