IonQ Faces Stiff Competition in Quantum Computing, $72 Billion Market by 2035
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2026
0mins
Should l Buy IONQ?
Source: Yahoo Finance
- Market Uncertainty: McKinsey projects a potential quantum computing market opportunity of $72 billion by 2035, with a low estimate of $28 billion, highlighting the high uncertainty surrounding the industry's future, necessitating cautious risk assessment by investors.
- Intense Competition: As a pure-play quantum computing company, IonQ faces fierce competition from tech giants like Alphabet, Microsoft, and IBM, which leverage their substantial financial resources to invest heavily in quantum computing, increasing IonQ's survival pressure.
- Severe Cash Burn: IonQ has approximately $1 billion in funding for operations and R&D, which pales in comparison to Alphabet's over $150 billion cash flow from operations in the past year, potentially jeopardizing its long-term viability.
- Insufficient Technology Maturity: While IonQ has set a new record for quantum computing accuracy, its error rates are still far from commercial viability, and no quantum products have yet demonstrated clear advantages over existing technologies, posing significant challenges for future development.
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Analyst Views on IONQ
Wall Street analysts forecast IONQ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IONQ is 75.91 USD with a low forecast of 47.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 30.430
Low
47.00
Averages
75.91
High
100.00
Current: 30.430
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.
IonQ's Quantum Computing Technology Shows Great Potential
- Market Potential: IonQ boasts a market cap of $13 billion with a current stock price of $35.38, and despite an 8.04% drop today, its technological potential in quantum computing continues to attract investor interest.
- Technological Advantage: Utilizing a trapped-ion approach, IonQ achieves a 99.99% two-qubit gate fidelity rate, significantly surpassing competitors and indicating its leadership in quantum computing accuracy.
- Acquisition Strategy: By acquiring Oxford Ionics and SkyWater Technology, IonQ enhances its control over the quantum computing ecosystem, with the former improving chip stability and the latter providing priority access to advanced quantum chip fabrication technology.
- Future Outlook: Although commercialization of quantum computing is still years away, IonQ's technological advancements and acquisition strategies position it favorably in the industry, making it a stock worth considering for small speculative investments aimed at long-term gains.
See More
Analysis of Potential Stocks in Quantum Computing
- IonQ's Market Leadership: IonQ (IONQ) has seen a 14.98% increase, with a current price of $4.56 and a market cap of $12 billion, leveraging its unique trapped ion qubit technology to significantly reduce error rates, which, despite slower processing speeds, positions it well for launching a commercially viable product and enhancing its competitive edge.
- D-Wave's Unique Strategy: D-Wave Quantum (QBTS) has risen by 20.19%, with a current price of $3.48 and a market cap of $7.7 billion, focusing on quantum annealing technology to address optimization problems, which may carve out a niche market opportunity despite competition from general-purpose quantum computers.
- High-Risk, High-Reward Investment Landscape: While both IonQ and D-Wave have the potential for substantial returns, the intense competition in the quantum computing sector poses risks of bankruptcy or acquisition for many firms, necessitating careful risk-reward assessments by investors.
- Alternative Quantum Computing ETF: For investors wary of individual stock risks, considering a quantum computing ETF could provide broad exposure to nearly all publicly traded companies in the sector, offering potentially significant returns as useful quantum computing systems are developed, albeit likely lower than direct investments in IonQ or D-Wave.
See More
Rigetti Computing Faces Competitive Pressure in Quantum Sector
- Stock Volatility: Rigetti Computing has garnered attention over the past year, yet its stock has plummeted approximately 70% from its all-time high, indicating a significant decline in market confidence regarding its future prospects, prompting investors to reassess its investment value.
- Competitive Landscape: In the quantum computing sector, Rigetti faces fierce competition from companies like IonQ, which is set to release a 256-qubit system in 2026, highlighting Rigetti's disadvantages in technological advancement and market share.
- Technical Challenges: Rigetti's 108-qubit system is lagging in achieving 99.5% two-qubit gate fidelity, while its nine-qubit system achieves 99.7%; however, insufficient performance in larger systems may hinder its market position and future funding capabilities.
- Investment Risks: Should Rigetti fail to accelerate its technological progress, it risks further stock declines or even bankruptcy, which poses a negative signal for investors, as the market's sell-off reflects concerns over its future performance.
