Summary of "Trump Just Bought Quantum Stocks"
Trump Just Bought Quantum Stocks
Presenter: Felix Breen (former investment banker, founder of the GOAT Academy and co-founder of TradeVision.io) Research Support: Winston and Albert
Key Finance-Specific Content Summary
Assets & Tickers Mentioned
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Quantum Computing Stocks:
- INQ (IonQ) Market cap: $6 billion Short interest: ~20% Shares shorted: 62 million
- RGTI (Rigetti Computing) Market cap: $800 million Short interest: ~20%
- QBTS (D-Wave Quantum) Market cap: $1.8 billion Short interest: ~20%
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Other Government-Backed Stocks:
- Intel (INTC) Government took a 10% stake in August 2025, triggering a strong rally.
- MP Materials (MP) Rare earth producer, Department of Defense invested $400 million, stock up ~180-260%.
- Lithium Americas (LAC) Energy Department took 5% stake and provided $2 billion loans, stock up ~200%.
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Quantum ETF: Mentioned as an option in the research document (unnamed).
Macroeconomic & Market Context
- The Trump administration’s Commerce Department is reportedly negotiating to take equity stakes in heavily shorted quantum computing companies (INQ, RGTI, QBTS).
- These stocks have very high short interest (~20%), with INQ particularly notable for 62 million shares shorted.
- Government equity stakes (potentially $10 million+ per company) could trigger a massive short squeeze in 2025.
- Historical precedent shows government equity stakes in beaten-down, heavily shorted companies (Intel, MP Materials, Lithium Americas) have led to rapid and large price increases.
- Quantum computing is framed as a strategic, national security priority, increasing the likelihood of government backing.
Investing Strategy & Risk Management Framework
Why Quantum Stocks Are Vulnerable to a Short Squeeze
- High short interest means many shares have been borrowed and sold by traders betting on price declines.
- Government buying signals federal backing and strategic importance, causing institutional investors to buy and shorts to panic.
- Shorts face unlimited loss potential as they must buy back shares at higher prices to close positions.
- Traditional short strategies (waiting out the position, shorting more) are ineffective here due to margin calls and escalating losses.
Step-by-Step Short Squeeze Mechanism (Using INQ as Example)
- Shorts borrow and sell shares at a lower price (e.g., $8–$10).
- Government announces equity stake (e.g., $10 million+), becoming a shareholder.
- Market perceives federal backing and strategic importance, triggering institutional and retail buying.
- Stock price rises (e.g., from $8 to $15+), forcing shorts to cover at higher prices.
- Shorts buy back shares, pushing prices even higher, potentially to multiples of original price.
- This cascade can lead to explosive price gains and a forced short squeeze.
Positioning & Selling Rules
- Position before official government announcements during the “talks phase” to potentially capitalize on early moves.
- Use trailing stops or set stop-losses around 20–30% below purchase price to protect gains and limit downside.
- Avoid holding through entire squeezes to prevent giving back gains.
- Recognize this is a high-risk, speculative investment with no guaranteed outcomes.
Company & Sector Details
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INQ (IonQ): Largest quantum pure play, partnerships with Microsoft and AWS, uses trapped ion quantum technology, has actual revenue streams.
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RGTI (Rigetti Computing): Smallest market cap, superconducting quantum tech, partnerships with NASA and Department of Energy, US-based with a quantum cloud platform.
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QBTS (D-Wave Quantum): Mid-sized, different quantum architecture, commercial quantum systems deployed, partnerships with Lockheed Martin, Google, and Los Alamos National Lab.
Performance Metrics & Key Numbers
- INQ short interest: 62 million shares (20% of float).
- Market caps:
- INQ: $6 billion
- RGTI: $800 million
- QBTS: $1.8 billion
- Past government investment examples:
- Intel: 10% government stake in 2025, stock surged from ~$20.
- MP Materials: $400 million DoD investment, stock up ~180-260%.
- Lithium Americas: 5% stake + $2 billion loans, stock up ~200%.
Tools & Resources Offered
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Free masterclass on spotting patterns, timing buys and sells, and risk management: felixfriends.org/getfree
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Free research document on quantum stocks and ETFs in private community: felix.org/resource
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TradeVision.io platform for watchlists and real-time alerts on these stocks.
Disclaimers
- No promises or guarantees of returns.
- Channel and presenter do not provide financial advice.
- No affiliate links or payments from companies mentioned.
- Investment in these quantum stocks is high-risk and speculative.
- Government equity stakes are not confirmed yet; deals are in negotiation phase.
Summary
Felix Breen explains that the Trump administration’s potential equity investments in heavily shorted quantum computing stocks (INQ, RGTI, QBTS) could trigger one of the largest short squeezes in history, similar to past government interventions in Intel, MP Materials, and Lithium Americas. These stocks have roughly 20% short interest, and government backing would signal strategic importance, forcing shorts to cover at higher prices and causing rapid price appreciation.
Investors should be cautious, use risk management techniques like trailing stops, and consider positioning ahead of official announcements while understanding the speculative nature of this opportunity. Felix provides educational resources and tools to help investors navigate this complex scenario.
Presenters / Sources
- Felix Breen (main presenter)
- Winston (research assistant)
- Albert (research assistant)
Category
Finance
