TLDR
- IonQ stock surged 37% Thursday with CEO claiming company aims to become the “Nvidia of quantum computing”
- Q1 revenue of $7.6 million missed analyst expectations of $16.25 million but company maintains full-year guidance of $75-95 million
- Company completed strategic acquisitions including Lightsynq Technologies and pending Capella deal to strengthen quantum networking capabilities
- Wall Street analysts maintain Strong Buy rating with average price target of $40, representing 13% upside potential
- Stock broke out of rising wedge pattern with key resistance at $55 and support levels at $28 and $18
IonQ stock jumped 37% Thursday as CEO Niccolo de Masi made a bold comparison. He told Barron’s the company wants to become the Nvidia of quantum computing.
The CEO said IonQ is “in the business of quantum just like Nvidia and Broadcom are in the business of classical GPUs.” He believes IonQ will be the Nvidia player in quantum space.
The stock closed at $45.79 Thursday. This pushed shares into positive territory for 2025. The company has doubled from early April lows and risen five-fold over the past year.
$IONQ IonQ wants to be the $NVDA of quantum computing by offering a full stack platform with hardware, software, and cloud access pic.twitter.com/8OP2X5pcoC
— Wolfe (@everytimeicash) May 22, 2025
The surge came after D-Wave Quantum announced its next-generation Advantage2 quantum computer earlier this week. This boosted sentiment across the quantum computing sector.
Financial Performance Shows Mixed Results
IonQ reported Q1 revenue of $7.6 million in early May. This number fell short of analyst expectations of $16.25 million. However, the company beat earnings per share estimates.
The company posted an EPS loss of $0.14. Analysts had expected a loss of $0.25 per share. This represented an 18% improvement from the $39.6 million net loss in Q1 2024.
Operating costs rose 38% year-over-year to $83.2 million. Research and development expenses increased 23% to $40 million. Despite higher costs, the company limited its losses compared to last year.
IonQ maintains strong cash reserves of $697.1 million. This war chest came from a recent equity offering. The funds provide runway for research and strategic acquisitions.
The company kept its full-year revenue guidance of $75-95 million. Management projects Q2 revenue between $16-18 million. This would represent major sequential growth from Q1.
Strategic Moves Strengthen Technology Portfolio
IonQ announced the acquisition of Lightsynq Technologies during the quarter. Lightsynq specializes in quantum memory, quantum repeaters, and photonic interconnects. The deal strengthens IonQ’s quantum networking capabilities.
The company also completed the acquisition of ID Quantique. A pending deal for Capella is still in progress. These acquisitions help accelerate quantum computing and networking development.
IonQ secured contracts with the U.S. Air Force Research Laboratory. The company also announced the first commercial quantum computing hub in partnership with EPB.
The company demonstrated a 12% speed improvement over classical computing in heart pump simulations. This collaboration with Ansys shows practical quantum advantage in commercial applications.
IonQ made progress applying quantum computing to artificial intelligence. The company’s research shows quantum-enhanced processing for large language models and generative AI.
Hardware achievements included a next-generation ion trap vacuum package prototype. This could enable smaller, room-temperature quantum systems. The company published new quantum error correction codes optimized for its architecture.
IonQ’s patent portfolio now exceeds 950 patents in quantum computing and networking. This provides competitive barriers and potential licensing opportunities.
Technical Analysis Points to Key Levels
The stock found support at its 200-day moving average before Thursday’s breakout. IonQ shares had been trending higher within a rising wedge pattern. The breakout came with strong volume backing the move.
The relative strength index shows bullish momentum above 70. However, this also indicates overbought conditions that could trigger short-term selling.
Key resistance sits around $55 near the stock’s all-time high. Technical analysis projects a potential target around $100 if the uptrend continues. This would represent 120% upside from Thursday’s close.
Support levels to watch include $28 where the 50-day moving average provides backing. Lower support sits around $18 near previous trading ranges from late October and early March.
Wall Street Remains Bullish on Prospects
Four analysts rate IonQ as a Strong Buy with one neutral rating. The average 12-month price target stands at $40. This represents 13% upside potential from current levels.
The stock has more than doubled since early April lows. Investors are betting quantum computing will transform drug discovery, cybersecurity, and finance sectors.
CEO de Masi’s comments Thursday highlighted the company’s ambitions in the quantum space. The recent acquisitions and contract wins support the growth strategy. IonQ closed Thursday at $45.79 with the quantum computing sector gaining momentum across Wall Street.
