In the fledgling field of quantum computing, IonQ (IONQ 8.07%) has emerged as one of the leading start-up investment options. It holds key contracts with top players in the quantum computing field, like the Air Force Research Lab, and offers top-notch technology.
Although it's far from a surefire bet, is this quantum computing start-up the best chance at transforming a meager investment into $1 million? After all, quantum computing has the potential to transform high-powered computing. Let's take a closer look.
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1. IonQ's error correction is among the best
Quantum computing can potentially be an absolute game changer in the high-powered computing world. It lets users tackle problems they've never been able to fully model before (like weather patterns and logistics networks), but it also could have massive implications for artificial intelligence (AI). Quantum computing could deliver huge value for whichever company can win the quantum computing arms race, but each competitor must solve a key problem first: errors.
Unlike traditional computing, quantum computing doesn't have a clear black-and-white answer. While traditional computers use bits to transmit information, which can only be in the form of a 0 or a 1, quantum computing uses qubits. While qubits collapse down to a 0 or a 1 when measured, they can exist in a state between 0 and 1 during the calculation process. This opens up many possibilities within a calculation, which is why quantum computers could perform better at workloads with thousands of possibilities.
The best way most companies have found to deal with this error issue is to let the qubits interact with each other to reduce errors. While many competitors have placed their qubits in a grid-like system to let the qubits interact with their neighbors, IonQ has taken it a step further. They use all-to-all connectivity, which lets every qubit interact with every other qubit. This leads to unparalleled 2-qubit gate fidelity, and IonQ's process already has greater than 99.9% fidelity.
This shows that IonQ has already made a fantastic start on the most critical problem with quantum computing, which is why it has several key partnerships.
2. IonQ holds several critical contracts
IonQ holds one of the largest contracts in quantum computing with the U.S. Air Force Research Lab, a facility known for testing cutting-edge technologies. This indicates that quantum computing is not just a future technology; it can be used in its current state.
To further support this option, IonQ hardware is available for use on the three major cloud computing providers: Microsoft Azure, Alphabet's Google Cloud, and Amazon Web Services. With IonQ's hardware becoming more widely available, it's making key progress in this race. If it can differentiate itself from its competitors and start to capture a customer base, it could create a foothold that would be hard to disrupt.
3. There's a huge market opportunity for quantum computing
To circle back to the original question, can IonQ be a millionaire-maker stock? I'm not sure. There's a huge market for quantum computing in the future, but it's not that large right now. IonQ estimates that the market opportunity will reach $87 billion by 2035, but it's unlikely that one company will capture that complete market share.
Even if IonQ captures 50% of it and generates around $40 billion in annual revenue, that's still less than another key quantum computing competitor, IBM. IBM is about a $270 billion company -- about 27 times the size of IonQ.
So, can IonQ transform $10,000 into $1 million? Likely not. But can IonQ deliver strong stock performance if it wins the quantum computing arms race? Absolutely. However, this is far from a surefire bet, as the field is ripe with potent competition, and IonQ still has years to go before proving commercial relevancy.
