Why Is IonQ Stock Trading Higher On Friday?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 27 2024
0mins
Should l Buy IONQ?
Source: Benzinga
IonQ's Recent Contract and Growth: IonQ, Inc. has signed a $54.5 million contract with the U.S. Air Force Research Lab, reporting significant growth with nearly 100% compound annual growth in sales and 225% growth in recognized revenue. The company is on track to meet its annual guidance of $75-95 million in bookings.
Stock Performance and Future Prospects: Despite a 43% decline in stock value over the past year, IonQ shares rose by 16.20% to $9.36 following positive developments, including a $9 million agreement with the University of Maryland and recruitment of talent from major tech firms to enhance its quantum computing initiatives.
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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: 33.610
Low
47.00
Averages
75.91
High
100.00
Current: 33.610
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.
Norges Bank's Investment in IonQ Sparks Interest in Quantum Computing
- 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.
See More
Morgan Stanley Reduces IonQ Stake to 4.7%
- Stake Reduction Impact: Morgan Stanley Investment Management disclosed a reduction of its stake in IonQ to 4.7%, down from approximately 7% reported in August, which has now fallen below the 5% reporting threshold, potentially raising concerns about IonQ's future performance in the market.
- Funding Loss Allegations: Wolfpack Research alleged that IonQ lost funding for key Pentagon contracts, which accounted for up to 86% of its revenue from 2022 to 2024, resulting in a $54.6 million shortfall in expected bookings for 2025, further intensifying market skepticism regarding its financial health.
- Insider Stock Sales Issues: The short-seller also highlighted that IonQ insiders sold or authorized the sale of approximately $396.6 million in stock recently, which could raise investor concerns about corporate governance and transparency, thereby affecting market trust.
- Market Sentiment Shift: Despite IonQ's shares sliding 7% on Thursday and a cumulative decline of over 12% in the past three trading days, the stock rebounded by over 1% in overnight trading, indicating a divergence in market sentiment, with overall investor sentiment leaning bearish.
See More
IonQ's Quantum Computing Breakthroughs
- Technological Edge: IonQ's use of trapped-ion technology, which employs actual atoms to create qubits, results in greater stability compared to lab-made qubits, positioning the company as a leader in the quantum computing field.
- Acquisition Strategy: By acquiring Oxford Ionics, IonQ has not only improved its quantum computing accuracy but also enhanced qubit stability through the integration of microwave electronics, facilitating its commercialization efforts.
- High Precision Performance: Achieving a remarkable 99.99% two-gate fidelity, IonQ's high accuracy places it in a favorable position within the quantum computing market, showcasing its technological potential and competitive strength.
- Vertical Integration Plans: IonQ's pending acquisition of SkyWater Technology, a semiconductor foundry specializing in quantum computing, will enable vertical integration within the quantum ecosystem, enhancing its technological advantage in chip design.
See More
IonQ's Quantum Computing Market Prospects
- Technological Advantage: IonQ's focus on trapped ion systems utilizes tiny lasers to trap ions in vacuum chambers, addressing the size and power consumption issues of traditional quantum computers, enabling operation at room temperature and enhancing market competitiveness.
- Low Error Rates: IonQ's trapped ion qubits exhibit consistency and predictability, achieving gate fidelity levels of up to 99.99%, significantly surpassing industry peers, which enhances computational accuracy and builds customer trust.
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is projected to grow at a CAGR of 34.8% from 2025 to 2032, positioning IonQ to capitalize on this growth with its innovative technology and product offerings.
- Revenue Expectations: Analysts expect IonQ's annual revenue to nearly triple from 2025 to 2028, reaching $317 million, and although its stock is currently valued at 38 times its projected 2027 sales, there remains substantial room for growth as the market expands.
See More
IonQ's Trapped Ion Technology Offers Competitive Edge
- Technological Advantage: IonQ's trapped ion technology utilizes lasers to confine ions in miniaturized vacuum chambers, allowing operation at room temperature, which makes it more compact and reduces energy consumption and operational costs compared to traditional electron-driven systems.
- High Fidelity: IonQ's qubits, being identical atoms, demonstrate more consistent behavior than electron-driven superconducting loops, enabling it to achieve gate fidelity levels of up to 99.99% in its two-qubit systems, significantly enhancing computational accuracy.
- Market Potential: According to Fortune Business Insights, the quantum computing market is expected to grow at a CAGR of 34.8% from 2025 to 2032, with IonQ's revenue projected to nearly triple during this period, reaching $317 million as it scales its business.
- Product Diversity: IonQ currently sells four quantum computing systems, including its flagship Forte system and the upcoming Tempo system, while also offering cloud-based quantum computing services, which enhances its market competitiveness and customer base.
See More
IonQ Stock Faces Clash of Bearish Pressure and Institutional Support
- Death Cross Signal: IonQ stock has formed a death cross as the 50-day moving average fell below the 200-day moving average after weeks of heavy selling pressure, indicating potential downside risk, while the stock remains down over 30% year-to-date, attracting active traders' attention.
- Norwegian Sovereign Fund Investment: Norges Bank disclosed a roughly $200 million stake in IonQ in its latest 13F filing, with Wedbush analysts calling this a ‘watershed moment’ for quantum computing, indicating that institutional investors are treating the sector as a legitimate asset class, thereby enhancing credibility for both IonQ and the broader quantum space.
