Developing next-generation quantum computing hardware and software, IonQ (NASDAQ:IONQ) represents one of Tuesday’s top performers, gaining about 25% heading into the afternoon session. Consumer technology giant Microsoft (NASDAQ:MSFT) added IonQ Aria to its Azure Quantum platform, which delivers quantum computing and optimization solutions under a single cloud service. As well, higher-than-expected sales for the company’s second-quarter earnings report bolstered IONQ stock.
Naturally, most of the attention focused on IonQ Aria’s addition to Azure Quantum. According to the company’s executive team, Aria may be the leading commercial quantum computer in the world. As Peter Chapman, president and CEO of IonQ, announced, the company is “bringing to the cloud a computer that is over 130,000 times more computationally powerful than our previous cloud offering, as defined by the useful computational space.”
Additionally, Chapman remarked that “IonQ Aria has achieved a record-breaking 23 algorithmic qubits, representing an 8x increase in Aria’s power and further cementing its lead as the most powerful known quantum computer in the world.”
As a significant sidenote for IONQ stock, the underlying company on Monday posted Q2 sales of $2.6 million. Not only did this tally beat IonQ’s upper forecast range, it also exceeded the consensus analysts’ target of $2.39 million. On the bottom line, the computer manufacturer reported a net loss of $1.7 million. Further, the company ended the quarter with $571.3 million in cash and equivalents.
IONQ Stock and the Mixed Environment Ahead
Not surprisingly, Chapman stated being “thrilled to share the progress we made in the second quarter.” As well, the Microsoft platform inclusion extended credibility to the quantum computing’s myriad practical applications. “Having IonQ Aria be available to Azure Quantum customers is exciting, as it aligns with our original goal of making quantum accessible and affordable at scale,” the CEO said.
Further, a pair of commercial deals fueled the fire for IONQ stock. First, the underlying tech firm announced a paid contract with Airbus (OTCMKTS:EADSY). Under the terms, Airbus will leverage Aria to explore optimization problems that are core to its aerospace business.
Second, IonQ disclosed a paid contract with chemistry and material science specialist Dow (NYSE:DOW). The deal will focus on exploring the boundaries of quantum computing in materials discovery research.
At the same time, many challenges face the broader integration of quantum computing, particularly fabrication, verification and architecture. Researchers note that the “power of quantum computing comes from the ability to store a complex state in a single bit. This also what makes quantum systems difficult to build, verify, and design.”
While enthusiasm is sky-high now, it’s important to point out that IONQ stock is still down around 54% year-to-date.
Why It Matters
IONQ stock entered the public arena via the issuing firm’s reverse merger with a special purpose acquisition company (SPAC). Unfortunately, SPACs’ post-business combination have significantly underperformed the benchmark equities index, with IONQ providing no exception.
However, with this latest robust surge, the quantum computing specialist has a chance to make right with early stakeholders.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.