Latest news with #NiccoloDeMasi
Yahoo
5 days ago
- Business
- Yahoo
This Company's CEO Said It Wants to Become the Nvidia of Quantum Computing. Should You Buy the Stock Now?
IonQ's CEO believes the company can build a quantum computing ecosystem that dominates the field, like Nvidia has done in AI chips. Industry experts widely believe that quantum computers are still several years away from widespread use. IonQ's stock currently carries an $11.8 billion market cap. 10 stocks we like better than IonQ › Nvidia (NASDAQ: NVDA) is arguably the face of the artificial intelligence (AI) industry. The stock has generated enormous investment returns because the company's AI accelerator chips became the overwhelming leader in an emerging market that has shown explosive growth over the past several years. In the search for the next emerging market, some are pointing to quantum computing as technology's next great frontier. It's still quite early, but the analysts are already speculating that quantum computers could be exponentially more powerful than modern computers, unlocking the full potential of AI and other industries, and creating new ones. The CEO of IonQ (NYSE: IONQ), a company developing quantum computers, recently said the company hopes to become the Nvidia of this technology sector. It's a bold assertion, considering Nvidia's massive success, and IonQ stock jumped higher on the news. Is IonQ for real, or are the CEO's words more hot air than substance? Let's look at whether you should buy the stock now. In an interview with Barron's, IonQ CEO Niccolo de Masi said the company wants to become the Nvidia of quantum computing. Essentially, de Masi likened IonQ to Nvidia because he believes the company has a technology or performance edge that will enable it to build a quantum computing ecosystem that captures the market, much like Nvidia did in AI with its graphics processing unit (GPU) accelerator chips and CUDA software. If he's right, IonQ could be a tremendous investment. Research by Boston Consulting Group estimates that the market opportunity for quantum computing hardware and software providers could grow to $90 billion to $170 billion by 2040. IonQ's market cap is currently just $11.8 billion. IonQ has built a few quantum computers. It has partnered with cloud companies like Amazon, Microsoft, and Alphabet to offer customers access. Over the past four quarters, IonQ has generated $43 million in revenue. However, it's still very early. Quantum computers must operate in a highly controlled environment and are still prone to computing errors that make them somewhat impractical for real-world work. There is also little software or support beyond research applications. Industry experts widely believe that quantum computers, useful enough for real-world applications, are still several years away, perhaps five years or more. CEO Niccolo de Masi could be correct about IonQ's positioning to dominate quantum computing, but I disagree. AI models demanded immense computing power. Nvidia captured the AI chip market for two primary reasons: Nvidia's GPU-based chips were a natural fit because they already excelled at efficiently performing high workloads. The hyperscalers building out AI infrastructure are competing with one another. They decided that moving quickly is more important than messing around with alternatives, even if it costs more. Like AI models and applications, quantum computing will likely operate through the cloud. That's probably why all the cloud computing companies are developing quantum computers, too. IonQ's cloud partners will eventually become the competition. Even if IonQ does have the best quantum technology today, the battle will be won over the next decade and beyond, not this year or even next year. Cloud companies will likely shut IonQ out once they can implement their quantum computers into their cloud platform. IonQ can win a piece of the market, but it seems unlikely to dominate it like Nvidia in AI accelerator chips. It isn't easy to justify buying a nearly $12 billion market cap stock when the business it represents generates only $43 million in revenue. Yes, you're investing in the future, but it's a murky future with many potential pitfalls. The same research from Boston Consulting Group estimates the market opportunity will be just $1 billion to $2 billion before 2030. If that were accurate and IonQ captured the entire opportunity -- an unrealistic outcome -- the stock trades at six to 12 times revenue it won't generate for five years. None of this discussion can even begin to speculate on IonQ's profit margins or when the business might turn a profit. The stock can make sense as a long-term bet and a small component of a diversified portfolio, but only at the right price. There isn't much supporting its $11.8 billion market cap, so now is not the time to buy. IonQ stock has traded under $7 per share within the past year, which shows how volatile these risky stocks can be. Investors should wait for the stock to fall a ways before circling back. 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. 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. This Company's CEO Said It Wants to Become the Nvidia of Quantum Computing. Should You Buy the Stock Now? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
27-05-2025
- Business
- Globe and Mail
'The Nvidia of Quantum Computing': Should You Buy IonQ Stock for Its Bold Quantum Computing Vision?
