Rigetti Computing, Quantum Stocks Soar On Project Stargate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 24 2025
0mins
Should l Buy IONQ?
Source: Benzinga
Project Stargate Announcement: Rigetti Computing's shares surged 42% following President Trump's announcement of a $500 billion AI investment initiative, Project Stargate, which includes immediate investments of $100 billion and plans for additional funding over four years.
Impact on Quantum Computing: The initiative aims to enhance AI infrastructure through new data centers and advanced computing systems, benefiting quantum computing companies like Rigetti and IonQ, as they are positioned to meet the rising computational demands associated with increased AI adoption.
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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: 45.750
Low
47.00
Averages
75.91
High
100.00
Current: 45.750
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 Set to Announce Q1 Earnings Amid Bullish Analyst Sentiment
- Earnings Expectations: IonQ is projected to report Q1 EPS of -$0.52 on revenue of $49.73 million, with Wall Street anticipating full-year 2026 revenue guidance between $225 million and $245 million, indicating a continued expansion of its customer base.
- Analyst Optimism: Morgan Stanley raised IonQ's price target from $38 to $47, expecting the company to provide stronger-than-expected revenue guidance for 2026, reflecting confidence in its new contracts and acquisitions.
- Technical Recognition: Wedbush analysts noted that IonQ has been recognized by Nvidia as an early adopter of Ising Calibration, suggesting that its trapped-ion architecture is acknowledged as production-ready and technically credible by a major industry player, thereby deepening the partnership with Nvidia.
- Market Performance: IonQ's shares have gained approximately 1.2% year-to-date, underperforming the S&P 500's nearly 6% increase, indicating a cautious market sentiment regarding its future growth potential.
See More
Investigations into Multiple Biotech Company Mergers
- Esperion Acquisition Investigation: Esperion Therapeutics is set to be acquired by ARCHIMED for $3.16 per share in cash, with potential contingent milestone payments of up to $100 million, raising concerns about whether the board breached fiduciary duties by failing to ensure fair pricing for shareholders.
- Sila Realty Acquisition Scrutiny: Sila Realty Trust will be acquired by Blue Owl Capital for $30.38 per share in an all-cash deal valued at approximately $2.4 billion, with investigations questioning whether the board adequately protected shareholder interests during the transaction process, potentially affecting fair value.
- Lisata Therapeutics Merger Investigation: Lisata Therapeutics is being acquired by Kuva Labs for $4.00 per share in cash, along with two non-tradeable rights, prompting investigations into whether the board conducted a fair process, which could impact shareholder benefits.
- SkyWater Technology Acquisition Review: SkyWater is to be acquired by IonQ for $35.00 per share in a cash-and-stock deal valued at around $1.8 billion, with investigations focusing on whether the board fulfilled its fiduciary duties, particularly as the deal price is below the company's 52-week high of $36.27.
See More
Nvidia Reshapes Quantum Computing Landscape
- Stock Rebound: Following Nvidia's announcement of the new quantum computing model Ising, quantum start-ups saw significant stock increases, with Rigetti rising 13.3%, IonQ up 21%, and D-Wave climbing 22.6%, indicating a renewed market confidence in quantum technology.
- Collaboration Opportunities: Nvidia's Ising model will provide an open-source and AI-powered platform for quantum computing, with IonQ and Rigetti actively partnering with Nvidia, enhancing their technological capabilities and potentially accelerating the adoption of quantum computing.
- Market Outlook: As the world's largest company by market cap, Nvidia's investment in quantum computing signals strong business potential, attracting attention from giants like Alphabet and IBM, which will provide quantum start-ups with greater support and resources in a competitive landscape.
- Technology Integration: Nvidia's Ising model positions AI as the operating system for quantum machines, improving the usability and reliability of quantum computing, thereby enhancing the market competitiveness of quantum start-ups and driving industry growth.
See More
Quantum Computing Market Poised for Growth
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is expected to expand at a 30.6% CAGR from 2026 to 2034, indicating significant investment opportunities, particularly for early movers in this nascent industry.
- IBM's Steady Performance: Under Arvind Krishna's leadership, IBM's revenue and EPS grew at CAGRs of 4% and 12%, respectively, from 2020 to 2025, with expectations of continued 5% growth from 2025 to 2028, showcasing strong development in its hybrid cloud and AI sectors.
