Outside artificial intelligence (AI), quantum computing was one of the most popular investment themes in 2025. However, the sector certainly experienced a roller-coaster ride throughout the year, climbing to new heights before crashing back down to Earth. This includes leader IonQ(NYSE: IONQ), which is down more than 35% from its highs as of this writing.
Let’s see if you should be buying the stock on the dip.
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Quantum computing is an emerging technology that is still many years away from commercialization. The technology flips classical computing on its head by using what are called quantum bits, or qubits, instead of bits. Bits can be written as a zero or a one, while qubits can potentially be both through what is known as superposition.
Through entanglement, these qubits can also be linked together, allowing quantum computers to perform certain mathematical calculations exponentially faster. The problem, though, is that this approach is very error-prone.
Accuracy is the biggest strength of IonQ. While competitors like Rigetti Computing have much faster systems, none are as accurate as the 99.99% fidelity that IonQ has achieved. That’s still actually considered very error-prone, but it is much further ahead in this area compared to its competitors.
IonQ is taking a much different approach than its rivals by using what is called trapped-ion technology. The company uses real ytterbium and barium atoms instead of the fabricated qubits that other companies in the space deploy. While fabricated qubits are extremely similar, they are not identical like actual atoms are. As a result, IonQ’s trapped-ion technology is the most accurate of any quantum system.
Meanwhile, the company has said it aims to be the Nvidia of quantum computing. Nvidia’s success doesn’t just come from its powerful graphics processing units (GPUs), but also from the ecosystem it built around its chips, including its CUDA software platform and NVLink interconnect system. IonQ is planning to take a similar approach and has made numerous acquisitions in the space to acquire important complementary quantum computing technology.
One of the most important acquisitions the company made was LightSynq, which provides it with quantum interconnect technology. While one of the benefits of trapped-ion technology is that IonQ can just add more ions to increase power, this can only go so far in helping the technology scale.
LightSynq’s photonic interconnect technology will allow it to move to a modular architecture, where it will be able to link “small traps” together. These small traps are essentially individual quantum chips that hold a manageable number of ions, ensuring they remain stable and easy to control. This is similar to how Nvidia’s NVLink system connects its GPUs to help turn them into one power unit working together.
While IonQ’s revenue is still relatively modest, it has been growing quickly. Last quarter, its revenue rose more than 200% to nearly $40 million. It has also secured more than $100 million in contracts from the Air Force Research Lab.
The company was also one of 11 companies chosen by the United States government’s Defense Advanced Research Projects Agency (DARPA) to advance to Phase B of its Quantum Benchmarking Initiative (QBI). The program was founded to determine whether companies can potentially build a fault-tolerant quantum computer within the next decade.
While other quantum computing systems are much faster, over the long run, IonQ’s more accurate systems should give it a big advantage in the quantum computing race. Reducing errors is the biggest obstacle toward making quantum computing useful, and it is the company furthest along in this regard. Meanwhile, it has a ton of cash on its balance sheet to continue to make acquisitions and create an entire quantum computing ecosystem. There is no guarantee it will become the winner in the space, but right now, it is one of the best positioned.
The stock remains speculative, but it could be worth a small position to stash away and see where it ends up in 10 years.
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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ and Nvidia. The Motley Fool has a disclosure policy.
