Quantum Computing Stocks Soar Amid Trump’s Ambitious ‘Stargate’ AI Project
Quantum computing stocks surged on Tuesday, riding a wave of optimism as the Nasdaq composite also climbed. Investors are closely watching former President Donald Trump’s first major tech initiative—a groundbreaking artificial intelligence infrastructure project dubbed “Stargate.”
The potential synergy between AI, which demands immense computational power, and quantum computing has tech insiders buzzing. Trump’s announcement came with the repeal of a Biden-era executive order mandating AI developers to share sensitive data with the government.
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A $500 Billion Vision
“Stargate” has garnered backing from global heavyweights. Equity funding is led by Japan’s SoftBank Group, Oracle (ORCL), MGX, and OpenAI, with technology partners including Arm Holdings (ARM), Microsoft (MSFT), and Nvidia (NVDA). The consortium has pledged an initial $100 billion, with plans to invest up to $500 billion over four years.
Despite OpenAI’s recent hiring of a quantum scientist from PsiQuantum, reports suggest it has yet to commit to a major quantum computing project.
Larry Ellison says the Stargate Project will construct the largest computer ever built which will enable AI to create cancer vaccines, personalized medicine and pandemic prevention pic.twitter.com/Sie3bXiSTQ
— Tsarathustra (@tsarnick) January 22, 2025
Quantum Stocks Shine
Rigetti Computing (RGTI) stock skyrocketed 42% to 13.98. IonQ (IONQ) gained 16.5% to 45.31, while Quantum Computing (QUBT) rose 17% to 11.49.
According to Nature, quantum startups fall into two main camps:
- Ion-based technology supported by Google (GOOGL), IBM (IBM), and Rigetti.
- Ion-based technology developed by IonQ, Quantinuum, and Alpine Quantum Technologies.
Quantum stocks also surged in December after Google announced its Willow quantum chip.
Nvidia’s Skepticism
However, Nvidia (NVDA) CEO Jensen Huang recently cast doubt on quantum computing’s near-term potential, stating it may take 15 to 30 years to become commercially viable. Huang’s comments momentarily sent quantum stocks lower earlier this month.
Despite this, Nvidia remains active in quantum development, a field poised to challenge its dominance in AI chipmaking.
The Future of Quantum Computing
Quantum computing operates at the subatomic level, utilizing technologies like superconducting chips to tackle problems beyond the reach of classical computers. Advances in the field could revolutionize AI, cybersecurity, and other industries.
Microsoft (MSFT) recently launched “Quantum Ready,” a new Azure program, further signaling the tech sector’s growing interest in quantum innovation.
A New Tech Powerhouse
Trump has tapped former PayPal executive and Silicon Valley VC David Sacks as the nation’s AI and cryptocurrency czar. Sacks, a close associate of Elon Musk, is expected to play a pivotal role in shaping U.S. tech policy under the Stargate initiative.
With Stargate’s ambitious goals and quantum computing’s transformative potential, investors are betting on a seismic shift in the tech landscape.
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