Quantum computing stocks staged a strong rally on Thursday after reports emerged that the Trump administration is preparing a $2 billion initiative designed to accelerate domestic quantum technology development. The proposed package, which reportedly includes grants and direct equity investments connected to the CHIPS and Science Act, appears to have reignited enthusiasm surrounding an industry that many still believe remains in the very early stages of commercialization.
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QBTX: an alternative to margin or options on QBTSThe move sent speculative quantum names soaring throughout the trading session. Rigetti Computing (NASDAQ:RGTI) jumped around 30%, D-Wave Quantum (NYSE:QBTS) surged 33%, while Quantum Computing (NASDAQ:QUBT) climbed nearly 19%.
The rally also arrived shortly after these companies reported quarterly earnings, allowing Rosenblatt analyst John McPeake to weigh in again on how quickly commercial demand for quantum systems may develop over the coming years.
Starting with Rigetti Computing, McPeake reiterated his Buy rating and maintained a $40 price target after the company delivered quarterly revenue ahead of consensus expectations. While the analyst acknowledged a slight miss relative to his own estimate because of machine-sale timing assumptions, he believes that Rigetti continues making meaningful operational progress within the superconducting qubit market.
McPeake highlighted the company’s ongoing efforts to improve the two-qubit gate fidelity rate of its Cepheus 108 system while also advancing development milestones for its planned 150-qubit machine expected around year-end. The analyst additionally pointed toward Rigetti’s updated long-term roadmap involving a future 1,000-plus qubit system with fidelity approaching 99.9% over a three-year horizon.
Beyond the hardware roadmap itself, McPeake believes Rigetti’s vertically integrated “fab-to-compute stack” gives the company an important advantage within the quantum computing ecosystem. Furthermore, the analyst expressed optimism surrounding Rigetti’s open-solution market approach, adding that he sees a realistic path toward achieving useful commercial quantum applications before the decade concludes. (See RGTI stock forecast)
D-Wave Quantum also received a bullish assessment from McPeake following the company’s latest quarterly report. The Rosenblatt analyst reiterated his Buy rating and preserved his $43 price target after D-Wave reported stronger-than-expected bookings trends during the first quarter.
According to McPeake, one of the most encouraging developments involved accelerating demand from research organizations, AI and machine-learning workloads, as well as blockchain-related applications. The analyst noted that D-Wave now expects to deliver between two and three machine sales annually, with much of that activity anticipated during the second half of 2026.
In addition, McPeake argues that D-Wave presented a realistic long-term outlook regarding the evolution of its gate-based quantum computing platform. In addition, he believes the company’s upcoming June 1 analyst day could provide additional detail regarding strategy plans involving both its annealing technology and its broader gate-based quantum ambitions. (See QBTS stock forecast)
Quantum Computing rounded out the list of quantum names receiving bullish commentary from McPeake following earnings. The analyst reiterated his Buy rating alongside a $22 price target while arguing that the company now possesses “some real top line heft” following contributions from both the acquired LSI fabrication facility and the NuCrypt business.
The analyst highlighted Quantum Computing’s first-quarter revenue figure of $3.7 million, which exceeded both his own forecast and broader Wall Street expectations. Although higher merger and acquisition expenses pressured EBITDA during the quarter, McPeake believes those costs should normalize over time.
McPeake also pointed toward the company’s substantial cash position as an important factor supporting the stock. After spending approximately $110 million on the LSI acquisition, Quantum Computing still finished the quarter holding around $1.4 billion in cash. The analyst additionally noted that first-quarter interest income accounted for 73% of operating expenses, providing another layer of financial flexibility while the company continues advancing development work involving its Dirac platform, LiDAR systems, and gate-based photonic quantum computer efforts.
According to McPeake, Quantum Computing may not require many additional positive developments to justify further upside from current levels. Continued revenue momentum, additional Dirac progress, or new developments involving the company’s photonic quantum systems could all potentially support his bullish outlook moving forward. (See QUBT stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.