IonQ Stock Climbs 37% in Quantum Leap: should you still buy?

IonQ (NYSE: IONQ), a leading player in the quantum computing sector which holds contracts and partnerships across government, enterprise, and academic sectors, recently saw its stock price skyrocket by almost 37%, closing at $45.79 on Thursday. This dramatic surge in share price comes as a result of CEO Niccolo de Masi’s bold and optimistic assertion that IonQ may become the “Nvidia of quantum computing.”

Although market enthusiasm is building and wall street is taking notice, partly spurred by sector-wide momentum in quantum computing, noting D-Wave Quantum’s recent unveiling of its Advantage2 system, its most advanced and performant system to date, it is worth pointing out that IONQ remains unprofitable given the company reported $7.6 million revenue, little change year over year, with a net loss of $32.3 million in Q1 of 2025, which is still an improvement from the $39.6 million loss in the same period the previous year but not enough to suggest the current stock price will continue to climb without some sharp pullbacks in the short-term.

However, it is worth noting that IonQ’s stock has already climbed over 400% in the past year, underscoring strong bullish sentiment. It also has the largest market cap of any pure play quantum-computing companies stock at approximately $11.32 billion as of 23 May 2025, making it well poised to capture market share and attract new investors. However any sustained growth will depend on IONQ’s ability to convert research milestones into scalable, commercial solutions.

Nonetheless, investor sentiment also remains optimistic, which is driven largely by IonQ’s aggressive global expansion strategy, which includes its acquisitions of ID Quantique, a Swiss tech company that specialises in quantum technologies, and Capella Space, a US aerospace company that designs, builds and operates high-resolution satellites, as well as a new logistics-focused partnership with Swedish EV firm Einride. These moves indicate IONQ’s long-term ambition in the quantum computing space and are helping the company to cement its position as a leader in the quantum space.

In terms of IONQ’s valuation metrics and price, the analyst consensus 12-month price target is approximately $38.33, suggesting a potential downside of about 16% from the current price. The price targets set by analysts range from a low of $30 to a high of $50, indicating mixed expectations about the company's future performance. One analyst has even suggested the intrinsic value of the stock is $3.30 per share, implying that the stock is significantly overvalued. If that is true, then scaling into this stock at its current price would be the most pragmatic approach for cautious investors.

Remember; this is not investment advice and whatever happens in the stock market, be smart, always seek professional advice and do your own due diligence when buying individual stocks, and stay true to your investment strategy.

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