TLDR
- IonQ stock hit $46.51 despite being unprofitable, with trapped-ion technology achieving 99.9% fidelity breakthrough
- IBM plans $30 billion investment in quantum computing and mainframes over five years
- IonQ raised $1 billion in stock sales, bringing cash reserves to $1.7 billion for development
- IBM’s quantum computers include Eagle processor with 100+ qubits and massive Condor system
- McKinsey estimates quantum computing industry could reach $1.3 billion value by 2035
Two quantum computing companies are drawing investor attention as the technology moves closer to commercial viability. IonQ and IBM represent different approaches to quantum development, each with distinct advantages and investment profiles.
IonQ went public in 2021 as the first pure-play quantum computing company. The company was founded in 2015 by quantum physics experts Christopher Monroe and Jungsang Kim. Revenue nearly doubled to $43.1 million last year, though the company posted a net loss of $331.6 million.
The company recently completed a $1 billion common stock sale. This brings IonQ’s cash and equivalents to nearly $1.7 billion. CEO Peter Chapman projects profitability by 2030 with sales approaching $1 billion.
IonQ uses trapped-ion technology instead of the more common superconducting qubits. The system stores data using quantum bits controlled by precise laser pulses. This approach delivers higher fidelity rates and longer coherence times than traditional quantum methods.
Breakthrough Technology Performance
The company achieved a major breakthrough in September 2024. IonQ reported the first trapped-ion quantum system to surpass 99.9% fidelity. High fidelity refers to the accuracy of quantum computations, a critical factor in eliminating errors.
Trapped-ion qubits maintain their quantum properties for seconds to minutes. Traditional solid-state quantum systems measure coherence time in microseconds to milliseconds. This extended coherence time provides more stability for complex calculations.
IonQ has secured several government contracts. The company signed multiple deals with the U.S. Air Force Research Lab. It also has a contract with the Department of Defense for quantum computing services.
The stock currently trades at $46.51 with a market cap of $12 billion. Shares are down 3.72% as of July 18, 2025. The company operates at a 0.69% gross margin while building its technology platform.
IBM’s Quantum Leadership Position
IBM brings decades of quantum computing experience to the market. The company started developing quantum computers over 30 years ago. It has released several powerful quantum processors and systems.
IBM Eagle became the first processor to exceed 100 qubits in 2021. The company’s IBM Condor currently ranks as the second-largest quantum computer by qubit count. These systems demonstrate IBM’s technical capabilities in the quantum space.
The company outlined an ambitious development roadmap. IBM plans to demonstrate quantum advantage by 2026, where quantum computers solve problems faster than classical machines. By 2029, it aims to develop Quantum Starling, a fault-tolerant quantum computer.
IBM announced a $30 billion investment plan for quantum computing and mainframes in April. This spending is part of a larger $150 billion pledge for U.S. computer manufacturing over five years. The company’s financial strength allows for sustained investment in quantum research.
First quarter 2025 results showed $14.5 billion in revenue and $8 billion in gross profit. Both figures represent slight year-over-year improvements. Gross profit margin increased from 53.5% to 55.2%, showing operational efficiency gains.
IBM ended the quarter with $17.6 billion in cash and cash equivalents. The company’s stock has risen 29% this year, trading at less than 27 times adjusted forward earnings. Current share price stands at $286.06 with a market cap of $266 billion.
McKinsey Digital estimates the quantum computing industry could reach $1.3 billion by 2035, though projections carry uncertainty given the early-stage technology development.
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