Shares of IonQ (IONQ) have experienced a notable surge this week, with the company’s stock rising by 25%. This performance significantly exceeds the fluctuations seen in the S&P 500 during one of its most turbulent weeks in recent years.
The increase in IonQ’s stock value can be attributed to a significant quantum computing initiative from the Pentagon. Last week, the U.S. military’s Defense Advanced Research Projects Agency (DARPA) announced that it had selected 15 companies for its extensive quantum computing program. This initiative seeks to determine whether it is feasible to develop a “useful” quantum computer capable of “utility-scale operation,” where its computational value surpasses its cost, by the year 2033.
DARPA has been instrumental in pioneering major technological advancements over the past 50 years, such as the internet and GPS. The announcement of IonQ as a participant in this program has excited investors, as the Department of Defense aims to lead in quantum technology and maintain an advantage over global competitors like China.
Adding to the positive momentum, IonQ recently revealed that its latest quantum computer, IonQ Forte Enterprise, is now accessible to customers worldwide through Amazon’s Amazon Web Services (AWS) and the IonQ Quantum Cloud. This development reinforces IonQ’s leadership status in the sector as the company focuses on practical applications of its technology.
However, the Forte Enterprise is still far from becoming a transformative, stable, and commercially viable quantum computer. The technology remains in its early stages, with the DARPA program aiming for viability by 2033. Significant investment in research and development will be required, with the potential for limited revenue and no assurance of maturation. As a result, investing in quantum computing at this stage encompasses considerable risk, though IonQ presents an attractive option for those who understand these uncertainties and remain interested.
