Latest news with #IonQ
Yahoo
a day ago
- 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
Yahoo
2 days ago
- Business
- Yahoo
After Plummeting by 18%, Could This Quantum Computing Stock Stage a Second-Half Comeback?
Key Points IonQ emerged as a popular opportunity in the quantum computing landscape late last year. Its shares took a hit earlier this year on concerns over new tariff policies as well as rising competition. While the stock is down by 18% from its highs, valuation trends still offer indications of a bubble. 10 stocks we like better than IonQ › During the last few months of 2024, quantum computing started to emerge as new area of interest for artificial intelligence (AI) investors. However, unlike with other pockets of the AI realm, rising interest in quantum computing did very little to influence the share prices of mainstream technology stocks such as those in the "Magnificent Seven." Instead, the quantum computing movement gave rise to a number of previously unknown businesses. One company that burst onto the scene late last year is IonQ (NYSE: IONQ). With a partner ecosystem that includes Microsoft Azure, Amazon Web Services, Google Cloud Platform, Nvidia, and the Department of Defense (DOD), IonQ looks like a multibagger investment opportunity powering the next big trend in the AI landscape. Like many new stocks in an already hot industry, IonQ has experienced some short-lived share price appreciation. Now, with shares down by roughly 18% from all-time highs, is IonQ positioned for a rebound during the second half of 2025? Why is IonQ stock selling off? Perhaps the most influential laggard on the stock market this year has been new tariff policies under the Trump administration. While these import taxes have been placed on numerous regions around the world, Wall Street seems to be keyed in on how tariffs will impact trade relations with one particular country: China. Like many companies, IonQ relies heavily on Chinese suppliers for some of its products. Ongoing negotiations with trade partners as a result of new tariffs has led to disrupted supply chains for businesses across most major industries, especially the technology sector. However, IonQ is still a small company -- holding just $588 million in cash and short-term investments on the balance sheet at the end of the first quarter. Considering that the company is not yet profitable, its burn rate will continue to erode liquidity over time. Now, with ongoing uncertainty around supply chain disruptions, IonQ faces a twofold challenge: navigating the impacts of tariffs on its business and doing so in a cost-efficient way. Tariffs are just one side of IonQ's challenges, though. From an industry-specific standpoint, big tech has expressed interest in exploring quantum computing. Cloud hyperscalers Microsoft, Alphabet, and Amazon have each built quantum computing chips, while Nvidia is developing an extension to its CUDA software system that focuses specifically on quantum applications. Rising competition from AI's biggest players could be viewed as a major threat to IonQ's future prospects by growth investors. IonQ's valuation is hard to justify Even with the uncertainties around tariffs and an intensifying competitive landscape, sometimes large-scale sell-offs are overblown and price in all of the perceived bad news. Yet despite an 18% decline from its highs, IonQ stock still looks overbought. Per the trends illustrated above, IonQ's market capitalization has experienced a prolonged period of expansion -- suggesting that the share price may have gotten ahead of itself. It's hard to justify a $10 billion valuation for an unprofitable company generating less than $50 million in annual sales. Is IonQ stock a good buy right now? IonQ's price-to-sales (P/S) multiple of 211 is far higher than what investors witnessed during stock market bubbles during the peak days of the COVID-19 pandemic and even the dot-com boom during the late 1990s. With these dynamics in play, smart investors know they need to be careful when it comes to investing in IonQ. While the company's recently depressed share price action might give the appearance of an opportunity to buy the dip, underlying valuation trends suggest the stock remains historically pricey. In my eyes, IonQ's popularity so far has mostly been supported by bullish narratives around the macro opportunity of quantum computing rather than anything specifically related to the company or its operations. To me, IonQ lacks tangible catalysts that could lead to a second-half rebound in the stock. Moreover, as investors witnessed during other periods of inflation valuations, I think it's highly likely that IonQ stock could continue plummeting from its current levels and a prolonged period of valuation resetting could be on the horizon. For these reasons, I see IonQ as a speculative stock to own and would pass on it at its current valuation. Should you invest $1,000 in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. After Plummeting by 18%, Could This Quantum Computing Stock Stage a Second-Half Comeback? was originally published by The Motley Fool 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
2 days ago
- Business
- Business Insider
Quantum Computing News: IonQ's Satellite Push, Rigetti's Chip Milestone, and $100M+ in Deep Tech Funding
