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Trump Era Funding Boosts Quantum: AMZN, MSFT, IONQ Poised for Gains
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Key Takeaways
Quantum computing is set to witness a 41.8% CAGR from 2026-2031, fueled by public and private funding.
AMZN, MSFT and IONQ stand to gain from new federal initiatives, partnerships and R&D programs.
Public quantum funding has surpassed $10B, signaling a global shift from research to real-world deployment.
The stupendous growth expectation for the quantum computing space is now mainstream. Going by a recent MarketsandMarkets forecast, this space is projected to witness a CAGR of 41.8% from 2026 to 2031, primarily demonstrating rising investments by both government and private sectors.
In this article, we have shortlisted three stocks, Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and IonQ (IONQ - Free Report) , from technology and pure-play quantum firms for long-term gains within the quantum computing space, supported by substantial government investments and strategic partnerships.
McKinsey’s Quantum Technology Monitor 2025 highlights a sharp rise in public investment, signaling growing government confidence in quantum’s strategic and economic value. In 2024, global governments invested about $680 million in start-ups and announced $1.8 billion in broader quantum initiatives, from R&D to infrastructure. By early 2025, new commitments, led by Japan’s $7.4 billion and Spain’s $900 million, pushed total announced public funding beyond $10 billion. This surge marks a shift from research to real-world deployment, as policy-driven capital accelerates commercialization and strengthens the global race for quantum advantage.
Image Source: Mckinsey & Company
Reports suggest that the Trump administration is crafting executive orders to help accelerate federal adoption of quantum technology and drive agencies to adopt post-quantum cryptography. If enacted, such directives might include procurement incentives and tighter timelines, which could accelerate commercialization and reduce risk for vendors. However, as of now, no such orders are entirely in force. Many proposed provisions remain in draft form and are subject to change.
A reauthorized National Quantum Initiative (NQI), with a proposed $2.7 billion budget through FY2029 and an extension to 2034, would further align R&D, grants and industry partnerships. Together, these steps could expand government contracts, attract talent and strengthen commercialization pathways.
For investors, this could mean faster revenue growth, increased M&A activity and higher valuations for leading players in the quantum ecosystem. While the start-up ecosystem remains a fertile ground for innovation, major technology companies such as Amazon, Google (GOOGL - Free Report) , IBM (IBM - Free Report) and Microsoft led many of 2024 and 2025’s key breakthroughs, signaling a new era for the industry. Publicly listed quantum firms like IonQ and Rigetti Computing are also positioned to gain from this momentum as government and corporate investment increasingly support scalable, commercially viable quantum systems.
Our Picks:
YTD Price Performances: AMZN, MSFT, IONQ
Image Source: Zacks Investment Research
Amazon: Amazon Web Services (AWS) has advanced quantum computing with its proprietary Ocelot chip (Feb 2025), using "cat qubits" to improve error correction and cut costs by up to 90%. Beyond hardware, AWS is supporting U.S. federal agencies through its Quantum Embark program and collaborating with General Dynamics Information Technology on cybersecurity and AI solutions for defense and civilian agencies. These efforts position Amazon to leverage government partnerships and investments in quantum technology.
Amazon, currently a Zacks Rank #2 (Buy) stock, has a historical growth rate of 30.7%. The stock is projected to report earnings growth of 23.2% on 11.1% revenue growth in 2025.
Microsoft: It is making significant strides in quantum computing in 2025. In February 2025, Microsoft unveiled the Majorana 1 quantum processor, the first to utilize topological qubits based on a new class of materials called topoconductors. In September 2025, Microsoft announced a Quantum Research Center at the University of Maryland’s Discovery District to advance collaborative hardware and software development with government, academia and industry partners, supporting Maryland’s "Capital of Quantum" strategy.
Additionally, Microsoft participates in the Defense Advanced Research Projects Agency (DARPA)'s US2QC program, aiming to accelerate the development of industrially useful quantum computers, highlighting its close collaboration with federal agencies.
Microsoft, another Zacks Rank #2 stock, has a historical growth rate of 17%. The stock is projected to report earnings growth of 12.9% on 14% revenue growth in 2025.
IonQ: Among the pure plays, IONQ can be considered as one of the major game changers within the quantum computing space. In 2025, IonQ advanced its quantum computing initiatives through key government collaborations. The company signed a Memorandum of Understanding with the U.S. Department of Energy to develop space-based quantum technologies, including secure quantum networking via Capella Space. Additionally, IonQ was selected for DARPA’s Quantum Benchmarking Initiative to help validate industrially useful quantum computers, reinforcing its role in national security and technological innovation.
