IonQ Achieves 99.99% Accuracy in Quantum Computing, Aiming to Build Ecosystem
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy IONQ?
Source: NASDAQ.COM
- Accuracy Breakthrough: IonQ has achieved a 99.99% two-gate fidelity, making it one of the most accurate quantum machines, although it is still considered error-prone, highlighting its leading position in quantum computing technology.
- Technological Innovation: By utilizing trapped-ion technology with ionized ytterbium atoms, IonQ enhances qubit stability and employs Clifford Noise Reduction software and Quantum Error Correction codes to lower error rates, strengthening its technological competitiveness.
- Ecosystem Development: IonQ aims to be the Nvidia of quantum computing, not only developing fault-tolerant quantum computers but also integrating technologies through acquisitions like Oxford Ionics and LightSynq to build a comprehensive quantum ecosystem.
- Market Outlook: With a market cap of around $17 billion and technology still in an uncertain phase, IonQ's strong accuracy metrics and strategic acquisitions make it an intriguing investment choice in the quantum computing space, despite the inherent risks.
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Analyst Views on IONQ
Wall Street analysts forecast IONQ stock price to rise
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 31.300
Low
47.00
Averages
75.91
High
100.00
Current: 31.300
Low
47.00
Averages
75.91
High
100.00
About IONQ
IonQ, Inc. is engaged in the quantum computing and networking industry, delivering high-performance systems capable of solving complex commercial and research use cases. Its generation quantum computers, IonQ Forte and IonQ Forte Enterprise, are cutting-edge systems, boasting 36 algorithmic qubits. It sells specialized quantum computing and networking hardware together with related maintenance and support. It also sells access to several quantum computers of various qubit capacities and is in the process of researching and developing technologies for quantum computers with increasing computational capabilities. It makes access to its quantum computers available via three cloud platforms, Amazon Web Services' (AWS) Amazon Braket, Microsoft's Azure Quantum and Google's Cloud Marketplace, and also to select customers via its own cloud service. Its product portfolio also includes quantum key distribution (QKD) systems, quantum random number generators (QRNGs), and single-photon detectors.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Increased Investment: Norges Bank raised its stake in IonQ to $200 million in Q4 while also investing in Rigetti and D-Wave, indicating a diversified investment strategy in quantum computing that may signal growing interest from active asset managers.
- Market Potential: Although the holdings remain small relative to market caps, Wedbush analysts view Norges Bank, as the world's largest sovereign wealth fund, as making a “sophisticated” bet on the long-term potential of quantum computing, potentially attracting more active managers into the space.
- Positive Technology Outlook: Wedbush reiterated its OUTPERFORM ratings on IonQ, Rigetti, and QBTS, maintaining a constructive view on the long-term prospects of quantum computing technology and its addressable market despite recent stock volatility, reflecting confidence in the industry's future.
- Investor Structure Shift: Norges Bank's investment may signify a shift in the investor landscape within quantum computing, moving from a dominance of retail investors and passive managers to increased participation from active managers, further propelling industry growth.
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- IonQ's Technological Edge: IonQ is acquiring SkyWater Technology, which is expected to position it as a leader in quantum computing hardware manufacturing, thereby accelerating hardware iteration and enhancing market competitiveness.
- Quantum Computing Market Potential: IonQ aims to develop systems with over 1 million qubits, which would provide a significant technological advantage in the quantum computing field, attracting investor interest in its future growth potential.
- Alphabet's Financial Strength: With over $400 billion in revenue over the past 12 months, Alphabet leverages its strong financial resources and over a decade of quantum computing R&D experience, making it a key player in the quantum computing sector.
- IBM's SDK Leadership: IBM's quantum computing software development kit (SDK) has been downloaded over 13 million times, showcasing its leadership in quantum computing software, even as hardware competition continues.
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- IonQ's Acquisition Strategy: IonQ is in the process of acquiring SkyWater Technology, which is expected to enhance its leadership in quantum computing hardware manufacturing, thereby accelerating hardware iteration and scaling, and strengthening its market competitiveness.
- Quantum Computing Market Outlook: Quantum computing companies are targeting systems with over 1 million qubits, a milestone that will significantly enhance computational power, and IonQ's progress in this area may position it as an industry leader.
- Alphabet's Financial Strength: With over $400 billion in annual revenue, Alphabet can continuously invest in quantum computing R&D, and its new Willow chip effectively corrects errors during system scaling, enhancing its competitive edge in the quantum computing sector.
- IBM's SDK Advantage: IBM's quantum computing software development kit (SDK) has been downloaded over 13 million times, making it the most popular choice among developers, showcasing its leadership in quantum computing software even as hardware competition continues.
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- Market Volatility Impact: Technology stocks have experienced a volatile start to 2026, with the Nasdaq Composite showing flat performance primarily due to concerns over capital expenditures for AI infrastructure, resulting in a staggering $1 trillion loss in market cap for big tech stocks in just one week, reflecting cautious market sentiment regarding future growth.
- IonQ's Huge Potential: Despite a 21% drop in IonQ's stock price in 2026, a 12-month median price target of $73 from 14 analysts suggests a potential 105% upside, indicating strong market confidence in its quantum computing technology, especially after achieving a 99.99% fidelity in 2-qubit gates.
- Celestica's Growth Drivers: Celestica has benefited from the buildout of AI data centers, with its stock surging 54% over the past six months, and it expects a 50% increase in its connectivity and cloud solutions business in 2026, significantly boosting revenue, particularly through partnerships with major hyperscalers.
- Optimistic Industry Outlook: Celestica anticipates revenues of $17 billion in 2026, a 37% increase from last year, and if its market value aligns with the Nasdaq index, it could reach $92 billion, showcasing its strong growth potential in the AI sector and attracting investor interest.
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- Strong Small-Cap Performance: The Russell 2000 index has achieved an 8% return in 2026, significantly outperforming the S&P 500's 1.4%, indicating robust small-cap performance in the current economic climate and attracting investor interest.
- Diversified Portfolio: The Vanguard Russell 2000 ETF's top ten holdings account for only 5% of its weight, ensuring that its performance is not heavily influenced by a small group of stocks, thus achieving stable returns through broad portfolio contributions.
- Favorable Rate Policies: The Federal Reserve has cut interest rates six times since September 2024, with two more cuts expected in 2026, directly boosting profitability for about 32% of Russell 2000 companies, enhancing their long-term growth potential.
- Attractive Valuation: With a price-to-earnings ratio of 20.4, the Russell 2000 trades at a 19% discount to the S&P 500's 25.2, providing an attractive opportunity for investors and potentially driving continued strong performance in 2026.
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- Strong Returns: The Russell 2000 index has surged 8% in 2026 so far, significantly outperforming the S&P 500's 1.4%, indicating robust performance from small-cap companies and attracting investor interest.
- ETF Performance: The Vanguard Russell 2000 ETF (VTWO), which tracks the index, is also expected to benefit from this strong performance, with momentum likely to persist throughout 2026, further boosting investor confidence.
- Sector Distribution: Companies in the Russell 2000 span 11 different sectors, with healthcare comprising 18.8%, showcasing the diversity of its portfolio, especially compared to the S&P 500 where tech dominates at 32.9%.
- Monetary Policy Impact: The Federal Reserve has cut interest rates six times since September 2024, with two more cuts predicted in 2026, directly enhancing profitability for about 32% of Russell 2000 companies and driving future growth.
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