Shares in Qualcomm (QCOM) stock climbed 15% this past week thanks to an overall surge in the quantum computing stock market. The sector received an investment boost from the Trump administration worth nearly $2B. Qualcomm was one of seven other companies to receive $100M in investments, with IBM receiving $1B in exchange for an equity stake by the government.
The Trump administration’s investment is part of a broader push to shore up the domestic supply chain and counter China in crucial sectors. The quantum computing industry is growing exceedingly crucial in that effort, in tandem with the AI sector. Following Trump’s visit to China, it’s clear the admin is working to ramp up those efforts to beat China to the punch.
Secretary of Commerce Howard Lutnick also stated:
“With today’s CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation. These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities.”
Furthermore, Qualcomm (QCOM) stock soared on Friday after the chip company reached an agreement with automaker Stellantis (STLA). This expands a contract between the two for Qualcomm’s Snapdragon system-on-chip (SoC) products. The expanded partnership includes Qualcomm’s Snapdragon Digital Chassis and Snapdragon Ride Pilot ADAS platform. These chips offer driver assistance and other safety features. These will be used in millions of next-generation vehicles that Stellantis is working on
Qualcomm QCOM stock rose 12.03% on Friday, building on a 40.68% year-to-date gain. The shares have also increased by 46% over the past 12 months, one of the best performances among quantum stocks. On Wall Street, the consensus for QCOM remains bearish, with the average price forecast at $178.81, representing a potential 24.98% downside for the shares’ current price of $238.