- IonQ's Innovative Edge: IonQ addresses the accuracy and cost issues of traditional quantum computers with its trapped-ion systems, with revenue from its cloud platform surging from $2 million in 2021 to $130 million by 2025, and projected to exceed $600 million by 2028, reflecting robust market demand.
- Investment Risks and Opportunities: Although IonQ's stock appears expensive at 28x 2028 sales and it is not yet profitable, the flexibility and accuracy of its systems could attract more customers, particularly in the government sector, indicating significant investment opportunities as the quantum market expands.
See More
Morgan Stanley Raises Price Targets for Multiple Semiconductors
- Price Target Increases: Morgan Stanley raised GlobalFoundries' price target from $47 to $58, reflecting strong market demand for semiconductors and expectations of price increases, which could enhance investor confidence and drive stock price appreciation.
- Strong AMD Outlook: AMD's price target was increased from $255 to $360, with expectations that its upcoming Q1 earnings report will demonstrate robust performance, further solidifying its leadership position in the semiconductor industry.
- Microchip Technology Prospects: Microchip Technology's price target was raised from $69 to $92, as strong performance in industrial and data center markets is expected to benefit the company in FY25, particularly with 30% of its revenue coming from industrial sectors.
- IonQ Quantum Computing Potential: IonQ's price target was increased from $38 to $47, with expectations of stronger-than-expected 2026 revenue guidance due to recent acquisitions and new contracts with research institutions, highlighting growth potential in the quantum computing sector.
See More
Morgan Stanley Raises IonQ Price Target to $47
- Price Target Increase: Morgan Stanley raised IonQ's price target from $37 to $47 while maintaining an Equal Weight rating, indicating growing market confidence in IonQ's commercialization path despite its high current valuation.
- Strong Financial Performance: IonQ reported Q4 2025 revenue of $61.89 million, a 429% year-over-year increase, surpassing the consensus estimate of $40.26 million, with full-year revenue reaching $130.02 million, up 202%, showcasing robust growth momentum.
- Strategic Milestones: IonQ is pursuing the acquisition of SkyWater Technology and has secured a contract with QuantumBasel exceeding $60 million, along with being selected for DARPA's Quantum Benchmarking Initiative, underscoring its leadership in the quantum computing sector.
- Market Competition Pressure: Although IonQ shares trade near $48 with a market cap of approximately $16.94 billion, its 130x price-to-sales ratio and -487.4% operating margin highlight challenges in the commercialization process compared to competitors like Google and IBM.
See More
IonQ Set to Announce Q1 Earnings Amid Bullish Analyst Sentiment
- Earnings Expectations: IonQ is projected to report Q1 EPS of -$0.52 on revenue of $49.73 million, with Wall Street anticipating full-year 2026 revenue guidance between $225 million and $245 million, indicating a continued expansion of its customer base.
- Analyst Optimism: Morgan Stanley raised IonQ's price target from $38 to $47, expecting the company to provide stronger-than-expected revenue guidance for 2026, reflecting confidence in its new contracts and acquisitions.
- Technical Recognition: Wedbush analysts noted that IonQ has been recognized by Nvidia as an early adopter of Ising Calibration, suggesting that its trapped-ion architecture is acknowledged as production-ready and technically credible by a major industry player, thereby deepening the partnership with Nvidia.
- Market Performance: IonQ's shares have gained approximately 1.2% year-to-date, underperforming the S&P 500's nearly 6% increase, indicating a cautious market sentiment regarding its future growth potential.
See More
Investigations into Multiple Biotech Company Mergers
- Esperion Acquisition Investigation: Esperion Therapeutics is set to be acquired by ARCHIMED for $3.16 per share in cash, with potential contingent milestone payments of up to $100 million, raising concerns about whether the board breached fiduciary duties by failing to ensure fair pricing for shareholders.
- Sila Realty Acquisition Scrutiny: Sila Realty Trust will be acquired by Blue Owl Capital for $30.38 per share in an all-cash deal valued at approximately $2.4 billion, with investigations questioning whether the board adequately protected shareholder interests during the transaction process, potentially affecting fair value.
- Lisata Therapeutics Merger Investigation: Lisata Therapeutics is being acquired by Kuva Labs for $4.00 per share in cash, along with two non-tradeable rights, prompting investigations into whether the board conducted a fair process, which could impact shareholder benefits.
