New
Why Quantum Computing Stock Ionq Surged Higher This Week
Shares of quantum computing company IonQ (NYSE: IONQ) raced higher this week. The stock was up by 28.5% as of Friday morning, according to data provided by S&P Global Market Intelligence.
Many quantum computing stocks took off last year as investors hoped to get ahead of the crowd in what could be a transformational technology and stock sector. IonQ shares more than tripled in 2024, but reversed course to start the new year. The rebound this week came for a similar reason as the correction that occurred the week prior.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
The year to become "Quantum-Ready"
Last week at the CES conference in Las Vegas, Nvidia CEO Jensen Huang commented that practical quantum computers could still be 15 to 30 years away. That hit these high-flying stocks hard.
IonQ's technology for quantum computers involves using charged atoms (ions) as qubits. Qubits, or quantum bits, are the basic units of information in quantum computing. IonQ believes its technology provides competitive advantages, and it holds a large intellectual property portfolio.
This week, investors shrugged off Huang's extended timeline after Microsoft published a blog post saying that quantum research was accelerating and now was the time to become "quantum-ready." Also this week, IonQ announced a new $21.1 million deal with the United States Air Force Research Lab (AFRL) for the installation of quantum network infrastructure to help connect ground stations to drones.
The company also announced a new collaboration with the state of Maryland and the University of Maryland this week. IonQ, which is based in College Park, Maryland, plans to anchor a "state-of-the-art quantum intelligence campus" at the university.
IonQ is already generating revenue, too. Third-quarter sales more than doubled year over year to $12.4 million. It expects to report 2024 full-year revenue of about $40 million. But the excitement around quantum computing has driven its market cap to over $9 billion.
It's probably too early to be investing in IonQ, especially after the stock more than tripled in the last year. But it's still worth keeping an eye on quantum computing companies.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $346,349!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,229!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $454,283!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 13, 2025
Howard Smith has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
