Growth-stock investors can often have extremely high expectations. Instead of looking for a 2x or 5x return, some want a 100-fold or more return that can turn an amount like $10,000 into $1 million.
For that to have a chance of happening, one has to find small-cap stocks in emerging industries that live up to the potential of becoming mega-cap stocks. Thus, it makes sense to evaluate whether quantum computing stock IonQ (IONQ 3.47%) can accomplish such a feat.
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IonQ's path upward
IonQ has a market cap of around $12 billion. This means a 100-fold gain would take its market cap to $1.2 trillion. So far, nine companies have higher market caps than that, making such a feat theoretically possible.
Quantum computing is a natural place for investors to seek such returns, as it stands out by running programs at an exponentially faster speed than traditional computers.
However, quantum computers also tend to have high error rates. Also, most of them do not operate at room temperature, making them impractical for average consumers and businesses.
IonQ also stands out for many reasons, one of which is producing quantum computers offering 99.99% two-qubit gate fidelity, which indicates a low error rate. That allows it to run more complex models. Additionally, IonQ's systems can operate close to room temperature, making its technology practical for data centers. Such innovations have made it a top quantum computing stock to buy right now.
NYSE: IONQ
Key Data Points
Can it stand up to the competition?
Despite competition from heavyweights like Google parent Alphabet, many analysts perceive IonQ as the leading pure-play stock in the industry.
Still, it is unclear whether it can build a sustainable competitive advantage over a well-funded company like Alphabet. The Google parent pledged to spend between $175 billion and $185 billion on capital expenditures this year, though that won't all go to quantum computing. It also holds about $127 billion in liquidity, giving it tremendous optionality.
In comparison, IonQ lost more than $510 million in 2025. With around $2.4 billion in cash, the need to invest in its technology while covering losses puts pressure on its balance sheet.
Investors get excited because companies often become large because the incumbents miss the opportunity. For example, Amazon succeeded in e-commerce in part because traditional retailers did not see the potential for online sales.
Alphabet is likely not making this mistake. It has advanced its Willow chip, which can reduce errors as it becomes faster. Such advancements indicate that Alphabet's resources could enable it to out-innovate smaller competitors like IonQ, reducing the chances of 100-fold gains in the smaller stock.
Could buying IonQ stock today set you up for life?
IonQ could theoretically set investors up for life, but shareholders should not expect such returns from the quantum computing stock.
Indeed, its error reduction and ability to operate a quantum computer at near-room temperature can be valuable to the marketplace. Unfortunately, the much wealthier Alphabet is making compelling advancements of its own. As a smaller, money-losing company, this will make it harder for IonQ to compete.
Hence, while a 100-fold gain is possible, IonQ's financial condition suggests that other outcomes are more likely for the company.
