From Nasdaq: 2025-06-09 15:00:00

NVIDIA Corporation leads in the AI chip market, with customers like Microsoft and Alphabet. Quantum computing, an emerging field, has potential for growth. IonQ, a key player, has seen a 374.7% surge in shares. Can it be the NVIDIA of quantum computing? Concerns about profitability and hype surround IonQ’s future.

IONQ expects the quantum computing market to exceed $1 trillion by 2035. Its unique system benefits companies like Microsoft and Amazon. Despite flat revenues and losses, CEO Niccolo de Masi remains optimistic about IonQ’s future, comparing it to NVIDIA’s growth trajectory.

IONQ’s CEO speculates on a potential acquisition by a tech giant for “hundreds of billions,” driving share gains. However, the company’s valuation is currently at $9.668 billion, raising questions about its sustainability. With profitability concerns and slow progress in quantum computing, IonQ’s path to success remains uncertain.

Amidst the hype, IonQ’s revenue has grown at a 170% CAGR since 2021, attracting risk-tolerant investors. While the company shows promise, the real-world applications of quantum computing are years away. It’s premature to deem IonQ as the next NVIDIA. IonQ currently holds a Zacks Rank #2 (Buy) with a projected earnings growth rate of 69.9%.

A new top chip stock, 1/9,000th the size of NVIDIA, shows potential for growth in the semiconductor market. With strong earnings growth and an expanding customer base, it’s positioned to meet the demand for AI, ML, and IoT. Global semiconductor manufacturing is projected to reach $803 billion by 2028.



Read more at Nasdaq: Can IONQ be the Next NVIDIA, and Is It a Buy?