D-Wave Quantum (QBTS) stock jumped more than 4.5% on Tuesday after the company announced it had finalized a definitive agreement with the U.S. Department of Commerce for up to $100 million in CHIPS and Science Act funding. Shares were trading around $16.96 in premarket activity, up 2.29% ahead of the regular session open.

The funding deal had been signaled earlier through a Letter of Intent, but Tuesday's announcement confirmed the agreement is now locked in. D-Wave says the money will go toward research and development for both its annealing and gate-model quantum computing technologies — two different approaches to quantum computing, a combination that is relatively rare in the industry. Annealing quantum computers are optimized for finding solutions to complex optimization problems, while gate-model systems are the more general-purpose architecture pursued by most major quantum developers, making D-Wave's dual-track approach a notable differentiator.

The U.S. government is backing $RGTI and $QBTS with up to $200M combined to scale next generation quantum systems. Commerce will also take minority stakes in both as Rigetti works to scale superconducting systems and D Wave targets up to 100,000 qubits. pic.twitter.com/mvzmm9x6x2

— Shay Boloor (@StockSavvyShay) September 8, 2026

D-Wave plans to use the funds to build a 100,000-qubit annealing system, with target applications including optimization problems, materials simulation, blockchain, and artificial intelligence. The company also has plans for a 10,000-qubit gate-model system designed to support 100 logical qubits capable of running more than one million operations, aimed at quantum chemistry and quantum AI use cases.

CEO Alan Baratz welcomed the award, saying it reflects U.S. government leadership in quantum innovation. He said the funding will help D-Wave expand domestic quantum capabilities and strengthen its supply chain. The agreement comes amid a broader U.S. push to keep quantum technology leadership onshore, with the CHIPS and Science Act having already directed billions toward domestic semiconductor and advanced computing manufacturing since its 2022 passage.

Government Receives Equity Stake

There is a condition attached to the funding. In exchange for the money, the U.S. Department of Commerce will receive a minority, non-controlling equity stake in D-Wave. The company framed this arrangement as a way to offer potential returns to U.S. taxpayers.

The deal aligns with the broader goals of the CHIPS and Science Act, which aims to grow domestic capacity in advanced technologies, including quantum computing.

Technical Picture Remains Weak

Despite the headline-grabbing news, QBTS's technical setup remains bearish. The stock is sitting 9.5% below its 20-day simple moving average of $18.81 and more than 20% below its 200-day SMA of $21.52. The MACD remains below its signal line with a negative histogram, and a death cross formed in March when the 50-day SMA crossed below the 200-day SMA. Traders are watching $19.50 as a key resistance level and $16 as near-term support.

Analyst sentiment, however, remains positive. The stock holds a Buy consensus rating with an average price target of $38.78. Rosenblatt maintained its Buy rating with a $43 target as recently as August, while Wedbush holds an Outperform rating with a $40 target.

D-Wave also has exposure through quantum-focused ETFs, including the WisdomTree Quantum Computing Fund (WQTM) and the Tradr 2X Long QBTS Daily ETF (QBTX).