IonQ, Inc. (IONQ): A Bull Case Theory

We came across a bullish thesis on IonQ, Inc. (IONQ) on WallStreetBets subreddit page by Maestroszq. In this article, we will summarize the bulls’ thesis on IONQ. IonQ, Inc. share was trading at $10.84 as of Oct 14^th.

IonQ is a leading quantum computing company, specializing in hardware development and aiming to commercialize quantum technology. The company went public via SPAC in 2021 and has doubled its revenues every year since then, positioning itself as a frontrunner in the quantum computing space.

IonQ generates revenue by building quantum computers that can solve problems beyond the capabilities of classical systems. The company is focused on developing quantum applications for industries such as cryptography, energy savings in AI, and machine learning, with plans to commercialize these applications in the near future.

Investing in IonQ offers a compelling case due to several catalysts. First, IonQ holds a substantial number of patents, building a strong competitive edge in the quantum space. The company is also commercializing its technology by building a factory that produces quantum computers on an assembly line, allowing for rapid scaling. The upcoming launch of its Forte Enterprise quantum computer, which can operate without ultra-low temperatures, is another key driver of future growth.

Financially, IonQ’s consistent doubling of revenue every year since 2021 highlights strong growth potential, though its stock remains discounted by Wall Street. Short-term catalysts include the November earnings call, where IonQ is expected to announce its first quantum application, and the December launch of its most powerful system in Switzerland. With projections for quantum computing to become a multi-billion-dollar industry, IonQ’s leadership in this space, combined with its technological advancements could see substantial returns heading into 2025.

IonQ, Inc. is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held IONQ at the end of the second quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of IONQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IONQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.