Maryland-headquartered IonQ (NYSE:IONQ) specializes in quantum computing, a type of computing that uses the properties of subatomic particles to perform simulations and calculations which would not otherwise be practical. This might sound complicated, but the bull case for IONQ stock is simple and compelling.
To be frank, the IonQ share price is down even while the company is moving forward with its state-of-the-art technology. Furthermore, IonQ’s financials aren’t perfect, but there’s the potential for revenue growth.
So, if you’re seeking pure-play exposure to the quantum computing market, don’t sleep on IonQ. After discovering what the company’s been up to lately, you might even decide to buy and hold a few shares.
What’s Happening with IONQ Stock?
Believe it or not, IONQ stock has gone as high as $35.90 during the past 12 months. But also, not long ago, the stock hovered near the $6 level. In other words, there’s volatility and risk to contend with, but also strong upside potential.
What could catalyze a comeback? Most likely, it will be IonQ’s amazing technology products — and the company just introduced one, called Forte.
First, a little bit of science (if you don’t mind). In quantum computing, the basic unit is a qubit. A qubit is essentially quantum computing’s analogue to a bit in classical computing.
Forte is a system with “capacity of up to 32 qubits,” which is quite powerful. Plus, Forte has acousto-optic deflector (AOD) systems that are “capable of addressing up to 40 individual ion qubits, and is currently configured to use 31 of them.”
Looking for Solid Growth
IonQ Chief Technology Officer Jungsang Kim is clearly excited about Forte, saying, “We can’t wait to get these systems in people’s hands.” However, investors will surely be more enthusiastic if IonQ’s fiscal stats are positive.
Fortunately, IonQ has delivered the data that prospective investors are looking for. During 2022’s first quarter, IonQ generated revenue totaling $2 million. Even better, the company’s anticipates second-quarter revenue between $2.3 and $2.5 million, which would represent solid quarter-over-quarter growth.
On top of all that, IonQ reiterated its full-year 2022 revenue outlook of $10.2 million to $10.7 million, which would be over 300% revenue growth year over year. Granted, the company didn’t post a profit in the first quarter, so that’s an area of potential improvement for IonQ.
What You Can Do Now
IONQ stock is low priced and seems to have room to run, based on the company’s cutting-edge technology and positive revenue outlook. An area to monitor for improvement is IonQ’s bottom-line results.
Still, if you’re bullish on quantum computing in general, IonQ has a “B” grade and belongs on your watch list and perhaps in your portfolio as well. On a long enough time horizon, the stock could power its way back into the double digits.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.