IonQ Just Nabbed 5 New Quantum Computing Patents. Is IONQ Stock a Buy, Sell, or Hold Now?
Investing in innovative companies is a proven strategy for generating outsized gains over time. Generally, companies that invest in research and development are positioned to benefit from multiple competitive moats and a first-mover advantage.
One way to identify and shortlist innovative companies is to examine new patent grants. According to data from Quiver Quantitative, IonQ (IONQ), a quantum computing company, received five new patents in February 2025.
IonQ, which develops general-purpose quantum computing systems, has a market cap of $6.5 billion. Quantum computing stocks, including IonQ, have been volatile recently, especially after Alphabet's (GOOGL) (GOOG) breakthrough with its Willow chip in December 2024.
In the past year, IONQ stock has returned 132% to shareholders. However, it currently trades 44% below its 52-week high, allowing you to buy the dip. Let's see if IONQ stock is a buy, sell, or hold right now.
IonQ Reports Record Sales in 2024
Earlier this week, IonQ reported its strongest financial results to date and announced a major acquisition that positions it to dominate the quantum networking space. The trapped-ion quantum computing pioneer reported record revenue of $43.1 million for 2024, exceeding the high end of its guidance range and representing 95% annual growth compared to the previous year. Fourth-quarter revenue reached $11.7 million, also surpassing the company's projections.
'We had IonQ's best year yet in 2024, exceeding the high ends of both our bookings and revenue guidance ranges and making truly significant technical strides,' said Peter Chapman, IonQ's Executive Chair.
In a move that expands its market position, IonQ announced it reached a definitive agreement to acquire a controlling stake in ID Quantique (IDQ), a global leader in quantum-safe networking and sensing headquartered in Geneva, Switzerland. The all-stock transaction will substantially bolster IonQ's patent portfolio, bringing the total count of granted and pending patents under IonQ's control to nearly 900.
The acquisition aligns with IonQ's strategic focus on quantum networking, which it views as critical infrastructure for scaling its quantum computers. Analysts from McKinsey estimate the quantum networking market will grow to between $10 and $15 billion by 2035, potentially matching or exceeding the quantum computing industry itself. "This strategic transaction and the expertise of ID Quantique furthers IonQ's role as a global leader in next generation secure communications," Chapman said.
IonQ also partnered with SK Telecom, South Korea's largest wireless telecommunications operator. This partnership is expected to enhance IonQ's quantum technology distribution across Asia.
IonQ's commercial momentum continues to build. In 2024, it achieved $95.6 million in new bookings, including major contracts with the Air Force Research Lab and a landmark partnership with the University of Maryland valued at up to $1 billion.
What's Next for IonQ Stock?
For 2025, IonQ projects revenue between $75 million and $95 million, representing potential growth of up to 120% at the high end of guidance. Despite its strong revenue growth in 2024, IonQ reported a net loss of $331.6 million for 2024, though its adjusted EBITDA loss of $107.2 million was narrower than expected.
IonQ maintains a strong balance sheet with $363.8 million in cash and investments. It also announced an 'at-the-market' equity offering program that would allow it to sell up to $500 million in common stock. This could potentially provide capital for its ambitious growth plans.
Analysts expect IonQ to increase sales to $83 million in 2025 and $153 million in 2026. Comparatively, losses per share are forecast to narrow from $0.95 to $0.86 in this period.
Out of the six analysts covering IonQ stock, three recommend a 'Strong Buy,' one recommends a 'Moderate Buy,' and two recommend a 'Hold.' The average analyst target price for the tech stock is $39.67, indicating a 30% upside from current levels.
With its leading trapped-ion technology, expanding global footprint, and strategic push into quantum networking, IonQ is positioning itself at the forefront of what many analysts predict will be a transformative industry over the next decade.
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IONQ Cash and Short-Term Investments (Quarterly) data by YCharts. I don't necessarily see it that way, though. For starters, quantum computing is far from a commercialized technology. For this reason alone, IonQ's revenue growth is likely going to be both unpredictable and fairly mundane over the next several years, at least. Furthermore, the capital expenditure (capex) and research and development (R&D) costs needed to develop quantum computing is immense. Nvidia, Amazon, Alphabet, and Microsoft are also aggressively investing in this space, so I think IonQ is going to have a hard time keeping up with the competition given its limited financial resources relative to big tech. Now that the stock is trading back near its highs, I suspect the company may issue shares at its current overextended valuation in an effort to raise capital. If management does do this and you buy the stock at current prices, then you will be diluted. 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