Four Facts That IonQ Stock May Increase Your Wealth by 2024


Don't ever say never. Despite popular opinion, some extremely strong stocks don't go away for years at a time

The saying "lightning never strikes the same place twice" is surely familiar to you. According to investors, the notion implies that a stock won't see two exceptionally positive years in a succession

The truth is that lightning can and often does strike the same spot twice. Skyscrapers and tall trees are common targets. Similarly, a hot ticker can record two significant annual gains in a row. All you need to do is locate the ideal stock

 It will undoubtedly be difficult to top the 280% return that IonQ (IONQ -6.35%) shares delivered in 2023, but there's no reason to believe 2024 can't be another prosperous year. As a matter of fact, IonQ stock has four distinct reasons to believe that the upcoming year will be profitable. Not in any specific order

The promise of quantum computing is becoming more widely recognized

The majority of investors have probably heard of "quantum computing." It's safe to say, though, that most investors don't really understand what it is or why it matters; the major participants in the emerging market haven't exactly made it simple for the general public to comprehend

The practical application of quantum computing to power more recognizable technologies for investors, such as artificial intelligence (AI) and generative AI in particular, will usher in this understanding. It so happens that IonQ is entering this particular segment of the artificial intelligence industry. Expanding on its previously formed generative AI cooperation, the company stated in August that it has reached an agreement with Zapata AI "to uncover new potential advantages of quantum computing that could help solve complex real-world business problems

Though the precise nature of any final product resulting from this collaboration is still unknown, the companies are looking for answers to real-world business issues. For potential investors, it will be projects like these that demonstrate how IonQ's technology works in the real world

 The technological benefits of IonQ will be emphasized

There will probably be additional benefits for IonQ shares as quantum computing becomes more widely accepted and understood. That is, they will emphasize how, thanks to its more straightforward quantum computing approach, IonQ is light years ahead of many of its competitors in terms of real-world application

However, this is the year that things might shift, which would then alter how investors perceive businesses in the industry

To put it simply, quantum computers, as opposed to the majority of contemporary computers, use subatomic particles such as ions, photons, or electrons to do computations. This explains why quantum computers are a billion times quicker than traditional ones

However, more than one type of subatomic particle can be used as the building block of a quantum computer. The trapped-ion method developed by IonQ is among the simplest to apply and market. And the business is doing precisely that

This is not the case for the majority of other companies creating platforms for quantum computing. Consider Google (GOOG -0.25%), Alphabet's (GOOGL -0.39%), and IBM (IBM -0.12%) as instances. While IBM is expected to release a less potent quantum computing platform a little sooner, both companies intend to provide utility-scale quantum computing solutions by 2030. These systems are based on superconducting-based qubits, which are expensive and challenging to use. Similarly, Microsoft's (MSFT 0.20%) efforts in quantum computing, which depend on rather uncommon Marjorana particles, are comparable

In the end, these substitutes might have more processing power than trapped-ion technology from IonQ, which would allow for more accurate issue solution. However, it will take years before the technology is ready for broad commercial application. Right now, IonQ is producing more than capable trapped-ion quantum computers that are operational and available for purchase. The company's $6.1 million in revenue from the previous quarter and $26.3 million in sales commitments made over the same three-month period demonstrate that businesses and institutions are prepared for higher-level computing solutions, even if those solutions are not exactly state-of-the-art in ten years

 A significant turning point is approaching

In terms of technology, IonQ expects to make significant progress in 2024, laying the groundwork for a technical "quantum leap" in 2025, as it continues to improve its trapped-ion quantum computing devices

First things first, though

Investors who are following the developments in quantum computing are likely familiar with the phrase algorithmic qubits, or AQ for short. This is a measurement of how many subatomic particles are active at any one moment in a quantum computing system. To put it more simply, it's a measurement of processing speed or power. Forte, IonQ's most potent quantum computing platform, has a #AQ number of 29, but the company anticipates producing systems with #AQ values of 35 by 2024

What could change the game, though, is likely to occur the next year. IonQ anticipates being able to provide quantum computing platforms with #AQ scores of 64 by 2025

This is a significant accomplishment. According to IonQ's third-quarter earnings statement, The company believes that in reaching this #AQ milestone, its systems will deliver quantum advantage for certain use cases and classical computers will no longer be able to fully simulate an IonQ system

Achieving a #AQ of 35 alone will probably highlight the possibility of achieving a #AQ score of 64

Acquisitions and mergers are in the works

Finally, because IT behemoths and other quantum computing startups are trying to figure out how to better position themselves to take advantage of what is obviously a huge potential, 2024 might be another strong year for IonQ stock

That is not a forecast that IonQ will be purchased (which, incidentally, is a terrible reason to own shares on its own). However, IonQ can profit from a general rush to enter or further penetrate the market without having to locate a customer. Just the demand for the intellectual property of other developers might be sufficient to drive IonQ shares up to even higher prices

Nor is that a forecast that was made at random. Bigger IT businesses will "increasingly seek strategic alliances, collaborations, and above all, potential acquisitions to solidify their positions" inside the quantum computing field this year, according to senior manager and physicist Gernot Berger of Germany's investment management organization VC HTGF. For the simple reason that "research results have been promising, which is liable to attract big companies that have sat on the sidelines," Matt Swayne of Quantum Insider forecasts a surge of dealmaking this year. CEO of IonQ Peter Chapman anticipates that the rush to purchase and/or develop conversational AI solutions that occurred last year after ChatGPT became widely accessible will resemble the quantum computing industry's actions in the upcoming year

Whatever is coming up in this area should be good news for IonQ shares

Recognize the danger, but don't discount its possibilities

IonQ shares: another surefire mega-gain in 2024? No, stock selecting has no certainties, not even with a great story like this one from the company

Although interest in and knowledge of quantum computing are beginning to grow, institutional support for these businesses and quantum computing initiatives is dwindling as investors are growing more selective about the initiatives they wish to support. Funding decisions are increasingly being made based on practical income possibilities. Swayne of Quantum Insider points out that quantum start-ups' stock is simply "really freaking expensive." That's a challenge, to be sure, and the fact that IonQ is still losing money makes it even more so

However, it's a dynamic that, rather than acting against IonQ's hand, might actually strengthen it. The industry is beginning to realize the promise of quantum computing, and the company now has actual, workable solutions to offer; generative AI is currently an extremely intriguing possibility. In keeping with this, experts predict that IonQ will post top-line growth of around 80% in 2024, coming off of a probable 95% sales rise in 2023

It's an above-average risk, for sure, and the stock will continue to see above-average volatility with near certainty. If you can handle both, IonQ's stock might see further success this year

Would you be better off investing $1,000 in IonQ now?

Prior to purchasing IonQ shares, take into account:

The Motley Fool Stock Advisor analyst team has determined the top ten stocks that investors should purchase right now. IonQ was not among them. In the upcoming years, the ten equities that made the cut might yield enormous profits

When Nvidia created this list on April 15, 2005, you would have $303,410 if you had invested $1,000 at the time we suggested it

Stock Advisor gives investors a clear road map for success that includes monthly stock recommendations, regular analyst updates, and advice on constructing a portfolio. Since 2002*, the S&P 500 return has been almost four times higher thanks to the Stock Advisor service

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