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Globe and Mail
24-06-2025
- Business
- Globe and Mail
Quantum Networking: Is IonQ Ahead of the Big Tech Titans?
IonQ, Inc. IONQ has long positioned itself as more than a quantum computing company—it is building a full-stack quantum ecosystem. From the outset, the firm architected its systems for scalability through photonic interconnects, enabling distributed quantum computing across multiple quantum processing units. This foundational strategy is now evolving into a broader mission: to pioneer the quantum Internet. What sets IonQ apart from Big Tech peers is its aggressive investment in quantum networking infrastructure. Through strategic acquisitions—including Entangled Networks, Qubitekk, ID Quantique, and most recently, Lightsynq and Capella—the company is assembling all the essential components of quantum communication. Lightsynq brings quantum repeater and memory technologies that remove distance limitations by enabling secure transmission across hundreds of kilometers. Capella strengthens IonQ's ambitions in space-based quantum networking and quantum key distribution (QKD), areas already under exploration by China and the EU. IonQ's commercial progress reinforces its lead. Its partnership with EPB in Chattanooga represents the first real-world deployment of both a quantum computer and network in one ecosystem. Meanwhile, IonQ's quantum networks are operational across sectors, including telecom (SK Telecom, Singtel), energy (EPB), and national defense. While cloud leaders like Microsoft MSFT and Amazon AMZN focus on hosting third-party quantum systems, IonQ is vertically integrating the stack—from hardware and photonic links to QKD protocols and satellite capabilities. Backed by a nearly $700 million war chest, IonQ is not just preparing for the quantum Internet—it is building it. For now, the company stands several steps ahead of its larger rivals in a race they have barely begun. Competitors in Focus: Can MSFT and GOOGL Catch Up? While IonQ is heading quantum networking innovation, major tech giants like Microsoft and Alphabet GOOGL are not far behind in the broader quantum race. Microsoft's Azure Quantum platform focuses on a hybrid cloud-based model that integrates quantum computing with classical workflows. However, Microsoft has yet to reveal a clear strategy for quantum networking infrastructure, relying instead on partnerships and simulation-based models rather than hardware-driven quantum interconnects. Alphabet's Google Quantum AI division is advancing quantum supremacy through its Sycamore processors, but its efforts remain largely confined to single-device computing. Unlike IonQ, Google has not announced plans for quantum repeater development or space-based networking capabilities. Neither MSFT nor GOOGL has demonstrated the same degree of vertical integration across compute and quantum communications as IonQ. While both possess deep resources and talent, their current focus is skewed toward quantum computation, leaving IonQ with a clear lead in the quantum networking frontier. IONQ's Price Performance, Valuation and Estimates IonQ shares have gained 61% in the past three months, outperforming the Zacks Computer - Integrated Systems industry. Image Source: Zacks Investment Research IonQ's forward 12-month price/sales ratio of 99.45, far above the industry average of 3.71. For IONQ, the Zacks Consensus Estimate for 2025 loss per share has narrowed over the past 60 days, as you can see below, depicting analysts' optimism. The estimated figure indicates a much narrower loss than the year-ago reported loss of $1.56 per share. The Zacks Consensus Estimate for 2025 revenues implies year-over-year growth of 97.3%. IONQ stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report IonQ, Inc. (IONQ): Free Stock Analysis Report
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.
