Latest news with #AmazonBraket
Business Insider
06-08-2025
- Business
- Business Insider
IONQ Stock Jumps as Amazon Discloses $36.7M Stake Ahead of IonQ's Q2 Results
Shares of IonQ (IONQ) jumped over 7% in after-hours trading yesterday after Amazon (AMZN) disclosed a $36.70 million stake in the quantum computing company. IONQ's stock had gained 5.4% during the regular trading session as investors anticipated its second-quarter results, scheduled for release after the markets close on August 6. Wall Street expects IonQ to report a diluted loss per share of $0.29 on sales of $17.23 million. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Amazon's significant investment in IonQ reflects the tech giant's strong conviction in quantum computing technology. After competing for dominance in artificial intelligence (AI), Amazon now seems to be preparing for leadership in the next major technological wave. According to a Bank of America strategist, quantum computing could reach practical use by 2033 and may ultimately have a greater impact on global markets than AI. Why Did Amazon Invest in IonQ? A 13F regulatory filing yesterday shows that the e-commerce giant purchased 854,207 shares of IonQ as of June 30, 2025. This stake totals $36.70 million based on the closing price of $42.97 on June 30. IONQ's stake is a new addition to Amazon's holdings, which also include stakes in AMD (AMD), Marvell Technology (MRVL), Rivian (RIVN), and Vital Farms (VITL). IonQ excels in trapped-ion quantum computing, which results in higher fidelity, lower error rates, and more reliable quantum operations compared to other qubit types offered by rivals such as D-Wave Computing (QBTS) and Rigetti (RGTI). IonQ's systems such as IonQ Forte and Forte Enterprise are already available on Amazon Braket, Amazon Web Services' (AWS) quantum cloud service platform. These tools are designed to achieve high-fidelity (accurate and reliable) operations in the fields of drug discovery and climate modeling. Amazon has also developed the Ocelot chip, which aims to reduce quantum error correction costs by 90%, making quantum chips five times cheaper than current methods and helping make practical quantum computing possible up to five years sooner. With its investment in IonQ, Amazon seeks to expand its presence in both the quantum hardware and cloud service markets. Is IonQ Stock a Good Buy? Analysts are highly optimistic about IonQ's long-term stock outlook. On TipRanks, IONQ stock has a Strong Buy consensus rating based on six Buys and one Hold rating. The average IonQ price target of $49.17 implies 17% upside potential from current levels. Over the past year, IONQ stock has surged more than 482%.
Yahoo
02-08-2025
- Business
- Yahoo
Can Rigetti's Ankaa System Show Real World Value Beyond the Lab?
Rigetti Computing RGTI is beginning to close the gap between cutting-edge hardware and practical application—and the Ankaa system is central to that effort. In July 2025, the company unveiled a 36-qubit chiplet-based architecture that achieved 99.5% median two-qubit gate fidelity, effectively halving error rates compared to prior generations. This follows Ankaa-3, which also hit that same fidelity mark, demonstrating consistent progress across both single-chip and modular platforms. With plans to scale this architecture to 100+ qubits by the end of 2025, Rigetti is signaling that its roadmap is not just aspirational but also executable. These developments suggest that Ankaa is evolving into a platform that could eventually support commercial-grade quantum workloads. Earlier milestones also reinforce that momentum. Ankaa-2, Rigetti's 84-qubit system, was made publicly available on Amazon Braket in mid-2024, bringing it out of the lab and into the hands of developers and early adopters. The system delivered 98% median two-qubit fidelity and featured a square-lattice layout designed for better hybrid performance. In partnership with Riverlane, Rigetti also demonstrated real-time quantum error correction on Ankaa-2 with decoding speeds below one microsecond—a critical step toward fault-tolerance. While the company is still in early commercialization, the shift from internal testing to public access and real-time demonstrations shows Ankaa is starting to deliver value beyond experimental benchmarks. Peers Updates International Business Machines' IBM Quantum System Two, its most advanced quantum architecture to date, was first unveiled in December 2023. While the system marked a significant leap in modularity and scalability, its true relevance came into focus in mid-2025 when IBM deployed the first international unit at RIKEN in Japan. This deployment, integrated with the powerful Fugaku supercomputer, signals that IBM is not only advancing quantum hardware but also delivering it in production-ready, high-performance environments. IonQ IONQ has also moved from promise to delivery with the launch and commercial deployment of its Forte Enterprise system. Available through AWS Braket and its cloud, the system is now accessible to customers around the world. IonQ's focus on delivering algorithmic performance with strong coherence and fidelity metrics makes it an attractive option for early enterprise experimentation. While the full commercial impact is still developing, IonQ's ability to put systems in customers hands gives it a more visible path to scaling than peers still in limited-access or pilot stages. Rigetti's Price Performance, Valuation and Estimates Shares of RGTI have lost 3.7% in the year-to-date period against the industry's growth of 15.6%. Image Source: Zacks Investment Research From a valuation standpoint, Rigetti trades at a price-to-book ratio of 20.32, above the industry average. RGTI carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Rigetti's 2025 earnings implies a significant 86.1% rise from the year-ago period. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Can RGTI Advance Toward Scalable Quantum Systems With Chiplet Design?
