Consider IONQ Stock for Quantum Computing Play Opportunity

IonQ (NYSE:IONQ) has been at the forefront among publicly traded quantum computing equities with its trapped-ion methodology that utilizes charged atoms for qubits. The business claimed the most powerful 32-qubit quantum computer globally. With the aim of modular quantum computing, IONQ stocks give access via leading cloud platforms to reinforce their presence in the market.

The company brought in $6.1 million in revenue for Q3, surpassing expectations and marking a remarkable year-over-year growth of 122%. The company estimates Q4 earnings to range from $5.3 million to $6.1 million. This sort of guidance increase is among the multiple factors contributing to the stock’s outperformance. In fact, IONQ stocks have surged by 115% in the past year alone.

Let’s explore whether the business will achieve these numbers and whether this is a stock that is currently worth investing in.

Partnership with Rescale

Following the World Economic Forum in Davos in 2024, Rescale, a proponent of cloud-based high-performance computing (HPC), joined forces with IonQ to integrate accelerated cloud computing with quantum computing. The collaboration aims to enhance problem-solving in various fields.

The partnership with IonQ leverages Resclae’s cloud-based accelerated computing and extensive application catalog for quantum computing and unique problem-solving capabilities. Rescale’s infrastructure supports IonQ’s advanced quantum computers. This provides faster and more unique solutions for scientific and engineering challenges.

IonQ and Rescale have worked together to combine quantum computing into hybrid solutions by blending Rescale’s AI-based computational workflows with IonQ’s advanced quantum technology.

The collaboration is expected to expedite R&D and promote innovation in engineering and life sciences. Rescale CEO Joris Poort highlighted the collaborative environment for breakthrough discoveries.

IonQ Chief Revenue Officer Rima Alameddine agreed and stated that the synergy between their quantum computers and Rescale’s R&D platform aims to transform various sectors, including healthcare, life sciences, and national security. This partnership surpasses hardware and software, creating a special ecosystem that empowers researchers to be daring, adventurous, and achieve breakthroughs.

Reach Significant Technical Achievement in Advance

IonQ also achieved its #AQ 35 technical milestone a full year ahead of schedule, quite a milestone in itself. This achievement leverages IonQ Forte, a high-precision trapped ion qubits and connected architecture. It enhances the capabilities of quantum applications such as machine learning and quantum chemistry.

Peter Chapman, CEO of IonQ, emphasized the company’s dedication to robust and accurate quantum systems for commercial use, which should accelerate the path to widespread quantum use.

Furthermore, advancements in qubit count, detection hardware, and a new compiler are contributed. Aligning with IonQ’s journey, pushing for commercial application and industry standards– the #AQ metric, derived from an independent study, evaluates system performance in handling complex circuits.

At #AQ 35, IonQ Forte can concurrently process over 34 billion possibilities. The company’s blog and upcoming research are available for technical details.

IonQ’s #AQ 35 milestone even enticed QuantumBasel as a buyer. Damir Bogdan, QuantumBasel CEO, expects logistics, finance, and pharma innovation on top of AI breakthroughs. IonQ’s quantum computers are accessible on big-name cloud platforms and employed by clients like Airbus and Hyundai Motors.

Stay Patient for Substantial Green Signals Before Purchasing

IonQ certainly remains an important contender in the emerging realm of quantum computing. As this technology becomes easily accessible, I can envision a future potential in which companies like IonQ command massive valuations. That may be the reason behind the company’s substantial price-sales multiple right now, considering it is still a pre-revenue player in this field.

I think that while calls for a speculative bubble are untimely, investors should be cautious with quantum computing stocks. The technology is not quite there yet, and it may take years before this tech becomes as widespread as the bulls anticipate. Additionally, it is uncertain which company will emerge as the leader, as several private competitors will be vying for market share when the time comes.

That being said, this is a stock I believe is worth taking a chance on. If something happens and tech stocks take a beating, that’s when I would give this stock an even closer look. For now, I will happily observe the price action from the sidelines.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s passion for investing led him to pursue an MBA in Finance and take on various management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, combined with his enthusiasm for finding undervalued growth opportunities, contribute to his cautious, long-term investment approach.

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