IONQ Inc. shares surged 9.91% during intraday trading on Thursday, as the quantum computing sector rallied following a major government funding announcement.

The U.S. Commerce Department confirmed plans to award approximately $2 billion in grants to nearly a dozen quantum computing companies, a move designed to foster the development of the domestic quantum industry. As part of the sweeping deal, International Business Machines announced it would create a new standalone company called Anderon, styled as "America's first pure-play quantum foundry," with IBM and the Commerce Department each contributing $1 billion.

Pure-play quantum stocks across various methodologies saw significant gains on the news. The funding initiative, stemming from the 2022 Chips and Science Act, aims to spur research into emerging technologies and includes government equity stakes in some companies, highlighting the economic and national security priority placed on advancing quantum computing capabilities.