Quantum computing is shaping up to be the most dynamic industry of 2025, with larger funds and new breakthroughs emerging almost every week. As Ferris Bueller so eloquently put it: 'Life moves pretty fast. If you don't stop and look around once in a while, you could miss it.' Blink, and another milestone has been reached. This week brought another wave of momentum, including strategic acquisitions, hardware performance gains, deep tech funding rounds, and ambitious global expansion plans. 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. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Investors tracking stocks like IonQ (IONQ), Rigetti Computing (RGTI), and companies aligned with AI infrastructure and quantum cybersecurity may want to keep these updates on their radar. IonQ Completes Capella Space Acquisition IonQ, one of the more prominent pure-quantum plays, has finalized its acquisition of Capella Space, setting the stage for a space-based quantum key distribution (QKD) network that merges IonQ's quantum systems with Capella's synthetic aperture radar satellites. The platform will enable quantum-secure global communications and quantum-enhanced Earth observation. Capella customers will gain access to secure, real-time sensing, while IonQ expands its foothold in quantum networking. This follows IonQ's collaborations with ID Quantique, the Applied Research Laboratory for Intelligence and Security, and the U.S. Air Force Research Laboratory. IONQ stock rose 5% in yesterday's trading. Rigetti Hits 99.5% Fidelity on 36-Qubit Modular Chip Rigetti Computing reported that it has reached a 99.5% median two-qubit gate fidelity on a new modular 36-qubit chiplet system, meeting its mid-year technical milestone. On the back of this milestone, RGTI stock soared 30% in one trading session! The system utilizes four 9-qubit chiplets, reducing gate error rates by half compared to the company's earlier 84-qubit Ankaa-3 platform. Rigetti will launch the new system on August 15 and remains on schedule to deliver a 100+ qubit chiplet system by year-end. The modular approach is designed to support scaling while preserving performance. Raises €62 Million for Photonic AI Chips a Stuttgart-based start-up, secured €62 million in Series A funding to accelerate the rollout of its photonic processors built on Thin-Film Lithium Niobate. The chips offer up to 30× energy savings and 50× performance gains over traditional silicon, targeting artificial intelligence and high-performance computing. Backers include Cherry Ventures, UVC Partners, and The company plans to expand to the United States and scale production of its Native Processing Server, which integrates with current data centers as a co-processor. QpiAI Closes $32 Million Round for Utility-Scale Quantum Systems India-based QpiAI raised $32 million in Series A funding from Avataar Ventures and the National Quantum Mission. The company builds full-stack quantum computers for enterprise applications in materials science and drug discovery. QpiAI operates in India, Finland, and the United States, and is focused on delivering logical-qubit systems to complement its current NISQ solutions. The company's leadership includes over two dozen Ph.D.s from global research institutions, and the new capital will support international growth. SandboxAQ Adds $95 Million to Expand Quantitative AI SandboxAQ, Google's (GOOG) AI-quantum spinoff, has secured $95 million through a secondary funding round led by Rizvi Traverse, bringing its total funding to nearly $1 billion since its 2022 spinout from Alphabet. The company is developing large quantitative models designed to simulate physical systems across various industries, including biopharma, energy, and aerospace. Products include AQBioSim for drug discovery and AQtive Guard for quantum-secure cybersecurity. Investors in prior rounds include Google, NVIDIA (NVDA), and Bridgewater's Ray Dalio. Using TipRanks' Comparison Too l, we've brought together some of the most prominent stocks in the quantum space to see how they stack up. It's a quick way for investors to get a clearer view of each company's position, and a better sense of where the industry is headed overall.
Yahoo
3 days ago
- Business
- Yahoo
IonQ, Inc. (IONQ) Teams Up with J.P. Morgan to Raise Capital Through Share and Warrant Sale
With strong hedge fund backing and a positive analyst outlook, IonQ, Inc. (NYSE:IONQ) makes it to our list of the Top 10 AI Infrastructure Stocks to Buy Now. Photo by Anton Maksimov juvnsky on Unsplash On July 7, 2025, IonQ, Inc. (NYSE:IONQ) entered into an underwriting agreement with JP Morgan. This agreement relates to the sale of over 14 million shares and around 40 million warrants. With this offering, the company aims to strengthen its balance sheet, funding its continued expansion across commercial and government-focused quantum deployments. Looking ahead from this agreement, IonQ, Inc. (NYSE:IONQ) expects $18 million in revenue (at the midpoint of the guidance), which is 8.1% above expectations. The company attributed this guidance to the strong demand for quantum networking, R&D-driven progress, and acquisitions of Lightsynq and Capela, which are expected to build long-range quantum networks. IonQ, Inc. (NYSE:IONQ) is a U.S.-based quantum computing hardware and software company, developing quantum hardware, networking systems, and software for enterprise and defense customers. While we acknowledge the potential of IONQ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 7 Best Stocks to Invest in for a Quick Return and 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Disclosure: None.
Yahoo
3 days ago
- Business
- Yahoo
Will IonQ Stock Rise on Capella Space Buyout and Quantum Ambitions?
