The U.S. Government Is Betting Billions on Quantum Computing. These 3 Stocks Are the Biggest Winners. - The Motley Fool
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On Monday, President Donald Trump signed two executive orders that placed quantum computing at the center of U.S. economic and national security policy. The first, titled Ushering in the Next Frontier of Quantum Innovation, directs federal agencies to deliver a scientifically relevant quantum computer to the Department of Energy by 2028 and establishes the Quantum Computer for Application Development and Discovery Science initiative (QC-ADDS) as the vehicle to get there. The second order, focused on cryptographic security, accelerates the government's deadline for migrating all crucial federal infrastructure to post-quantum cryptography (PQC) standards. This is meant to prevent cyberattacks by more-powerful quantum technology that will render current encryption standards obsolete. These orders didn't arrive in isolation. In May, the Trump administration announced $2 billion in CHIPS Act grants to nine quantum companies -- the largest single quantum research and development commitment in U.S. history -- with the government taking equity stakes in return. There is already extensive coverage of quantum computing stocks due to this wave of government investment. Instead, three publicly traded companies stand out to me. They're not pure quantum plays, but they're positioned where the government's money, mandate, and timeline intersect. At work in a data center. Image source: Getty Images. 1. IBM International Business Machines (IBM 2.00%) received $1 billion in proposed CHIPS Act funding -- roughly half the entire quantum package -- to build Anderon, the nation's first pure-play quantum chip foundry, in Albany, New York. IBM matched that dollar for dollar with $1 billion of its own cash, and on June 2, the company committed more than $10 billion in total quantum investment over the next five years. Its road map targets a fault-tolerant quantum computer by 2029, three years ahead of the government's broader national target. ExpandNYSE: IBMInternational Business MachinesToday's Change(-2.00%) $-5.25Current Price$257.71Key Data PointsMarket Cap$247BDay's Range$256.16 - $267.4552wk Range$212.34 - $332.46Volume257.3KAvg Vol8.4MGross Margin57.80%Dividend Yield2.56% The company's stock jumped 12.4% on the day of the grant announcement and has held most of that gain. My investment case here is not that IBM becomes a pure quantum stock -- it generates the majority of its revenue from cloud infrastructure, consulting, and software. Instead, it's because quantum technology gives IBM's platform a durable technical lead in the enterprise market precisely when government mandates are forcing all regulated institutions in the country to rethink their computing and security architecture. Anderon is also structured as a stand-alone foundry that will serve competing quantum hardware vendors, which means IBM is building both the cars and the roads. 2. GlobalFoundries GlobalFoundries (GFS +1.86%) is the infrastructure play that almost nobody discusses when the quantum conversation starts. The semiconductor manufacturer signed a $375 million CHIPS Act letter of intent to launch a dedicated Quantum Technology Solutions division -- a foundry operation designed to manufacture chips for every major qubit architecture. Alphabet, Microsoft, and Nvidia all publicly endorsed the initiative at its launch, which tells you something about which companies need the manufacturing capacity. ExpandNASDAQ: GFSGlobalFoundriesToday's Change(1.86%) $1.56Current Price$85.26Key Data PointsMarket Cap$46BDay's Range$82.78 - $88.6452wk Range$31.51 - $92.55Volume125KAvg Vol4.7MGross Margin26.11%Dividend Yield0.14% GlobalFoundries is a pick-and-shovel play on quantum computing. As competing architectures emerge, it can supply components regardless of which technology wins. The company has already built dedicated manufacturing centers in New York State and Vermont, earning support from the U.S. Department of Commerce, which took about a 1% equity stake. While the stock has rallied since the quantum funding announcement, it still trades at a far more reasonable valuation than many pre-revenue quantum pure plays. 3.
Palo Alto Networks The second executive order President Trump signed on Monday is the one that most investors haven't priced in yet: the directive mandating that all crucial federal infrastructure and high-value systems migrate to PQC by 2030 and 2031. This is not an ambition -- it is a procurement mandate that flows directly to vendors who have commercial PQC products deployed today. ExpandNASDAQ: PANWPalo Alto NetworksToday's Change(2.54%) $7.24Current Price$292.50Key Data PointsMarket Cap$232BDay's Range$285.49 - $295.5452wk Range$139.57 - $302.95Volume183.5KAvg Vol8.2MGross Margin71.94% Palo Alto Networks (PANW +2.54%) launched its Quantum-Safe Security in January 2026, making it generally available to enterprise customers. The PQC market is projected to grow from $420 million in 2025 to $2.84 billion by 2030, with a compound annual growth rate above 46%, driven by government deadlines like these. Every chief information security officer at a federal agency or regulated financial institution now has a hard compliance date. That date creates a budget line.
Palo Alto Networks is one of only a handful of large-cap cybersecurity companies with commercial PQC products shipping now. The company's shares have continued to grow through the broader 2026 software correction, suggesting the market already recognizes part of this thesis. The executive order is new fuel on a fire that was already burning.