Shares of quantum computing company IonQ (IONQ) gained 4.3% on October 9, fueled by a wave of bullish sentiment in the sector. The rise comes amid a series of positive developments for the company. On October 7, IonQ completed its acquisition of Vector Atomic, a specialist in advanced quantum sensors for positioning, navigation, and timing (PNT) applications. This acquisition marks IonQ’s strategic entry into the growing quantum sensing market, a field expected to see significant defense, aerospace, and autonomous vehicle applications.
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Moreover, B. Riley Securities’ top analyst Craig Ellis reiterated his Buy rating on the stock with a Street-high price target of $100, implying 29% upside potential from current levels. Ellis is a five-star analyst on TipRanks, ranking #92 out of 10,081 analysts tracked. He has a 57% success rate and an impressive average return per rating of 31.20%.
Ellis Sees Massive Potential for IonQ
Ellis is highly optimistic about the long-term prospects of quantum computing, projecting massive growth once the technology reaches full commercial maturity. He recently raised his IONQ price target from $75 to $100, citing a similar bullish thesis. Ellis highlighted that progress in quantum technology and its commercial use is moving faster than he had earlier expected.
Ellis noted that the Department of Energy’s (DOE) National Labs are now focusing more on turning scientific advancements into market-ready products. He sees signs that what was once cutting-edge experimental tech is quickly becoming practical and ready for commercial use.
Quantum Stock Rally Gains Momentum
Over the past five trading sessions, IonQ shares have surged 9.8%, and nearly 77% in the past month. Meanwhile, rivals Rigetti Computing (RGTI) and D-Wave Computing (QBTS) have posted even more dramatic gains, up 191% and 118%, respectively. This unprecedented surge has led some experts to believe that quantum computing companies could be in a bubble, waiting to explode soon.
Having said that, IonQ’s distinct technical approach sets it apart from its peers. While Rigetti and D-Wave are using the popular superconducting quantum computing approach, IonQ uses a trapped ion approach, which is more economical because it can be conducted at room temperature. In the traditional method, the ions need to be cooled down to absolute zero to use their quantum mechanics for calculations.
Furthermore, IonQ currently has a higher accuracy score, measured by the gate fidelity test. IonQ’s two-qubit gate fidelity is 99.97%, compared to Rigetti’s 99.5%. While the 0.47% difference may seem small, in quantum computing, even fractional improvements are difficult to achieve and can dramatically impact results.
Is IONQ Stock a Good Buy Right Now?
Not all analysts share Ellis’s level of enthusiasm for IonQ. On TipRanks, IONQ stock has a Moderate Buy consensus rating based on six Buys and three Hold ratings. The average IonQ price target of $61.63 implies 20.5% downside potential from current levels, while shares have already gained 690% over the past year.
