Valued at a market capitalization of $8.9 billion, IonQ (IONQ) develops quantum computers and associated quantum networks, providing access to quantum systems through major cloud platforms including those from Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL). 

IONQ stock has surged over 400% in the last 12 months, driven by optimism surrounding the quantum computing industry. Earlier this week, IonQ announced a $1.075 billion acquisition of United Kingdom-based Oxford Ionics, positioning the company to accelerate its quantum computing roadmap and strengthen its market position. 

The deal combines IonQ’s quantum computing platform with Oxford Ionics’ ion-trap-on-a-chip technology that can be manufactured using standard semiconductor fabrication processes.

The acquisition represents a strategic consolidation in the evolving quantum computing industry, bringing together complementary technologies and expertise. Oxford Ionics holds world records for quantum operation fidelity, while IonQ provides established customer relationships and global distribution capabilities through major cloud platforms.

The combined entity aims to achieve ambitious technical milestones. This includes 256 physical qubits with 99.99% accuracy by 2026, advancing to over 10,000 physical qubits by 2027, and reaching 2 million physical qubits by 2030. These developments support IonQ’s goal of achieving fault-tolerant quantum computing with 80,000 logical qubits within the decade.

With quantum computing projected to generate up to $850 billion in global economic value by 2040, this acquisition positions IonQ to capitalize on the increasing demand from enterprises. 

Is the Quantum Computing Stock a Good Buy Right Now?

In Q1 2025, IonQ reported revenue of $7.6 million, a 0.2% decrease year over year. While still unprofitable, it maintains a robust balance sheet with nearly $700 million in cash equivalents, providing sufficient flexibility to support its cash burn rates. 

IonQ also unveiled plans to acquire Boston-based Lightsynq, whose Harvard-spun quantum memory technology will accelerate its path to achieving millions of qubits and enable the development of a quantum internet. Lightsynq’s quantum repeater capabilities extend network range beyond the current 20-mile limitation to hundreds of miles, addressing a critical infrastructure bottleneck.

Moreover, IonQ announced the acquisition of Capella, a Colorado-based company, bringing space-based quantum key distribution expertise and top-secret contracting capabilities. This positions IonQ to compete with Chinese advances in satellite quantum communications while expanding into the defense sector.

The company successfully sold another Forte Enterprise system to EPB for $22 million, establishing the first commercial hub for quantum computing and networking. This deployment showcases IonQ’s distinctive ability to integrate quantum computing with advanced quantum networking capabilities.

Management projects that these acquisitions will be revenue-accretive, expanding IonQ’s addressable market. It reaffirmed full-year revenue guidance while increasing adjusted EBITDA loss projections by approximately 35% due to expanded investments. IonQ’s comprehensive approach to quantum computing, networking, and space communications creates multiple growth vectors in the rapidly evolving quantum technology landscape.

Is IONQ Stock Overvalued?

Analysts expect IonQ’s revenue to increase from $43 million in 2024 to $750 million in 2029. Over the next five years, Wall Street anticipates net losses of nearly $800 million, indicating that the company will potentially need to raise additional capital through debt or equity financing. 

Priced at 14 times 2029 sales, the quantum computing stock trades at a hefty premium today and might pull back significantly from current levels if market sentiment deteriorates. Out of the five analysts covering IONQ stock, three recommend “Strong Buy,” one recommends “Moderate Buy,” and one recommends “Hold.” The average target price for IONQ stock is $40, which is in line with the current trading price.