IonQ (IONQ) stock plunged over 40% on Wednesday, hit hard alongside other quantum computing stocks following comments from NVIDIA CEO Jensen Huang.
Speaking at NVIDIA’s (NVDA) analyst day, Huang addressed the timeline for quantum computing's maturity, stating, “If you said 15 years for very useful quantum computers, that would probably be on the early side. Huang followed up with “If you said 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
His remarks cast a sobering perspective on the sector, leading to significant selloffs across the quantum computing industry, including Rigetti Computing (RGTI) shares.
IonQ generates revenue from its quantum computing services. The company earned $12.4 million in Q3 2024. That figure represented a 102% increase from the previous year. For 2024, the company expected annual revenue between $38.5 million and $42.5 million.
The company is not yet profitable. Last quarter, IonQ showed losses of $0.24 per share. That loss came on revenue growth of 102% from the previous year. Both the earnings per share and revenue results beat Wall Street analyst recommendations. IonQ continues to invest heavily in advancing its technology, aiming for long-term profitability as quantum computing adoption grows.
IonQ's latest quantum computer, the IonQ Forte, features 36 algorithmic qubits and is accessible through major cloud providers.
In 2024, IonQ partnered with Oak Ridge National Laboratory to create a noise-tolerant quantum algorithm that boosts efficiency by reducing gate usage.
By 2025, IonQ aims for over 99.9% gate fidelity and plans to scale systems to thousands of qubits using photonic interconnects. These advancements aim to make quantum computing more practical and accessible for real-world applications.
Today’s drop in value dropped IONQ shares to close at $30 per share. The number represents a round number that may provide support for shares over the coming week.
Volume in IONQ has been less volatile over the last two months as the stock ascended from $15 to $55. The consistent volume suggests more long-term may have been buying the stock versus more erratic volume spikes caused by wilder speculation.
Today’s close does represent a move below the stock’s 50-day moving average. That trendline is in a bullish pattern, currently residing at $32.11.
A move back above this trendline will act as a catalyst for more buyers to move into the stock, improving the intermediate-term outlook with a target price of $50.