Investing in quantum computing stocks remains a compelling proposition for investors, given that the transformative technology is poised to solve complex problems across verticals, including machine learning and cryptography. Today, the quantum computing segment is at a nascent stage but offers significant growth potential as the technology matures and commercial applications are deployed at scale. Market research projects the quantum computing total addressable market reaching as high as $7 billion by 2030. For technology investors, quantum computing stocks offer unique diversification opportunities distinct from traditional software, semiconductor, or cloud computing investments. So, let's see if you should invest in IonQ (IONQ) stock, a company known for its bold quantum computing vision. Is IonQ Stock a Good Buy in May 2025? IonQ delivered solid first-quarter results with $7.6 million in revenue, beating the midpoint guidance, while announcing transformative acquisitions that position the company as a comprehensive quantum technology leader. The quantum computing pioneer reported momentum across computing and networking segments, reinforced by a fortress balance sheet with nearly $700 million in cash equivalents. CEO Niccolo de Masi unveiled two critical acquisitions that accelerate IonQ's quantum internet vision. IonQ announced plans to acquire Boston-based Lightsynq, whose quantum memory technology enables quantum repeaters extending network range beyond current 20-mile limitations to hundreds of miles. Lightsynq's Harvard-developed technology, protected by over 25 patents, will accelerate IonQ's photonic interconnect capabilities for scaling to millions of qubits. Simultaneously, IonQ revealed the planned acquisition of Colorado-based Capella. This acquisition will bring space-based quantum key distribution capabilities and top-secret contracting expertise, positioning IonQ to compete with Chinese advances in quantum networking while serving critical national security applications. The quarter featured notable commercial wins for IonQ, including EPB's $22 million purchase of half a Forte Enterprise system's capacity, making EPB the first customer with both quantum computing and networking capabilities. IonQ also closed its majority acquisition of ID Quantique, solidifying global quantum networking leadership. Technical achievements included selecting the DARPA Quantum Benchmarking Initiative and demonstrating 12% simulation time improvements through partnerships with AstraZeneca (AZN) and Ansys (ANSS) at Nvidia's (NVDA) GTC conference. Is IonQ Stock the Next Nvidia? IonQ stock surged nearly 40% following optimistic comments from CEO Niccolo de Masi, who compared the quantum computing leader to GPU giants Nvidia and Broadcom (AVGO). De Masi's bullish outlook reflects growing momentum in quantum computing, with many stocks in the sector performing strongly over recent months. The CEO expressed confidence that IonQ could achieve Nvidia-like growth, stating the company is focused on 'driving the ecosystem.' This optimism comes despite earlier skepticism when Nvidia's Jensen Huang suggested quantum computing applications were decades away, though he later revised his stance at Nvidia's first Quantum Day event. While Nvidia is building its own quantum research center in Boston, de Masi remains confident in IonQ's competitive positioning. The surge reflects broader investor interest in quantum computing's potential to revolutionize technology applications, with IonQ positioned as a pure-play leader in the emerging field. IonQ operates four quantum networks, serving diverse customers in defense and telecommunications. The company's integrated approach, combining quantum computing with networking, creates unique synergies, positioning IonQ to dominate the emerging quantum internet market while maintaining leadership in quantum computing applications. Valued at a market cap of $10.2 billion, IonQ is forecast to increase its sales from $43 million in 2024 to $750 million in 2029. However, the quantum computing giant is forecast to remain unprofitable with net losses of $48.6 million in 2029, compared to a loss of $214 million in 2024. Out of the five analysts covering IONQ stock, three recommend 'Strong Buy,' one recommends 'Moderate Buy,' and one recommends 'Hold.' The average IONQ stock price target is $40, below the current trading price.
