Shares of IonQ (IONQ) may be trading at steep valuations, but that shouldn’t stop the quantum computing hardware company from eventually growing into that valuation as its highly coveted technology delivers mainstream applications in medicine, materials science, and artificial intelligence.
That’s one of the main takeaways from a recent Cantor Fitzgerald report, which assigned IonQ stock an “Overweight” rating.
Quantum computing is “one of the most highly coveted technical milestones with enormous economic implications,” wrote Cantor Fitzgerald analyst Troy Jensen.
Companies at the forefront of this breakthrough are best positioned to benefit, Jensen noted.
However, he cautioned that real-world applications of quantum technology are still likely years away, meaning investors will probably focus more on IonQ’s technical milestones than on its near-term financial results.
This has largely been the case throughout IonQ’s trading history. In 2024, the company generated $43.1 million in revenue, an increase of 95% from the previous year. However, its full-year net loss reached $331.6 million.
Based on his analysis, Jensen set a price target of $45 for IonQ stock, which is roughly in line with its current value.
IonQ shares have rallied more than 11% over the past month, recovering much of the ground lost earlier this year. At current levels, IonQ has a market capitalization of approximately $11.5 billion.
IonQ acquires U.K. startup in billion-dollar deal
IonQ made headlines last month when it announced the acquisition of Oxford Ionics, a U.K.-based quantum startup, for approximately $1.1 billion.
The deal specifically targets Oxford’s chip technology, which could help IonQ achieve significant technical breakthroughs in quantum tech.
“We believe the advantages of our combined technologies will set a new standard within quantum computing and deliver superior value for our customers through market-leading enterprise applications,” said Niccolo De Masi, IonQ’s CEO.
The merger is expected to help IonQ dramatically scale its systems, expanding from 256 qubits in 2026 to as many as 2 million qubits by 2030.
Qubits, or quantum bits, are the fundamental building blocks of quantum computing systems. Unlike traditional bits, qubits can exist in multiple states simultaneously, allowing quantum systems to solve complex calculations far more efficiently than traditional computers.
This technology is expected to be transformative for industries such as drug discovery, materials science, and artificial intelligence.
As Investors Observer reported, IonQ’s CEO has previously stated that he aims to make the company the “800-pound gorilla” of the quantum computing industry, highlighting its portfolio of 933 patents, which includes 400 in networking and 500 in computing.
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