Image: Bigstock
Trump Era Funding Boosts Quantum: AMZN, MSFT, IONQ Poised for Gains
Key Takeaways
The stupendous growth expectation for the quantum computing space is now mainstream. Going by a recent MarketsandMarkets forecast, this space is projected to witness a CAGR of 41.8% from 2026 to 2031, primarily demonstrating rising investments by both government and private sectors.
In this article, we have shortlisted three stocks, Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and IonQ (IONQ - Free Report) , from technology and pure-play quantum firms for long-term gains within the quantum computing space, supported by substantial government investments and strategic partnerships.
McKinsey’s Quantum Technology Monitor 2025 highlights a sharp rise in public investment, signaling growing government confidence in quantum’s strategic and economic value. In 2024, global governments invested about $680 million in start-ups and announced $1.8 billion in broader quantum initiatives, from R&D to infrastructure. By early 2025, new commitments, led by Japan’s $7.4 billion and Spain’s $900 million, pushed total announced public funding beyond $10 billion. This surge marks a shift from research to real-world deployment, as policy-driven capital accelerates commercialization and strengthens the global race for quantum advantage.
Image Source: Mckinsey & Company
Reports suggest that the Trump administration is crafting executive orders to help accelerate federal adoption of quantum technology and drive agencies to adopt post-quantum cryptography. If enacted, such directives might include procurement incentives and tighter timelines, which could accelerate commercialization and reduce risk for vendors. However, as of now, no such orders are entirely in force. Many proposed provisions remain in draft form and are subject to change.
A reauthorized National Quantum Initiative (NQI), with a proposed $2.7 billion budget through FY2029 and an extension to 2034, would further align R&D, grants and industry partnerships. Together, these steps could expand government contracts, attract talent and strengthen commercialization pathways.
For investors, this could mean faster revenue growth, increased M&A activity and higher valuations for leading players in the quantum ecosystem. While the start-up ecosystem remains a fertile ground for innovation, major technology companies such as Amazon, Google (GOOGL - Free Report) , IBM (IBM - Free Report) and Microsoft led many of 2024 and 2025’s key breakthroughs, signaling a new era for the industry. Publicly listed quantum firms like IonQ and Rigetti Computing are also positioned to gain from this momentum as government and corporate investment increasingly support scalable, commercially viable quantum systems.
Our Picks:
YTD Price Performances: AMZN, MSFT, IONQ
Image Source: Zacks Investment Research
Amazon: Amazon Web Services (AWS) has advanced quantum computing with its proprietary Ocelot chip (Feb 2025), using "cat qubits" to improve error correction and cut costs by up to 90%. Beyond hardware, AWS is supporting U.S. federal agencies through its Quantum Embark program and collaborating with General Dynamics Information Technology on cybersecurity and AI solutions for defense and civilian agencies. These efforts position Amazon to leverage government partnerships and investments in quantum technology.
Amazon, currently a Zacks Rank #2 (Buy) stock, has a historical growth rate of 30.7%. The stock is projected to report earnings growth of 23.2% on 11.1% revenue growth in 2025.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Microsoft: It is making significant strides in quantum computing in 2025. In February 2025, Microsoft unveiled the Majorana 1 quantum processor, the first to utilize topological qubits based on a new class of materials called topoconductors. In September 2025, Microsoft announced a Quantum Research Center at the University of Maryland’s Discovery District to advance collaborative hardware and software development with government, academia and industry partners, supporting Maryland’s "Capital of Quantum" strategy.
Additionally, Microsoft participates in the Defense Advanced Research Projects Agency (DARPA)'s US2QC program, aiming to accelerate the development of industrially useful quantum computers, highlighting its close collaboration with federal agencies.
Microsoft, another Zacks Rank #2 stock, has a historical growth rate of 17%. The stock is projected to report earnings growth of 12.9% on 14% revenue growth in 2025.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
IonQ: Among the pure plays, IONQ can be considered as one of the major game changers within the quantum computing space. In 2025, IonQ advanced its quantum computing initiatives through key government collaborations. The company signed a Memorandum of Understanding with the U.S. Department of Energy to develop space-based quantum technologies, including secure quantum networking via Capella Space. Additionally, IonQ was selected for DARPA’s Quantum Benchmarking Initiative to help validate industrially useful quantum computers, reinforcing its role in national security and technological innovation.
IONQ, a Zacks Rank #3 (Hold) stock, is projected to report earnings growth of 37.8% on 115.1% revenue growth in 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IonQ, Inc. Price and Consensus
IonQ, Inc. price-consensus-chart | IonQ, Inc. Quote