Yahoo
24-05-2025
- Business
- Yahoo
IONQ Stock Surges on Strategic Quantum Acquisitions
Quantum computing pioneer IonQ (IONQ) is actively pursuing an ambitious acquisition strategy in the quantum networking space, and early indications suggest it may be paying off. While the company reported relatively flat revenue growth in Q1, posting $7.6 million earlier this month, which fell short of analyst expectations, its earnings per share (EPS) of –$0.14 exceeded forecasts of –$0.25. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Yet, under new CEO Niccolo de Masi, management is maintaining its full-year revenue guidance of $75-95 million, helping to send the shares up over 45% in the past month. In late April, the stock was trading at ~$23 per share. Today, the stock is at ~$35 and eyeing a push above its all-time highs around $50. While competition among players in the space, such as IBM (IBM), Google (GOOGL), Rigetti (RGTI), and D-Wave Computing (QBTS) is intense, I continue to be bullish about IonQ's long-term prospects and view the company as a key holding for those interested in exposure to quantum computing. Quarterly revenues of $7.6 million were in line with the company's own guidance yet fell significantly short of the $16.25 million analysts had projected. Operating costs rose 38% year-over-year to $83.2 million, with R&D expenses increasing 23% to $40 million. However, the company made substantial progress on limiting losses. The net loss of $32.3 million marked an 18% year-over-year improvement from the $39.6 million loss in Q1 2024 and helped IonQ beat EPS expectations. IonQ's balance sheet remains exceptionally strong, with cash reserves totaling $697.1 million, bolstered by a recent at-market equity offering. This substantial war chest provides significant runway for continued research in technological development and investment in strategic acquisitions. The company maintained its full-year 2025 revenue guidance of $75-95 million despite the Q1 shortfall, projecting Q2 revenue between $16-18 million, representing significant sequential growth. IonQ has made significant strategic moves recently, including announcing the acquisition of Lightsynq Technologies, a specialist in quantum memory, quantum repeaters, and photonic interconnects. The Lightsynq deal, combined with the recent acquisition of ID Quantique and pending acquisition of Capella, accelerates the company's leadership in quantum computing and quantum networking and potentially enables scaling quantum computers to millions of qubits. While these acquisitions increase short-term operating expenses and integration costs, they significantly strengthen IonQ's technology portfolio and market positioning. IonQ also secured significant contracts during the quarter, including with the U.S. Air Force Research Laboratory, and announced the first commercial quantum computing and networking hub in a partnership with EPB. IonQ highlighted several technological achievements during Q1. The company demonstrated a 12% speed improvement over classical computing in a heart pump simulation using quantum-processed data. This collaboration with Ansys (ANSS) represents a significant milestone as it shows practical quantum advantage in a real-world commercial application. IonQ also announced progress in applying quantum computing to artificial intelligence through hybrid quantum-classical approaches. The company's research shows quantum-enhanced processing for large language models (LLMs) and generative AI, with specific applications in materials science, where quantum-enhanced generative networks have produced higher-quality synthetic data than classical methods. Hardware miniaturization achievements included a next-generation ion trap vacuum package prototype, potentially enabling smaller, room-temperature quantum systems. The company also published new quantum error correction codes optimized for its architecture that outperform previous methods, addressing a critical challenge in quantum computing scaling. The company's patent portfolio now exceeds 950 patents in quantum computing and networking technologies, which provides potential competitive barriers and licensing opportunities. On Wall Street, four analysts recommended IonQ as a Strong Buy, with only one staying neutral. The average 12-month price target for IONQ stock is $40, representing a potential upside of 13% from current levels. Analysts have maintained a bullish outlook on the company despite recent adjustments in price targets for its shares. For example, Quinn Bolton from Needham reiterated a Buy rating, lowering the price target from $54 to $50, citing IonQ's full-year revenue guidance, Capella Space Corporation and Lightsync acquisitions, and partnership with EPB. Meanwhile, Morgan Stanley adjusted its price target slightly to $30 from $29, maintaining an Equal Weight rating. It noted that annual guidance remains unchanged and acknowledged the strategic value of recent and past acquisitions despite perceptions of limited revenue upside. Other analysts, such as David Williams from Benchmark Co. and Richard Shannon from Craig-Hallum, reaffirmed their Buy ratings while maintaining price targets of $40 and $45, respectively. IonQ offers investors exposure to the rapidly evolving quantum computing sector, with significant long-term potential and notable risks. The company's strong cash position provides a solid financial runway, enabling continued investment in technology development and strategic acquisitions without immediate capital concerns. That said, revenue growth remains a key area of concern. Although IonQ reaffirmed its full-year guidance, flat year-over-year revenue in Q1 raises questions about its ability to meet the $75–95 million revenue target for 2025. Investors should closely track the company's progress in scaling commercial revenue over the coming quarters. In addition, integrating recent acquisitions—including Lightsynq, ID Quantique, and Capella—presents execution challenges. Successfully merging these operations while maintaining innovation and momentum will be a critical test for management. The competitive landscape also remains intense, with several well-funded players pursuing similar advancements in quantum technology. Despite these headwinds, I remain optimistic about quantum computing's long-term potential. IonQ's blend of technological innovation and strategic acquisitions makes it a compelling player. The company represents a bold and forward-looking opportunity for investors with a higher risk tolerance and a long-term perspective. Disclaimer & DisclosureReport an Issue
