The quantum computing sector is a great place to find stocks that have the potential to deliver massive returns. However, if one of these companies comes out with a poor testing result or loses a major client, the investment thesis for it can collapse overnight, sending the stock price tumbling.
My favorite stock in this space is IonQ (IONQ +14.92%). The company has taken the lead in quantum computing accuracy -- and that's key, as error reduction and error correction are the two central problems that must be solved before the technology can start being widely deployed. Analyst John McPeake of Rosenblatt Securities has a $100 price target on the stock, which means he thinks it could triple from here in the next year.
So, should investors buy the stock now?
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IonQ is delivering promise growth
While McPeake is the most bullish of the analysts covering IonQ, the consensus on the stock is also positive. The average price target is $65, which is still double today's stock price of about $32.50. In fact, the lowest one-year price point is $35 per share, showing that IonQ's stock may be undervalued as is. But it is now down by about 66% from the high of more than $84 it hit in October.
If you look at how the company is doing, it's clear that IonQ's solutions are starting to gain traction. In the fourth quarter, it recognized $62 million in revenue -- up 429% year over year. That came from a combination of research contracts and some early-stage system sales, but it showcased that demand for quantum computing technology is rapidly rising. Overall, in 2025, the company recognized $130 million in revenue. For 2026, that figure is expected to increase to $235 million.
NYSE: IONQ
Key Data Points
Still, there is no guarantee of success for the company over the long term, and attempting to value it using traditional metrics like the price-to-sales ratio doesn't work well because they don't take into account the potential market opportunity that IonQ could benefit from if its products become mainstream winners in the space. Instead, I think investors are better off looking at IonQ like a biotech stock.
Its tech may or may not work out, but all indications are that IonQ's early-stage trials are going well. As a result, it is trading at a premium over some of its competitors. There is still huge room for upside if it can bring a commercially viable product to market, but there's still a possibility that another company's products will surpass it or that its later-stage trials will flop. Successful investors avoid loading up on early-stage biotech companies too heavily due to their high-risk nature. But they may want to get a small amount of portfolio exposure and add to their positions as such companies report more successes.
I think that's the smart way to think about IonQ's stock. Buy a little bit now, then add to your position over time if the company's path toward success becomes clearer.