See More
Quantum Computing Market Poised for Growth
- Market Potential: Research from McKinsey indicates that the quantum technology market could reach nearly $100 billion annually over the next decade, with quantum computing being the largest segment, highlighting significant investment appeal.
- Microsoft's Quantum Strategy: Microsoft's development of a quantum processing chip aims to scale quantum computer systems to 1 million qubits, far exceeding the current maximum of over 6,000 qubits, which could unlock new capabilities for its cloud and AI businesses.
- IBM's Quantum Development: IBM is a leading player in quantum computing, having generated over $1 billion from this sector, despite it being a minor part of its overall business, showcasing its commercial potential in the field.
- Investment Opportunities: Given IonQ's high valuation and limited success, investors should consider Microsoft and IBM as strong contenders in the quantum computing space, potentially benefiting from future technological advancements.
See More
Quantum Computing Market Poised for Growth
- Market Potential: Research from McKinsey & Company indicates that the quantum technology market could reach nearly $100 billion annually over the next decade, with quantum computing being the largest segment, highlighting the investment appeal and growth potential in this field.
- Microsoft's Strategic Positioning: Microsoft is developing a quantum processing chip aimed at scaling quantum computer systems to 1 million qubits, while today's largest quantum computers barely exceed 6,000 qubits, which could significantly enhance its cloud services and AI capabilities.
- IBM's Market Leadership: IBM has already generated over $1 billion in revenue from quantum computing, and although it currently represents a minor part of its business, its open-source software development kit, Qiskit, has been downloaded over 13 million times, showcasing its influence and technological accumulation in the industry.
- Investor Choices: Given IonQ's high valuation and limited success, investors may consider Microsoft and IBM as two companies with strong technological foundations and market potential in quantum computing, which are expected to play significant roles in the future quantum computing market.
See More
Rigetti Computing Stock Soars 1,420% Amid Quantum Hype
- Stock Surge: As of February 4, 2026, Rigetti Computing's share price has skyrocketed by 1,420% over the past 15 months, trailing D-Wave Quantum's 1,910% increase but significantly outperforming IonQ's 770% rise, reflecting strong investor confidence in the quantum computing sector.
- Market Expectations: Investors widely believe that quantum computing will disrupt various industries, including encryption, genetic analysis, and financial forecasting, with Rigetti aiming to offer a comprehensive suite of quantum computing solutions from hardware manufacturing to cloud services to attract deep-pocketed enterprise clients.
- Profitability Challenges: Despite its impressive stock performance, Rigetti faces significant unprofitability, with a staggering valuation ratio of 757 times sales, making it appear unreasonable compared to its market peers, indicating potential overvaluation risks.
- Future Outlook: While the stock may experience volatility due to market sentiment in the short term, the company's ongoing losses and reliance on stock issuance to sustain operations suggest a looming risk of price correction within the next one to two years.
See More
IonQ's Quantum Computing Technology Shows Great Potential
- Market Potential: IonQ boasts a market cap of $13 billion with a current stock price of $35.38, and despite an 8.04% drop today, its technological potential in quantum computing continues to attract investor interest.
- Technological Advantage: Utilizing a trapped-ion approach, IonQ achieves a 99.99% two-qubit gate fidelity rate, significantly surpassing competitors and indicating its leadership in quantum computing accuracy.
- Acquisition Strategy: By acquiring Oxford Ionics and SkyWater Technology, IonQ enhances its control over the quantum computing ecosystem, with the former improving chip stability and the latter providing priority access to advanced quantum chip fabrication technology.
- Future Outlook: Although commercialization of quantum computing is still years away, IonQ's technological advancements and acquisition strategies position it favorably in the industry, making it a stock worth considering for small speculative investments aimed at long-term gains.
See More
Analysis of Potential Stocks in Quantum Computing
- IonQ's Market Leadership: IonQ (IONQ) has seen a 14.98% increase, with a current price of $4.56 and a market cap of $12 billion, leveraging its unique trapped ion qubit technology to significantly reduce error rates, which, despite slower processing speeds, positions it well for launching a commercially viable product and enhancing its competitive edge.
- D-Wave's Unique Strategy: D-Wave Quantum (QBTS) has risen by 20.19%, with a current price of $3.48 and a market cap of $7.7 billion, focusing on quantum annealing technology to address optimization problems, which may carve out a niche market opportunity despite competition from general-purpose quantum computers.
