IonQ Soars 35%, Eyes Nvidia-Like Dominance in Quantum Computing

• IonQ (IONQ) aims to lead the quantum-computing industry, drawing parallels to semiconductor giants like Nvidia (NVDA) and Broadcom (AVGO), while expanding globally through acquisitions like ID Quantique and partnerships such as with Einride.
• Despite a 453% y/y stock surge and today’s 35% jump to $45.29, IonQ remains unprofitable, reporting $7.6 million in Q1 revenue and a $32.3 million loss, with 2024 revenue projected between $75 million and $95 million.
• CEO Niccolo de Masi dismisses short-seller criticisms as baseless, positioning IonQ as a potential acquisition target for tech giants seeking quantum advantages in AI and machine learning.

IonQ (IONQ), a top player in quantum computing, is positioning itself as a dominant force in the emerging industry, with ambitions to mirror the success of semiconductor giants like Nvidia (NVDA) and Broadcom (AVGO). In an interview with Barron’s, CEO Niccolo de Masi boldly declared, “We’re in the business of quantum just like Nvidia and Broadcom are in the business of classical GPUs. I believe IonQ will be the Nvidia player.” With a market capitalization of $8.31 billion, IonQ stands as the largest publicly traded quantum-computing company, surpassing its closest peer, D-Wave Quantum (QBTS), valued at $4.49 billion. The company’s mission is clear: to build the world’s best quantum computers to tackle the most complex global challenges, offering a comprehensive stack of software, hardware, and cloud-accessible quantum-computing power.

Founded by Duke University professors Christopher Monroe and Jungsang Kim, IonQ emerged from nearly three decades of academic research into trapped-ion quantum computing. Since its public debut on the New York Stock Exchange in September 2021 via a special purpose acquisition company led by de Masi, IonQ has pursued an aggressive growth strategy. The College Park, Maryland-based company has expanded its global footprint through strategic acquisitions, including a controlling stake in Swiss quantum-cryptography firm ID Quantique, satellite company Capella, and Boston-based Lightsync, which develops technology to connect quantum computers. Additionally, IonQ announced a partnership with Swedish transport company Einride on Tuesday to explore quantum computing applications in fleet optimization and logistics. “We feel good about our competitive positioning because, at the end of the day, we are trying to drive ecosystem,” de Masi emphasized.

IonQ’s stock has been highly volatile since the start of the year, yet it has surged more than 450% over the past 12 months, reflecting strong investor interest and momentum. On Thursday, shares surged 35% to $45.29, outperforming the S&P 500 (SPX), which is down 0.42%. Other quantum-computing stocks also rallied, with Rigetti Computing (RGTI), D-Wave Quantum, and Quantum Computing (QUBT) rising 26%, 23%, and 15%, respectively. Despite its market success, IonQ has faced scrutiny. A March short report from Kerrisdale Capital accused the company of exaggerating past achievements and offering limited, error-prone systems, while a similar report targeted D-Wave a month later. De Masi dismissed these claims, stating, “They’ve all been baseless and nonsense,” and noting that the company’s progress and stock performance speak for themselves. In 2022, IonQ’s founders responded to a separate short report, refuting allegations of fraud as unfounded.

Financially, IonQ remains in the growth phase, with profitability still elusive—a common trait among quantum-computing firms. In its most recent first quarter, the company reported revenue of $7.6 million, flat year-over-year but down 35% sequentially, though it exceeded analyst expectations of $7.5 million. The quarterly loss narrowed to $32.3 million from $39.6 million a year earlier. For 2024, IonQ projects organic revenue between $75 million and $95 million, building on $100 million in cumulative bookings achieved in 2023. While former CEO Peter Chapman projected profitability by 2030 with sales nearing $1 billion, de Masi refrained from endorsing specific targets but expressed confidence in the company’s trajectory.

IonQ’s comprehensive operations, encompassing manufacturing, customer service, marketing, sales, engineering, physics, and applications teams, underscore its ambition to lead the quantum-computing ecosystem. De Masi envisions IonQ as a prime acquisition target for major tech firms, particularly those in artificial intelligence, stating, “I think someone will pay hundreds of billions of dollars to buy IonQ because it’s the right thing for their cloud.” He believes quantum computing will be critical for tech giants to maintain a competitive edge in AI and machine learning.

The quantum-computing industry remains speculative, with stocks often driven by sentiment and headlines. Events like Nvidia’s GTC Quantum Day have highlighted the sector’s challenges, including unclear timelines for commercial scalability, contributing to market volatility. Nevertheless, IonQ’s strategic acquisitions, partnerships, and technological advancements position it as a frontrunner in a field poised to redefine computing. As de Masi noted, competitors may follow, but IonQ aims to set the pace.

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