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IonQ: A Quantum Computing Pioneer

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IonQ Company Overview

Zacks Rank #2 (Buy) stock IonQ ((IONQ - Free Report) ) is a leading quantum computing company leading the charge in building and delivering highly effective quantum computers. The College Park, Maryland-based company was founded by two professors from Duke University who found a way to leverage “trapped-ion technology, allowing users to tackle complex computational problems that are well beyond the reach of classical computers. In addition, IonQ offers quantum systems accessible via leading cloud platforms like Microsoft’s ((MSFT - Free Report) ) “Azure” and Alphabet’s ((GOOGL - Free Report) ) “Google Cloud” so that users can experiment and apply quantum computing in their field. The company also has clients like Airbus, which uses the technology to optimize aircraft loading algorithms.

IonQ’s Quantum Computing Breakthrough

IonQ recently announced that it has reached a significant achievement in the field of trapped-ion quantum computing by creating high-speed, mixed-species quantum gates that greatly enhance the rate of computation and scalability. The research, done in partnership with the Australian National University, marks the first time ultrafast laser-driven gates have been realized, which enhance qubit interactions and decrease errors, both of which are necessary for fault-tolerant quantum networks. The company is now working to secure intellectual property (IP) rights for the innovation by filing patents on the technology, and future experiments are expected to incorporate these improvements into real-world quantum systems.

IonQ Insider Buying  

Insider buying is one of the best ways to gauge management’s conviction in their own stock. Earlier this month, insider disclosures showed that IonQ director William F Scannell wants “skin in the game.” Scannell purchased 93,066 IONQ shares for a total cost of more than $2 million. Scannell now owns 135,047 IONQ shares in total which are valued at ~$3.5 million.

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Image Source: Zacks Investment Research

Bullish Price Action

Late last year, highly respected and influential Nvidia ((NVDA - Free Report) ) CEO Jensen Huang rained on the quantum computing stock parade by saying that quantum computing is “at least a decade away.” Since then, QC stocks like IONQ have suffered dramatic drawdowns. That said, IONQ shares are finding buyers off of the rising 200-day moving average. The first tag of the moving average after a massive breakout is often an area of asymmetric reward-to-risk.

Zacks Investment Research
Image Source: Zacks Investment Research

Quantum Computing Sentiment is Shifting

Though it is inarguable that the quantum computing industry remains a speculative and early bet on the future, Wall Street sentiment is shifting to the bull camp. For instance, Huang and Nvidia reversed course and held a “Quantum Computing Day” last week. Meanwhile, IONQ industry peers like Rigetti Computing ((RGTI - Free Report) ) and D-Wave Quantum ((QBTS - Free Report) ) earn Zacks Rank “Buys,” signaling that analysts are becoming more bullish on the space.  

Bottom Line

With its innovative trapped-ion technology, partnerships with major cloud platforms, and recent breakthroughs, IonQ stands out as a promising leader in the emerging quantum computing industry.

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