Shares of Rigetti Computing surged 6.85% during intraday trading on Thursday, leading a sector-wide rally in quantum computing stocks.

The sharp move higher was driven by news that the U.S. Commerce Department, under the Trump administration, plans to award a total of $2 billion in grants to nine quantum-computing companies and will take equity stakes in them. Rigetti Computing is slated to receive up to $100 million in proposed funding under the CHIPS and Science Act, having signed a letter of intent with the government. The deal contemplates the Department receiving an equity stake in Rigetti consistent with the funding amount.

The funding initiative is part of a broader government push to bolster domestic leadership in critical emerging technologies and reduce reliance on foreign supply chains. Commerce Secretary Howard Lutnick stated the strategic investments aim to advance American quantum capabilities and create high-paying jobs. The news sparked significant investor interest, validating the company's technology roadmap and providing non-dilutive capital for its development efforts.