- SkyWater Technology Acquisition Review: SkyWater is to be acquired by IonQ for $35.00 per share in a cash-and-stock deal valued at around $1.8 billion, with investigations focusing on whether the board fulfilled its fiduciary duties, particularly as the deal price is below the company's 52-week high of $36.27.
See More
Nvidia Reshapes Quantum Computing Landscape
- Stock Rebound: Following Nvidia's announcement of the new quantum computing model Ising, quantum start-ups saw significant stock increases, with Rigetti rising 13.3%, IonQ up 21%, and D-Wave climbing 22.6%, indicating a renewed market confidence in quantum technology.
- Collaboration Opportunities: Nvidia's Ising model will provide an open-source and AI-powered platform for quantum computing, with IonQ and Rigetti actively partnering with Nvidia, enhancing their technological capabilities and potentially accelerating the adoption of quantum computing.
- Market Outlook: As the world's largest company by market cap, Nvidia's investment in quantum computing signals strong business potential, attracting attention from giants like Alphabet and IBM, which will provide quantum start-ups with greater support and resources in a competitive landscape.
- Technology Integration: Nvidia's Ising model positions AI as the operating system for quantum machines, improving the usability and reliability of quantum computing, thereby enhancing the market competitiveness of quantum start-ups and driving industry growth.
See More
Quantum Computing Market Poised for Growth
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is expected to expand at a 30.6% CAGR from 2026 to 2034, indicating significant investment opportunities, particularly for early movers in this nascent industry.
- IBM's Steady Performance: Under Arvind Krishna's leadership, IBM's revenue and EPS grew at CAGRs of 4% and 12%, respectively, from 2020 to 2025, with expectations of continued 5% growth from 2025 to 2028, showcasing strong development in its hybrid cloud and AI sectors.
- IonQ's Innovative Edge: IonQ addresses the accuracy and cost issues of traditional quantum computers with its trapped-ion systems, with revenue from its cloud platform surging from $2 million in 2021 to $130 million by 2025, and projected to exceed $600 million by 2028, reflecting robust market demand.
- Investment Risks and Opportunities: Although IonQ's stock appears expensive at 28x 2028 sales and it is not yet profitable, the flexibility and accuracy of its systems could attract more customers, particularly in the government sector, indicating significant investment opportunities as the quantum market expands.
See More
Morgan Stanley Raises Price Targets for Multiple Semiconductors
- Price Target Increases: Morgan Stanley raised GlobalFoundries' price target from $47 to $58, reflecting strong market demand for semiconductors and expectations of price increases, which could enhance investor confidence and drive stock price appreciation.
- Strong AMD Outlook: AMD's price target was increased from $255 to $360, with expectations that its upcoming Q1 earnings report will demonstrate robust performance, further solidifying its leadership position in the semiconductor industry.
- Microchip Technology Prospects: Microchip Technology's price target was raised from $69 to $92, as strong performance in industrial and data center markets is expected to benefit the company in FY25, particularly with 30% of its revenue coming from industrial sectors.
- IonQ Quantum Computing Potential: IonQ's price target was increased from $38 to $47, with expectations of stronger-than-expected 2026 revenue guidance due to recent acquisitions and new contracts with research institutions, highlighting growth potential in the quantum computing sector.
See More
Morgan Stanley Raises IonQ Price Target to $47
- Price Target Increase: Morgan Stanley raised IonQ's price target from $37 to $47 while maintaining an Equal Weight rating, indicating growing market confidence in IonQ's commercialization path despite its high current valuation.
- Strong Financial Performance: IonQ reported Q4 2025 revenue of $61.89 million, a 429% year-over-year increase, surpassing the consensus estimate of $40.26 million, with full-year revenue reaching $130.02 million, up 202%, showcasing robust growth momentum.
- Strategic Milestones: IonQ is pursuing the acquisition of SkyWater Technology and has secured a contract with QuantumBasel exceeding $60 million, along with being selected for DARPA's Quantum Benchmarking Initiative, underscoring its leadership in the quantum computing sector.
- Market Competition Pressure: Although IonQ shares trade near $48 with a market cap of approximately $16.94 billion, its 130x price-to-sales ratio and -487.4% operating margin highlight challenges in the commercialization process compared to competitors like Google and IBM.
See More
