TLDR
- IonQ stock jumped 4.3% on October 9, driven by positive developments including completion of its Vector Atomic acquisition for quantum sensing applications
- B. Riley analyst Craig Ellis maintained his Buy rating with a $100 price target, representing 29% upside potential from current levels
- IonQ uses trapped ion technology that operates at room temperature and achieves 99.97% two-qubit gate fidelity, higher than competitor Rigetti’s 99.5%
- Quantum computing stocks have surged recently with IonQ up 77% in the past month and 690% over the past year
- Wall Street consensus remains Moderate Buy with average price target of $61.63, though opinions vary on the company’s commercial timeline
IonQ shares climbed 4.3% on October 9, continuing a strong run that has seen the stock gain 77% over the past month.
The quantum computing company completed its acquisition of Vector Atomic on October 7. This deal marks IonQ’s entry into quantum sensing for positioning, navigation, and timing applications.
The acquisition opens doors to defense, aerospace, and autonomous vehicle markets. Vector Atomic specializes in advanced quantum sensors that could complement IonQ’s existing computing business.
B. Riley Securities analyst Craig Ellis maintained his Buy rating on the stock. He set a price target of $100, the highest on Wall Street.
Ellis recently raised his price target from $75 to $100. He cited faster-than-expected progress in quantum technology and commercial applications.
The analyst pointed to the Department of Energy’s National Labs focusing more on turning scientific advances into market-ready products. What was once experimental technology is becoming more practical for commercial use, according to Ellis.
The Technical Edge
IonQ’s approach differs from most competitors in a meaningful way. While Rigetti Computing and D-Wave use superconducting quantum computing, IonQ employs trapped ion technology.
This method operates at room temperature, making it more economical than traditional approaches. Superconducting methods require cooling particles to near absolute zero.
IonQ currently holds records in accuracy measurements. Its two-qubit gate fidelity stands at 99.97% compared to Rigetti’s 99.5%.
That 0.47% difference matters more than it appears. In quantum computing, even small improvements in accuracy are difficult to achieve and can dramatically change results.
The trade-off is processing speed. IonQ’s systems run slower than superconducting alternatives, but accuracy remains the primary concern for commercial viability.
Market Rally Raises Questions
The broader quantum computing sector has experienced dramatic gains. Rigetti shares jumped 191% recently while D-Wave rose 118%.
IonQ has gained 690% over the past year. The stock now trades at a $23 billion market cap.
Some experts believe quantum computing stocks could be entering bubble territory. The gains have come despite commercial viability still being years away.
IonQ was the first pure-play quantum computing company to go public. This gives it a potential first-mover advantage over competitors.
Wall Street Perspective
Not all analysts share Ellis’s optimism. The consensus rating on TipRanks is Moderate Buy based on six Buy ratings and three Hold ratings.
The average price target sits at $61.63, implying 20% downside from current levels. This creates a wide gap between the most bullish and average forecasts.
The company’s primary revenue still comes from research contracts rather than system sales. Until IonQ can consistently sell its computing units, it remains a speculative investment.
The company and its peers have pointed to 2030 as a potential turning point for commercial relevance. That timeline puts full commercialization roughly five years away.
IonQ’s second-quarter results showed limited system sales that could sustain operations long-term. Revenue generation remains tied to research partnerships rather than product sales.
Ellis noted that progress in commercial applications is moving faster than he initially expected. The Department of Energy’s shift toward market-ready products could accelerate adoption timelines.
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