Xanadu Quantum Technologies Ltd's stock soared 21.15% during intraday trading on Friday, extending gains from the pre-market session.

The significant rally is largely attributed to a sector-wide surge in quantum computing stocks, sparked by NVIDIA Corp.'s announcement of new open-source AI models specifically designed for quantum applications. This industry-wide catalyst provided substantial momentum for Xanadu and its peers.

Investor sentiment was further strengthened by Xanadu's own positive developments. The company reported strong full-year results, entered the period with enhanced capital resources, and detailed a multi-year growth strategy. Key advancements include progress in DARPA's Quantum Benchmarking Initiative, which unlocks eligibility for up to $15 million in additional U.S. government funding, and participation in Canada's Quantum Champions Program with support of up to CA$23 million. The company also noted expanded adoption of its PennyLane software platform and the launch of its new Aurora photonic quantum computer system.