IonQ. Inc. IONQ, a pioneer in quantum computing, is setting its sights far beyond Earth's surface. With the recent acquisition of Capella Space, a satellite technology firm known for synthetic aperture radar ('SAR') imaging, IonQ is accelerating its bold vision to build the first global space-based quantum key distribution ('QKD') network. The deal positions IonQ to not only lead in quantum computing but also in quantum-secure communications—a sector expected to become increasingly vital for both commercial and defense applications. Capella Acquisition Signals a New Quantum Frontier for IonQ The completed acquisition of Capella Space is not just a strategic expansion—it marks a foundational step toward realizing IonQ's quantum Internet ambitions. By integrating Capella's space-based infrastructure with its quantum hardware and software stack, IonQ is developing a QKD network that promises tamper-proof communication channels between satellites and ground stations. This could prove essential for national defense, cybersecurity, and even financial institutions where absolute data security is space-based QKD architecture would also support new capabilities in Earth observation, enhancing SAR imaging with quantum encryption for ultra-secure data transmission. IonQ's move effectively positions it as the first player in a new category: quantum-enabled geospatial intelligence. According to IonQ CEO Niccolo de Masi, the integration will not only enhance commercial applications but also expand the company's role in global defense and intelligence operations. IonQ's Partnerships Reinforce Strategic Depth Beyond Capella, IonQ has also forged key partnerships that reinforce its long-term vision. Its collaboration with ID Quantique, a leader in quantum-safe cryptography, and its quantum networking contracts with the U.S. Air Force Research Laboratory and the Applied Research Laboratory for Intelligence and Security highlight the growing demand for IonQ's technology in national security and enterprise use alliances help validate IonQ's platform and increase the likelihood of recurring revenue through long-term government engagements. With security concerns escalating globally and government agencies seeking resilient communications infrastructure, IonQ's offering stands to benefit from rising demand in the public sector. IONQ's Strong Share Price Momentum IonQ shares have surged 61% over the past three months, outpacing the 45.1% gain in the Zacks Computer-Integrated Systems industry and the 30.1% rise in the broader Zacks Computer and Technology sector. Even the S&P 500's robust 18.8% climb during the same period has lagged behind IonQ's performance. This momentum reflects investor enthusiasm around IonQ's strategic direction, particularly its leadership in quantum networking and government-backed projects. IONQ 3-Month Share Price Performance Image Source: Zacks Investment Research Yet with this rally comes a note of caution. The stock is currently trading at a lofty forward 12-month price-to-sales (P/S) ratio of 97.61, which is significantly higher than the industry average of 3.84. While IonQ operates in a highly specialized frontier market, the steep premium raises questions about whether the stock has already priced in too much of the company's long-term potential. IONQ Valuation Image Source: Zacks Investment Research IONQ's Revenue Outlook and Earnings Trend Despite the sky-high valuation, the company's growth trajectory appears robust. For 2025, the Zacks Consensus Estimate for revenue implies a near doubling year over year, at 97.3% growth. That said, analysts have become slightly more conservative in their projections for profitability. The consensus estimate for 2025's loss per share has widened over the past 30 days, although it still points to a much narrower loss than the $1.56 per share loss reported a year ago. Image Source: Zacks Investment Research This mixed sentiment suggests that investors are optimistic about revenue expansion but remain cautious about when IonQ will turn the corner on profitability. The company continues to invest heavily in R&D and infrastructure, particularly in its quantum-as-a-service (QaaS) and networking initiatives, which may delay earnings upside but could secure a first-mover advantage. Challenges Remain on the Path to Profitability for IonQ While IonQ's technological edge is compelling, the company is still in an early stage of commercial maturity. The quantum computing industry is years away from widespread enterprise adoption, and IonQ must demonstrate its ability to transition from R&D-driven partnerships to scalable, recurring commercial revenue. In the meantime, its burn rate and elevated valuation could limit investor patience if near-term milestones fall the intensifying competition from peers like International Business Machines Corporation IBM, Microsoft Corporation MSFT, and Rigetti Computing, Inc. RGTI could challenge IonQ's leadership if those firms scale more quickly or secure broader ecosystems. IBM's extensive hardware roadmap and global quantum network make it a key rival, while Microsoft's Azure Quantum is gaining traction with hybrid solutions and cloud accessibility. Both IBM and Microsoft have broader platforms and deeper enterprise reach. Rigetti, though smaller, competes closely with IonQ in hardware innovation. While IonQ's space-based QKD provides a differentiator, IBM and Microsoft, mentioned repeatedly in enterprise discussions, remain the more established players with vast resources and client ecosystems. Conclusion IonQ is making bold moves that reflect its ambition to shape the quantum future, from terrestrial computing to orbital communications. The Capella Space acquisition solidifies its leadership in quantum-secure networking and opens a new chapter in space-based infrastructure. With accelerating government interest, a clear roadmap toward the quantum Internet, and strong revenue prospects, IonQ offers a compelling growth with its valuation already stretched and earnings still in the red, investors should remain cautious. IonQ currently carries a Zacks Rank #3 (Hold), which aligns with a prudent approach — hold the stock and monitor execution, especially as the company integrates Capella and ramps up commercial applications. 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 Microsoft Corporation (MSFT) : Free Stock Analysis 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
