7 Best Computer Hardware Stocks to Buy Now

3. IonQ, Inc. (NYSE:IONQ)

Stock Price as of August 9: $7.12

Average Analyst Price Target Upside as of August 9: 47.47%

IonQ, Inc. (NYSE:IONQ) is the first publicly traded pure-play quantum computing company after it went public in October 2021. The company stands out as a pioneer in the quantum computing arena, which uses its knowledge of trapped ion technology to expand the limits of computing power. Trapped ion technology is a method used in quantum computing where individual ions (charged atoms) are used as quantum bits, or qubits, which are the basic units of information in a quantum computer. The technology enables complex quantum computations that are difficult or impossible for classical computers to handle. The company’s primary mission is to develop the world’s most advanced quantum computers.

On August 7, IonQ (NYSE:IONQ) released its Q2 earnings where it posted a revenue of $11.4 million, a 106.5% increase from the same period last year, and outperformed the estimates by almost $2.75 million. The company reported a GAAP EPS of -$0.18, which beat the analyst consensus by $0.04.

For the full year 2024, IonQ (NYSE:IONQ) raised its revenue guidance to the range of $38 million and $42 million, which is almost 72% to 91% above its 2023 revenue. And for the third quarter, the company expects revenue between $9 million and $12 million.

On August 8, Craig-Hallum revised its price target for IonQ (NYSE:IONQ) and lowered it from $21 to $15, but still maintained a Buy rating for the stock. The revised price target shows a nearly 111% upside to the company’s price target, as of August 9. The firm mentioned the company’s strong performance in the second quarter and its revised future guidance.

Craig-Hallum mentioned that although IonQ’s (NYSE:IONQ) recent technical advancements in gate fidelities and error correction may not make much sense to the average tech investor, these are important metrics in the quantum computing industry. The firm noted that while the company needs to follow through on its promises, it has consistently met its targets over nearly four years since going public.

IonQ (NYSE:IONQ) has been covered by 7 analysts. The average price target of $10.50 has an upside of 47.47% to the stock’s current price, as of August 9. The company takes the 3rd spot on our list of best computer hardware stocks to buy.