IonQ Stock Buy Recommendation Aims to Be the Nvidia of Quantum

 TechStockTracker
 
  TechStockTracker
 
Follow  Message
 
 
 
TechStockTracker decode the complex world of finance and investments, with a special emphasis on the dynamic intersection of technology and dividend growth stocks.
 

•  28 Aug 2025
 

•   IONQ  
   
  +9.45%

In the past two years, the quantum computing market has been moving from academic theory to the field. Investors, governments and giant corporations regard it as one of the next technological revolutions with the potential to change the balance of power in the global market in every field. The American company IonQ $IONQ is one of the players in the quantum market.

Analyst Craig Ellis from the investment house Riley reviews the stock with a "buy" recommendation and a target price of $61 per share, about 50% above the closing price. He joins a number of investment houses that identify the company as a candidate for leadership in the industry. Ellis notes the high transaction rate, the expansion of the intellectual property portfolio (over 1,000 patents) and the strengthening of management with the addition of experienced executives from IBM and J.P. Morgan.

Nicolo De Massi, the company's CEO who took office at the beginning of the year, recently said - "We are focused not only on winning technologically, but also on proving commerciality. Our systems are already generating value today, and customers are paying for the use of quantum computing in the cloud."

In practice, IonQ offers a combination of consulting and support services, the sale of quantum hardware, and a "Quantum Computing as a Service" model - remote access to its quantum computers in the cloud. This combination allows it to build a developer community around its products and penetrate the commercial market earlier than some competitors.

The promise of quantum computing concerns the ability to solve problems that classical computing cannot handle in a reasonable time, for example, complex simulations for drug development, supply chain optimization or the development of new materials. This market may reach $100 billion by 2040, or even more, according to various forecasts.

Meanwhile, giant companies such as IBM and Google are leading research projects and presenting breakthroughs. IonQ is focusing on a more flexible business model that allows it to bring in money today. According to the latest reports, IonQ is sitting on a cash register of $1.6 billion, an amount Which is equivalent to about 12% of its market value. This figure gives it financial strength that allows it to fund research, recruit employees, and secure huge contracts with government and corporate entities. Ellis notes that this strength may be enough to reach expected profitability by the end of the decade. However, there are many risks - the company is losing, the entire field is actually losing huge amounts and it depends on the price tag. If the stock falls, the future recruitments that will happen, and they are likely to happen because it lives thanks to recruitments, will greatly dilute the investors.

It should be taken into account that this market is indeed virgin, but since it is considered a major revolution (the next revolution after AI), many players are entering it and increasing competition, while the older players are increasing competition among themselves.

Rigetti and D-Wave are big competitors, both of which have jumped hundreds of percent in the past year in parallel with the progress in their activities. Rigetti, for example, signed a contract with the US Air Force worth $5.8 million, and placed the first quantum computer at a university in the US.

According to Ellis, IonQ could capture a market share of 15% to 40% by 2035, which could put it alongside the biggest players in the industry.

View All Headlines