- Short Seller Claims and Rebuttal: Following a critical report from Wolfpack Research alleging undisclosed revenue issues and the loss of a Pentagon contract, IonQ's shares fell over 14% in a single session; however, IonQ rejected these claims as meritless and reiterated expectations to reach the high end of its revenue guidance of $106 million to $110 million.
- Market Tension: The stock's performance reflects a tension between market skepticism and institutional conviction, as bearish technicals, sovereign wealth backing, and short-seller drama converge, placing the quantum trade at a critical turning point.
See More
Norges Bank's Investment in IonQ Sparks Interest in Quantum Computing
- 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.
See More
Morgan Stanley Reduces IonQ Stake to 4.7%
- Stake Reduction Impact: Morgan Stanley Investment Management disclosed a reduction of its stake in IonQ to 4.7%, down from approximately 7% reported in August, which has now fallen below the 5% reporting threshold, potentially raising concerns about IonQ's future performance in the market.
- Funding Loss Allegations: Wolfpack Research alleged that IonQ lost funding for key Pentagon contracts, which accounted for up to 86% of its revenue from 2022 to 2024, resulting in a $54.6 million shortfall in expected bookings for 2025, further intensifying market skepticism regarding its financial health.
- Insider Stock Sales Issues: The short-seller also highlighted that IonQ insiders sold or authorized the sale of approximately $396.6 million in stock recently, which could raise investor concerns about corporate governance and transparency, thereby affecting market trust.
- Market Sentiment Shift: Despite IonQ's shares sliding 7% on Thursday and a cumulative decline of over 12% in the past three trading days, the stock rebounded by over 1% in overnight trading, indicating a divergence in market sentiment, with overall investor sentiment leaning bearish.
See More
IonQ's Quantum Computing Breakthroughs
- Technological Edge: IonQ's use of trapped-ion technology, which employs actual atoms to create qubits, results in greater stability compared to lab-made qubits, positioning the company as a leader in the quantum computing field.
- Acquisition Strategy: By acquiring Oxford Ionics, IonQ has not only improved its quantum computing accuracy but also enhanced qubit stability through the integration of microwave electronics, facilitating its commercialization efforts.
- High Precision Performance: Achieving a remarkable 99.99% two-gate fidelity, IonQ's high accuracy places it in a favorable position within the quantum computing market, showcasing its technological potential and competitive strength.
- Vertical Integration Plans: IonQ's pending acquisition of SkyWater Technology, a semiconductor foundry specializing in quantum computing, will enable vertical integration within the quantum ecosystem, enhancing its technological advantage in chip design.
See More
IonQ's Quantum Computing Market Prospects
- Technological Advantage: IonQ's focus on trapped ion systems utilizes tiny lasers to trap ions in vacuum chambers, addressing the size and power consumption issues of traditional quantum computers, enabling operation at room temperature and enhancing market competitiveness.
- Low Error Rates: IonQ's trapped ion qubits exhibit consistency and predictability, achieving gate fidelity levels of up to 99.99%, significantly surpassing industry peers, which enhances computational accuracy and builds customer trust.
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is projected to grow at a CAGR of 34.8% from 2025 to 2032, positioning IonQ to capitalize on this growth with its innovative technology and product offerings.
- Revenue Expectations: Analysts expect IonQ's annual revenue to nearly triple from 2025 to 2028, reaching $317 million, and although its stock is currently valued at 38 times its projected 2027 sales, there remains substantial room for growth as the market expands.
See More
IonQ's Trapped Ion Technology Offers Competitive Edge
- Technological Advantage: IonQ's trapped ion technology utilizes lasers to confine ions in miniaturized vacuum chambers, allowing operation at room temperature, which makes it more compact and reduces energy consumption and operational costs compared to traditional electron-driven systems.
- High Fidelity: IonQ's qubits, being identical atoms, demonstrate more consistent behavior than electron-driven superconducting loops, enabling it to achieve gate fidelity levels of up to 99.99% in its two-qubit systems, significantly enhancing computational accuracy.
- Market Potential: According to Fortune Business Insights, the quantum computing market is expected to grow at a CAGR of 34.8% from 2025 to 2032, with IonQ's revenue projected to nearly triple during this period, reaching $317 million as it scales its business.
- Product Diversity: IonQ currently sells four quantum computing systems, including its flagship Forte system and the upcoming Tempo system, while also offering cloud-based quantum computing services, which enhances its market competitiveness and customer base.
See More
IonQ Stock Faces Clash of Bearish Pressure and Institutional Support
- Death Cross Signal: IonQ stock has formed a death cross as the 50-day moving average fell below the 200-day moving average after weeks of heavy selling pressure, indicating potential downside risk, while the stock remains down over 30% year-to-date, attracting active traders' attention.
- Norwegian Sovereign Fund Investment: Norges Bank disclosed a roughly $200 million stake in IonQ in its latest 13F filing, with Wedbush analysts calling this a ‘watershed moment’ for quantum computing, indicating that institutional investors are treating the sector as a legitimate asset class, thereby enhancing credibility for both IonQ and the broader quantum space.
- Short Seller Claims and Rebuttal: Following a critical report from Wolfpack Research alleging undisclosed revenue issues and the loss of a Pentagon contract, IonQ's shares fell over 14% in a single session; however, IonQ rejected these claims as meritless and reiterated expectations to reach the high end of its revenue guidance of $106 million to $110 million.
- Market Tension: The stock's performance reflects a tension between market skepticism and institutional conviction, as bearish technicals, sovereign wealth backing, and short-seller drama converge, placing the quantum trade at a critical turning point.
See More
