Shares of IonQ (IONQ) experienced a significant surge this week, with the stock rising by 25%. This increase in stock value notably outperformed the S&P 500 during one of its most turbulent weeks in years. A significant catalyst for this upward movement was a major quantum computing initiative announced by the Pentagon.
The Defense Advanced Research Projects Agency (DARPA) revealed last week that it has chosen 15 companies to participate in its ambitious quantum computing program. This initiative aims to determine if it is possible to create a “useful” quantum computer capable of achieving utility-scale operation, meaning its computational value would surpass its cost by 2033. DARPA has been a key player in significant technological advancements over the past 50 years, with notable contributions like the internet and GPS. The announcement of IonQ’s involvement has generated excitement among investors, as the Department of Defense seeks to maintain leadership in quantum technology and stay ahead of China.
IonQ has also gained further momentum by announcing recently that its latest quantum computer, IonQ Forte Enterprise, is now available globally to customers through Amazon Web Services (AWS) and the IonQ Quantum Cloud. This development positions IonQ as a leader in the field, highlighting its focus on the practical application of its technology.
However, the IonQ Forte Enterprise is still far from becoming a robust, stable, and commercially viable quantum computer that could revolutionize the industry. The technology is still in its early stages, as evidenced by DARPA’s aim to achieve viability by 2033. The journey ahead involves extensive research and development investment with minimal revenue generation and no assurances of technological maturity. Despite these challenges, for those who understand these risks and remain interested, IonQ presents itself as a promising option in the quantum computing sector.
