IonQ builds quantum system for South Korean research team
IonQ, Inc.(IONQ) said on Tuesday that it has finalized an agreement to deliver a 100-qubit quantum system to the Korea Institute of Science and Technology Information (KISTI), a government-funded research institution.
The company said that the agreement is a "key milestone" in the establishment of South Korea's National Quantum Computing Center of Excellence.
IonQ will be delivering its next-generation Tempo 100 quantum system that will be used to support KISTI's hybrid quantum-classical research initiatives.
The Tempo 100 system will be integrated into KISTI-6 , also called "HANKANG," the largest high-performance computing (HPC) cluster in Korea. This will create the first instance of hybrid quantum-classical onsite integration in South Korea.
IonQ noted that the compute cluster will be accessible through a private and secure cloud environment, allowing researchers, universities and enterprise users to access it remotely from across the country.
“This is a defining moment for both IonQ and South Korea, as we deploy our most advanced quantum systems to address the nation's most significant research and innovation challenges,” IonQ CEO Niccolo de Masi said in a statement. “
Our historic collaboration with KISTI will deliver the infrastructure, algorithms, and expertise to unlock long-term technological and economic value from IonQ leading quantum computers.”
KISTI is leading the development and operation of a quantum computing research platform that will support both academic and enterprise endeavors.
IonQ will be the primary quantum computing provider on the initiative, while South Korean-based Megazone Cloud will be the cloud and infrastructure provider.
"This collaboration with IonQ represents a significant leap forward in our commitment to advancing quantum computing in South Korea," Dr. Sik Lee, president of KISTI, said in a statement.
"By integrating IonQ's exceptional quantum systems into the next-generation national flagship supercomputer in KISTI, HANGANG, we are paving the way for groundbreaking research and innovation, creating practical solutions to real-world challenges in fields such as healthcare, finance, and materials science."
Wall Street grows bullish on IonQ's commercialization path
IonQ's stock fell 4.6% on Tuesday despite the news, but it has gained 23% YTD.
The decline in its shares was part of a broader pullback on quantum stocks after they surged by double digits on Monday. IonQ and Rigetti Computing (RGTI) were up about 10% on Monday, D-Wave Quantum (QUBTS) rose nearly 15% and Quantum Computing, Inc. gained 11%.
The exact reason for the rally was unclear, although some have pointed to it possibly being "window dressing," which is when institutional investors will rebalance their asset allocations at the end of a reporting period (quarter or fiscal year) by increasing exposure to well-performing stocks and trimming stocks that are struggling.
The action essentially enhances their portfolios before the numbers are publicly disclosed to clients and stakeholders.
But D-Wave fell 9.6% on Tuesday, Rigetti fell 6.7% and Quantum Computing dropped 4.6%.
Nonetheless, Wall Street has been growing bullish on IonQ's shares, with Jeffries analyst Kevin Garrigan initiating coverage earlier this month with a Buy rating and a $100 price target, which represents a roughly 64.4% upside.
"Platform scope is widening beyond compute via networking and sensing with ground/space integrations," Garrigan wrote. "Government and enterprise partnerships validate readiness and accelerate commercialization."
Meanwhile, Mizuho analyst Vijay Rakesh also initiated coverage this month with an Outperform rating and a price target of $90, which represents a 54.8% upside.
Rakesh said in a client note that the firm was "confident in IonQ's architecture and vertical integration for long-term leadership" in the quantum computing space.