Quantum computing analyst hikes price target on top stock for a surprising reason
Late last year, quantum computing stocks broke out from tech's shadows to become surprise Wall Street superstars.
Investors scrambled to back anything offering quantum speed and the next generation of computing power.
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Hence, in no time, the top quantum computing pure-plays went from obscurity to red-hot hotcakes, delivering jaw-dropping gains that made Wall Street sit up and take notice.
Sure, plenty of stocks rode the quantum wave, but in separating the wheat from the chaff, one name has stood out from the rest.
IonQ () has quickly become one of the most talked-about players in quantum computing, and for good reason.Unlike many of its peers, IonQ already runs systems accessible through major cloud platforms, including Amazon and Microsoft.
Its current flagship, the Forte line, packs 36 fully connected qubits, while its successor, the Tempo system, aims for 64 qubits.
That essentially points to even more power for problems even supercomputers can't crack.
What sets IonQ apart from its competition is its 'trapped-ion' technology.
Instead of the traditional superconducting circuits, IonQ relies on ytterbium atoms as its qubits.
Each atom is roughly identical to the next, giving IonQ's machines greater stability and fewer errors. Fewer errors mean more effective results when tackling drug discovery, cybersecurity, or complex simulations.
Additionally, its big promises are turning into real-world wins.
IonQ partnered with General Dynamics IT to develop quantum tools for defense and government clients.
Moreover, it recently announced partnerships with AstraZeneca, Amazon Web Services, and Nvidia to chase quantum breakthroughs in drug discovery.
IonQ isn't stopping there, as it looks to build the next layer of quantum infrastructure.
It aims to buy Capella Space to launch the first space-based quantum key distribution network, making global communications quicker and safer.
Closer to home, IonQ is betting on Texas.
It backed the new Texas Quantum Initiative, which turns the state into the go-to place for quantum research and jobs.
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Financially, IonQ's runway looks impressive. It started the year with $7.6 million in Q1 revenue and nearly $700 million in cash, keeping its full-year outlook at up to $95 million.
IonQ just got a fresh vote of confidence on Wall Street.Moreover, that follows a major boost from Texas lawmakers that could potentially supercharge its position in the quantum computing race.
Benchmark analyst David Williams reiterated his Buy rating on IonQ and stuck with a solid $50 price target, implying a 25% bump from its latest close near $41.
In addition to IonQ's position as a quantum-first mover, Williams cites tailwinds from the Texas Quantum Initiative.
Last month, Texas passed the Texas Quantum Initiative, which looks to make the state a hub for next-gen quantum computing.
IonQ's fingerprints are all over it.
CEO Niccolo de Masi testified in support of the bill and said that the company will work closely with Texas universities, lawmakers, and industry players to build a local quantum workforce.
The state's supportive new policy opens the door for more incentives and public-private research programs.
This comes when quantum pure-plays like IonQ are looking to scale up practical deployments of their technology.
With zero debt and a healthy cash pile, IonQ can effectively pounce on potential state and federal contracts as quantum moves to real-world use cases.
Nevertheless, it was a rough session yesterday for quantum-computing names, with pure-plays like IonQ closing in the red.
On Tuesday, the stock slid about 6.7% to finish at $40.10, but clawed back in after-hours trading to $40.73.
Nonetheless, the stock is still up 88% over the past three months.Quantum computing analyst hikes price target on top stock for a surprising reason first appeared on TheStreet on Jul 2, 2025
This story was originally reported by TheStreet on Jul 2, 2025, where it first appeared.
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