Shares of D-Wave Quantum Inc. (QBTS) are surging 5.28% in pre-market trading on Friday, continuing the upward momentum from Thursday's session. This marks the second consecutive day of significant gains for the quantum computing company, driven by ongoing speculation about potential U.S. government investment in the sector.

The rally comes despite the Trump administration's denial of a Wall Street Journal report suggesting that the Commerce Department was "currently" negotiating equity stakes in quantum computing firms. However, investors appear to be focusing on the long-term potential of government support for the industry, rather than the immediate denial.

Thursday saw D-Wave's stock jump by 13.8%, alongside gains in other quantum computing stocks like IonQ and Rigetti Computing. The initial spark for this rally was the WSJ report indicating that the U.S. government was considering taking equity stakes in several quantum computing companies in exchange for funding, with potential minimum awards of about $10 million per company.

While the Commerce Department stated it is not currently negotiating equity stakes, the wording of the denial has left room for investor optimism about future possibilities. The quantum computing sector is seen as crucial for maintaining U.S. technological superiority, particularly in competition with China. As the technology is not yet commercially viable, government support could be pivotal in advancing its development.