- High-Risk, High-Reward Investment Landscape: While both IonQ and D-Wave have the potential for substantial returns, the intense competition in the quantum computing sector poses risks of bankruptcy or acquisition for many firms, necessitating careful risk-reward assessments by investors.
- Alternative Quantum Computing ETF: For investors wary of individual stock risks, considering a quantum computing ETF could provide broad exposure to nearly all publicly traded companies in the sector, offering potentially significant returns as useful quantum computing systems are developed, albeit likely lower than direct investments in IonQ or D-Wave.
See More
Rigetti Computing Faces Competitive Pressure in Quantum Sector
- Stock Volatility: Rigetti Computing has garnered attention over the past year, yet its stock has plummeted approximately 70% from its all-time high, indicating a significant decline in market confidence regarding its future prospects, prompting investors to reassess its investment value.
- Competitive Landscape: In the quantum computing sector, Rigetti faces fierce competition from companies like IonQ, which is set to release a 256-qubit system in 2026, highlighting Rigetti's disadvantages in technological advancement and market share.
- Technical Challenges: Rigetti's 108-qubit system is lagging in achieving 99.5% two-qubit gate fidelity, while its nine-qubit system achieves 99.7%; however, insufficient performance in larger systems may hinder its market position and future funding capabilities.
- Investment Risks: Should Rigetti fail to accelerate its technological progress, it risks further stock declines or even bankruptcy, which poses a negative signal for investors, as the market's sell-off reflects concerns over its future performance.
See More
Quantum Computing Market Poised for Growth
- Market Potential: Research from McKinsey indicates that the quantum technology market could reach nearly $100 billion annually over the next decade, with quantum computing being the largest segment, highlighting significant investment appeal.
- Microsoft's Quantum Strategy: Microsoft's development of a quantum processing chip aims to scale quantum computer systems to 1 million qubits, far exceeding the current maximum of over 6,000 qubits, which could unlock new capabilities for its cloud and AI businesses.
- IBM's Quantum Development: IBM is a leading player in quantum computing, having generated over $1 billion from this sector, despite it being a minor part of its overall business, showcasing its commercial potential in the field.
- Investment Opportunities: Given IonQ's high valuation and limited success, investors should consider Microsoft and IBM as strong contenders in the quantum computing space, potentially benefiting from future technological advancements.
See More
Quantum Computing Market Poised for Growth
- Market Potential: Research from McKinsey & Company indicates that the quantum technology market could reach nearly $100 billion annually over the next decade, with quantum computing being the largest segment, highlighting the investment appeal and growth potential in this field.
- Microsoft's Strategic Positioning: Microsoft is developing a quantum processing chip aimed at scaling quantum computer systems to 1 million qubits, while today's largest quantum computers barely exceed 6,000 qubits, which could significantly enhance its cloud services and AI capabilities.
- IBM's Market Leadership: IBM has already generated over $1 billion in revenue from quantum computing, and although it currently represents a minor part of its business, its open-source software development kit, Qiskit, has been downloaded over 13 million times, showcasing its influence and technological accumulation in the industry.
- Investor Choices: Given IonQ's high valuation and limited success, investors may consider Microsoft and IBM as two companies with strong technological foundations and market potential in quantum computing, which are expected to play significant roles in the future quantum computing market.
See More
Rigetti Computing Stock Soars 1,420% Amid Quantum Hype
- Stock Surge: As of February 4, 2026, Rigetti Computing's share price has skyrocketed by 1,420% over the past 15 months, trailing D-Wave Quantum's 1,910% increase but significantly outperforming IonQ's 770% rise, reflecting strong investor confidence in the quantum computing sector.
- Market Expectations: Investors widely believe that quantum computing will disrupt various industries, including encryption, genetic analysis, and financial forecasting, with Rigetti aiming to offer a comprehensive suite of quantum computing solutions from hardware manufacturing to cloud services to attract deep-pocketed enterprise clients.
- Profitability Challenges: Despite its impressive stock performance, Rigetti faces significant unprofitability, with a staggering valuation ratio of 757 times sales, making it appear unreasonable compared to its market peers, indicating potential overvaluation risks.
- Future Outlook: While the stock may experience volatility due to market sentiment in the short term, the company's ongoing losses and reliance on stock issuance to sustain operations suggest a looming risk of price correction within the next one to two years.
See More