Rigetti Computing RGTI recently announced that it has reached a major technical milestone by achieving 99.5% median two-qubit gate fidelity on the modular 36-qubit system. This marks a two-times improvement in error rate compared with its prior best, the 84-qubit Ankaa-3 single-chip system. The new platform, composed of four 9-qubit chiplets tiled together, is a direct outcome of Rigetti's proprietary modular chip architecture, a design that allows for scalable, interconnected quantum systems. As the company prepares to launch this system on Aug. 15, the milestone brings Rigetti significantly closer to delivering more than 100 qubit chiplet-based platform by year-end. Rigetti's modular approach is not just about increasing qubit counts. It also helps improve system reliability, streamline manufacturing and support real-world performance. The company's latest 36-qubit system, built from four interconnected 9-qubit chips, shows that high-fidelity quantum operations can be maintained even across chip boundaries. That is a key step toward building larger, more scalable systems. For investors, it signals that Rigetti is not just advancing in the lab but taking meaningful steps toward developing commercial-grade quantum hardware that could appeal to enterprise and government customers alike. Peers Updates IonQ, Inc. IONQ is advancing trapped-ion quantum computing on multiple fronts. In June 2025, IonQ announced the $1 billion acquisition of Oxford Ionics to integrate ion-trap-on-a-chip technology and accelerate its path toward scalable, fault-tolerant systems. In April, IonQ launched Forte Enterprise, a 36-algorithmic-qubit system now available globally via its cloud and Amazon Braket, designed for high-performance enterprise workloads. It also unveiled a compact, room-temperature XHV ion-trap prototype, aimed at improving scalability and simplifying deployment. These moves strengthen IonQ's position in building modular quantum systems for enterprise and government customers. D-Wave Quantum Inc. QBTS advanced its annealing-based quantum platform with the May 2025 release of Advantage2, a sixth-gen system featuring more than 4,400 qubits, improved connectivity and energy efficiency. It is available via the cloud and for on-premises use. In June, D-Wave signed an MOU with Yonsei University and Incheon City to deploy Advantage2 in South Korea for academic and industrial applications. While distinct from gate-based systems, D-Wave's growing commercial adoption and global partnerships highlight its role in solving large-scale optimization problems. Rigetti's Price Performance, Valuation and Estimates Shares of RGTI have gained 12.3% in the year-to-date period compared with the industry's growth of 14.7%. Image Source: Zacks Investment Research From a valuation standpoint, Rigetti trades at a price-to-book ratio of 24.02, above the industry average. RGTI carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Rigetti's 2025 earnings implies a significant 86.1% rise from the year-ago period. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
07-07-2025
- Business
- Business Insider
Analysts Say Buy IonQ Stock, but Is Any Upside Really Left?