Yahoo
24-05-2025
- Business
- Yahoo
Why IonQ, Inc. (IONQ) Soared Today
We recently published a list of In this article, we are going to take a look at where IonQ, Inc. (NYSE:IONQ) stands against other stocks that soared today. IonQ saw its share prices jump by 36.52 percent on Thursday to end at $45.79 apiece as investor sentiment was buoyed by its chief executive's comments bold claim that the company will become the next Nvidia Corp. of the quantum computing sector. In an interview with Barron's, IonQ, Inc. (NYSE:IONQ) Chief Executive Officer Niccolo de Masi was quoted as saying that he believes the company 'will be the Nvidia player' of the quantum computing sector. A quantum computer on a countertop in an engineering laboratory with a technician at work. 'We're in the business of quantum just like Nvidia and Broadcom are in the business of classical GPUs,' de Masi told the news outlet. 'I believe IonQ will be the Nvidia player. There will be other people that copy us and follow us; they have always copied and followed us,' he said. De Masi's comments also spilled over into shares of other quantum computing stocks such as RGTI, QBTS, and QUBT. Overall, IONQ ranks 3rd on our list of stocks that soared today. While we acknowledge the potential of IONQ, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IONQ and has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
24-05-2025
- Business
- Yahoo
IonQ CEO's strong 4-word message sends stock soaring
After an extremely positive statement from its CEO, IonQ () stock is surging and currently ranks among the market's top movers. A leader in the quantum computing space, the company is known for commercializing and developing trapped ion machines. This refers to a type of quantum computing in which computations are performed by ionized atoms that can be precisely controlled, creating a more stable user experience. 💰💸 💰💸 The industry is sometimes overshadowed by other tech areas, such as artificial intelligence (AI). But over the past month, many quantum computing stocks have been performing extremely well, making it increasingly difficult for investors to ignore their progress. Today's announcement is a further indication that industry leaders are extremely optimistic about the future of quantum computing. Since trading began May 22, IonQ stock has been rising steadily and isn't showing signs of slowing down. As of this writing, it is up almost 40% for the day, and its current trajectory suggests it is likely to continue trending noted, this positive momentum can be attributed to a recent statement from CEO Niccolo de Masi, who is highly optimistic about his company's growth prospects. In an interview, he compared IonQ to two of the most prominent companies in the graphics processing unit (GPU) space. 'We're in the business of quantum, just like Nvidia and Broadcom are in the business of classical GPUs,' de Masi states. 'I believe IonQ will be the Nvidia player. There will be other people that copy us and follow us; they have always copied and followed us.' This comparison may seem flattering, as Nvidia () and Broadcom are two of the world's most successful chipmakers. Their GPUs have done much to help power the AI revolution and usher in a new era for the tech sector. However, some experts have speculated that the rise of quantum computing is poised to help take AI even further, as the two technologies can work simultaneously and allow for new innovations. This includes D-Wave Quantum () CEO Dr. Alan Baratz, who shared this take with TheStreet in January 2025. D-Wave stock surged earlier this week when it announced the release of Advantage2, its latest quantum computing system. The company's leaders have hailed it as a pivotal advancement both for their firm and for the industry. More Tech Stocks News: Nvidia CEO shares blunt message on China chip sales ban Fund manager has shocking Elon Musk and Tesla prediction Apple CEO's business plan provokes US president De Masi's claims may be specific to his own company, but they seem to be boosting other quantum computing stocks as well. D-Wave is up 23% for the day, and fellow quantum computing company Rigetti Computing is up 26%. In January 2025, quantum computing stocks plunged when Nvidia CEO Jensen Huang predicted that the technology was likely decades away from having practical applications. A few months later, however, he invited multiple industry leaders to join him at the first Nvidia Quantum Day event and offered a revised then, many quantum stocks have demonstrated fairly strong growth, while companies have revealed progress. Now the CEO of one of the industry's most prominent companies believes his firm can achieve an ascent similar to that of Nvidia. Some experts may highlight the fact that Nvidia is also working to gain a share of the quantum computing market. In March 2025, it revealed plans to build an accelerated quantum research center in Boston, Mass. However, de Masi remains unfazed by this and seems steadfast in his conviction that IonQ can continue to demonstrate the type of growth it would need to be considered the Nvidia of quantum computing. 'We feel good about our competitive positioning because, at the end of the day, we are trying to drive the ecosystem,' he CEO's strong 4-word message sends stock soaring first appeared on TheStreet on May 22, 2025