IonQ (NYSE:IONQ) stands at the leading edge of quantum computing innovation, driven by a mission to tackle some of the world's most complex problems. Leveraging advanced trapped-ion technology –renowned for its high-fidelity operations and exceptional stability – IonQ is working to deliver highly accurate quantum processing with minimal errors. The company's vision extends to enabling secure quantum communication across a wide range of platforms, from satellites and ground stations to telecom networks and even battlefield drones. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Although full-scale quantum capabilities are still years away, the tech has already attracted significant investor interest and plenty of that interest has been pointed at IONQ's direction; to wit, the shares have generated returns of 519% over the past year. This bullish sentiment is echoed by Cantor analyst Troy Jensen, who acknowledges that IonQ is still in the 'very early innings of commercializing its technology' but sees ample reason for the enthusiasm. Jensen believes the company could capture 20% of the quantum hardware, software, and services market by 2035, translating to $1.5 billion in sales within a decade. Much of Jensen's confidence is rooted in IonQ's distinct approach to quantum computing. Unlike companies focused on superconducting or photonic systems, IonQ uses individual atomic ions as qubits, which enables greater stability and precision. Its vertically integrated technology stack spans everything from chip design and production to cloud access via platforms like Amazon Braket, Microsoft Azure, and IonQ Cloud. 'This gives IonQ end-to-end control of its technology and provides faster feedback loops for R&D. Its unique architecture also allows programmability and modular scalability, critical for achieving near-term commercial advantage. IonQ's ability to fabricate room-temperature systems also eliminates the need for expensive cryogenic infrastructure,' Jensen explained. Meanwhile, IonQ is shifting from R&D to generating real revenue, with 'accelerating traction.' In April, it secured a $22 million system sale to EPB to create the first U.S. quantum computing and networking hub. Its Forte Enterprise system is already deployed in data centers across the U.S. and Europe. There are also Partnerships with Toyota Tsusho, Ansys, and General Dynamics, extending its presence into the automotive, simulation, and defense sectors. Furthermore, collaborations with DARPA, AFRL, and Abu Dhabi's Quantum Research Center 'demonstrate IonQ's credibility in national security and frontier research.' IonQ's ambitions don't stop at quantum computing. The company is making major investments in quantum networking, which it views as a crucial second business vertical. Through acquisitions of companies like ID Quantique (completed) and Lightsynq Technologies (pending), IonQ has gained key intellectual property and expertise in quantum memory, repeaters, and photonic interconnects – all vital components for building a quantum internet and linking quantum computers across data centers. As a result, IonQ is now among the select few with 'commercial momentum in both quantum computing and quantum-safe networking.' Crucially, IonQ has the financial strength to back these ambitions. By the end of Q1, it held nearly $700 million in cash and equivalents, bolstered by a recent $373 million equity offering. 'The capital enables the company to aggressively invest in product development, global expansion, and strategic M&A (i.e., Lightsynq & Oxford Ionics),' Jensen said. Given this array of strengths – from technology and partnerships to financial firepower – it's no surprise that Jensen initiated coverage of IONQ with an Overweight (i.e., Buy) rating. What is surprising, however, is that his $45 price target implies only a modest 1% upside from current levels. (To watch Jensen's track record, click here) All told, IonQ's rapid share appreciation has left analysts hustling to keep pace. The current $43.33 average price target points to a minor pullback, yet the Strong Buy consensus, based on 5 Buys and 1 Hold, underscores that most on Wall Street remain solidly bullish. It will be interesting to see whether the analysts raise price targets or downgrade their ratings over the coming months. (See IONQ stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
27-06-2025
- Business
- Business Insider
Market Risk Overshadows IonQ's 466% Stock Surge
IonQ (IONQ) has established itself as a leading player in the quantum computing space, with its shares surging an impressive 466% since this time last year. The company's differentiated trapped-ion architecture and strong integration across major cloud platforms have garnered significant investor interest. Confident Investing Starts Here: However, despite its technological strengths, IonQ's current valuation reflects elevated multiples and persistent profitability challenges. As a result, the risk-reward profile has become more nuanced. While the company's long-term potential remains compelling, I believe the stock is fairly priced at present, and I therefore maintain a Hold rating. IonQ Transforms Quantum Computing Founded in 2015 and headquartered in College Park, Maryland, IonQ has established itself as a quantum computing leader through its distinctive trapped-ion architecture. The firm offers quantum computing as a service (QCaaS) through cloud platforms like Amazon Braket, Microsoft Azure Quantum, and Google Cloud. Users can also run quantum programs remotely on IonQ's hardware, without having to own the machines. The business model revolves around becoming a platform provider for next-generation computing, similar to how NVIDIA (NVDA) enables AI with GPUs, IonQ wants to enable quantum breakthroughs with trapped-ion systems. These systems can operate at room temperature while maintaining fidelity rates of 99.9% for two-qubit gates, providing significant advantages over competitors that require extremely cold operating conditions. Not intent on standing still, the company recently announced its largest acquisition, with the $1 billion purchase of Oxford Ionics, combining the stack with a proprietary ion-trap-on-chip architecture. Additional acquisitions include Lightsynq Technologies and a controlling stake in ID Quantique, representing a further $1 billion. These massive strategic moves demonstrate a commitment to building a comprehensive quantum ecosystem, though a significant dilution of between 7-11% of shares raises substantial concerns about shareholder value. Technological expansion through acquisitions is promising to a degree, but numerous execution risks remain, given the complexity of integrating multiple quantum technologies. Explosive Growth Despite Profitability Concerns IonQ's revenue trajectory highlights exceptional growth, rising from $1.6 million in 2021 to $43.1 million in 2024. Management forecasts revenue between $75 million and $95 million for 2025, implying a compound annual growth rate of approximately 200% since the company went public. This rapid acceleration reflects meaningful commercial traction and reinforces the growing demand for quantum computing solutions. IonQ holds a differentiated position as the only quantum hardware provider integrated across all major cloud platforms—Amazon Web Services, Microsoft Azure, and Google Cloud. The company is targeting high-impact markets, particularly in cryptography, cybersecurity, and encryption, which offer substantial long-term potential. However, the path to profitability remains uncertain. In 2024, IonQ reported a net loss of $331.7 million, while operating expenses rose 38% year-over-year to $83.2 million in Q1 2025. Moreover, free cash flow remained significantly negative at -$123.7 million in 2024, underscoring the capital-intensive nature of quantum technology development. These financial challenges raise important questions about the timeline for achieving sustainable profitability. IonQ's Technical Advantages Push Up Expectations IonQ's competitive advantage stems from the distinctive strengths of its trapped-ion quantum architecture, which offers several benefits over superconducting approaches used by peers such as IBM (IBM) and Alphabet (GOOGL). Key differentiators include all-to-all qubit connectivity, longer coherence times, and significantly lower error correction overhead, estimated at a 13:1 ratio compared to approximately 100:1 for some competing platforms. While often complex for investors to understand, these details provide IonQ with a meaningful competitive advantage. The roadmap outlines a clear path to scaling, with plans to reach 100-qubit systems in the coming years and eventually millions of qubits through the integration of multi-core technology and photonic interconnects. An extensive patent portfolio of over 950 patents, spanning both quantum computing and networking, also provides additional competitive protection. Recent commercial deployments, including a $22 million Forte Enterprise quantum system to EPB in Chattanooga, demonstrate that practical applications are taking shape. While these developments are encouraging, the quantum computing market remains in its early stages, with uncertain commercial timelines and a heavy lean towards revenues generated in the U.S. for now, as reported by Main Street Data. IonQ Harnesses Technology to Mitigate Financial Risk While IonQ has established itself as a leader in trapped-ion quantum computing, several key risks warrant investor caution. The company remains significantly unprofitable, with ongoing cash burn primarily driven by substantial investments in research and development. Furthermore, the recent decision to discontinue disclosing forward bookings may raise concerns within the investment community regarding revenue visibility, complicating efforts to assess near-term growth momentum. Although the company's balance sheet is currently stable—with low leverage and a strong cash position—the persistently negative cash flow, as previously noted, presents a risk. Without meaningful progress toward improved financial efficiency, there is concern that the current capital position may not be sustainable over the long term. IonQ's reliance on government contracts and research partnerships presents another massive vulnerability, especially if public-sector funding priorities shift. And while its trapped-ion architecture has technical advantages for now, the broader field of quantum computing remains fairly experimental, with competitors pursuing alternatives that could scale more quickly or efficiently. Investors are ultimately betting not just on the company's execution, but on its very specific technological thesis proving correct. Valuation Concerns Temper Enthusiasm The quantum computing market presents enormous potential, with McKinsey research projecting that the market could reach $87 billion by 2035. However, this potential comes with significant valuation challenges that warrant caution. IonQ currently trades at approximately 135x projected 2025 sales, with an EV/Sales ratio of 232, dramatically above the sector median of 6.46, according to TipRanks data. While IonQ is operationally solid, these extreme valuation multiples create substantial downside risk if the company fails to meet lofty expectations. For now, a ~$10 billion market capitalization appears to reflect overly optimistic assumptions. Are IonQ Shares a Good Buy? Moreover, according to TipRanks data, the mixed trend in insider transactions reflects the complex variables at play. A spike in recent activity shows both heavy buying and selling. While these transactions are often unrelated to future performance, large transaction volumes of this nature are unlikely to send encouraging signals to the market about leadership confidence. IonQ Possesses Strong Potential as Valuation Calls for Patience In my view, IonQ presents a nuanced investment case within the emerging quantum computing sector. The company benefits from a strong technical foundation, an expanding patent portfolio, a healthy balance sheet, and a growing network of commercial and research partnerships—all of which support its long-term potential. However, the current valuation appears to be ahead of near-term fundamentals. Continued operating losses and execution risks—especially in such an early-stage and capital-intensive industry—highlight the disconnect between market performance and business maturity. Currently, it appears that the stock's exceptional run may have outpaced the company's underlying progress. My Hold rating reflects a balanced view of the risk-reward profile. While IonQ's leadership in technology and strategic positioning is compelling, the premium valuation constrains upside potential and introduces meaningful downside risk. Investors may be best served by exercising patience, allowing the company time to demonstrate continued execution and for the market to recalibrate its expectations accordingly.
