4 reasons IonQ stock could make you money in 2024

You’ve probably heard the old adage that lightning never strikes the same place twice. Investors’ interpretation of this idea means that the stock will not experience two consecutive years of extreme strength.

The problem is that lightning can actually do it. and yes Hit the same place twice. Large trees and tall buildings are frequent targets. And by the same token, a hot ticker could post two big consecutive annual gains. All you have to do is find the right stock!

I got a profit of 280% Ion Q (Ion Q -6.35%) The plan announced in 2023 will certainly be a difficult step to follow. There is no reason to assume that 2024 cannot be another strong year. In fact, there are four specific reasons why next year could be another win for IonQ stock. In no particular order…

1. The world is starting to see the potential of quantum computing.

Most investors have probably heard the term “quantum computing.” But it’s no exaggeration to say that most investors don’t truly know what it is or why they should care. Start-up business leaders don’t make things precise enough for the average person to understand.

But this is a year that can change, and as a result, investors’ views on companies in that business may also change.

Driving this understanding is the practical use of quantum computers in powerful technologies that are more familiar to investors, such as artificial intelligence (AI), especially generative AI. And it turns out that IonQ has a place in a corner of the artificial intelligence market. Last August, the company announced an agreement with Zapata AI “to discover new potential benefits of quantum computing that can help solve complex real-world business problems,” expanding a previously established generative AI partnership.

What the end result of this collaboration will look like is not yet known, but the companies are finding solutions to real business problems. Practical and practical projects like this will make IonQ’s technology a realistic and practical technology for interested investors.

2. AionQ’s technical advantages will be highlighted

Mainstreaming and improved understanding of quantum computing will be another beneficial impact for IonQ stock. That said, it will highlight the fact that IonQ is years ahead of many of its competitors in terms of real-world applications with simpler quantum computing solutions.

In layman’s terms, quantum computers use subatomic particles such as ions, photons, or electrons to process calculations, rather than the metal or silicon circuits used in most modern computers. This is why quantum computers are infinitely faster than conventional computers.

However, there are several types of subatomic particles suitable for use as the basis for quantum computers. IonQ’s ion trap method is one of the easiest to utilize and commercialize. And that’s exactly what the company does.

This contrasts with most other companies developing quantum computing platforms. Take away alphabet‘S (GOOG -0.25%) (google -0.39%) with google IBM (IBM -0.12%) As an example. Both companies plan to offer utility-scale quantum computing solutions by 2030, with IBM planning to unveil a less powerful quantum computing platform slightly earlier. The superconducting-based qubits on which these systems are based are difficult and expensive to utilize. the same can be said microsoft‘S (MSFT 0.20%) Quantum computing efforts rely on relatively rare Majorana particles.

These alternatives can ultimately provide more computing power than IonQ’s ion trap technology to solve problems more accurately. However, it will be several years before the technology is ready for widespread commercial use. IonQ is building a working, commercialized ion trap quantum computer. right now It’s powerful enough. The fact that the company recorded $6.1 million in revenue last quarter and an additional $26.3 million in the same three-month period confirms that businesses and institutions are ready to use higher-end computing solutions, even if they are less than state-of-the-art. Let me do it. -Art solutions 10 years later.

3. An important milestone is approaching.

Speaking of technology, IonQ expects another big leap forward in 2024 as it continues to improve its ion trap quantum computing system, setting the stage for a technological ‘quantum leap’ in 2025.

But first things first.

Investors keeping a close eye on quantum computing have probably heard the term algorithmic qubit, or AQ for short. It is a measure of the number of atomic particles within a quantum computing system performing a function at any given time. In more basic terms, it is a measure of computing power or speed. IonQ’s most powerful quantum computing platform, Forte, boasts an #AQ figure of 29, but the company expects to produce a system that will reach an #AQ figure of 35 in 2024.

It’s something that’s likely to happen in the following years, but it could prove a game-changer. We believe that by 2025, IonQ will be able to deliver a quantum computing platform with an #AQ score of 64.

This is no small milestone. According to IonQ’s third-quarter earnings call, “The company believes that once this #AQ milestone is reached, its system will deliver quantum advantages for specific use cases and traditional computers will no longer be able to fully simulate the IonQ system.” do.

Simply reaching an #AQ of 35 is likely to attract attention to the fact that you can reach an #AQ score of 64.

4. Mergers and acquisitions are becoming more active

Finally, 2024 could be another good year for IonQ stock. That’s because tech giants and other quantum computing startups are clearly looking for ways to better position themselves to capitalize on the big opportunity.

This is not a prediction that IonQ will be acquired (which, by the way, is a poor sole basis for owning stock). But IonQ doesn’t need to find a buyer to enter the market or benefit from a widespread rush for further penetration. The demand for other developers’ intellectual property alone could be enough to push IonQ’s stock price further to a premium valuation.

Image source: Getty Images.

It’s not just a prediction pulled out of a hat, either. Gernot Berger, a physicist and senior manager at VC HTGF, a German investment management agency, believes that this year large technology companies will “increasingly seek strategic alliances, collaborations and, above all, potential acquisitions to solidify their position.” Quantum Insider’s Matt Swayne predicted a deal would happen this year simply because “the research is promising and is likely to attract large companies that have been sitting on the sidelines.” IonQ CEO Peter Chapman predicts that once ChatGPT is released to the public, the next year for the quantum computing industry will be very similar to last year’s rush to buy and/or build conversational AI solutions.

Whatever’s in the cards in this regard will likely provide a tailwind for IonQ stock.

Respect the risks, but don’t ignore the potential.

What other mega profits are guaranteed in IonQ stock in 2024? No, there are no guarantees when it comes to stock picking… not even a story as compelling as this company’s.

While awareness and understanding of quantum computing are starting to grow, institutional funding for these companies and quantum computing projects is decreasing, and financial backers are becoming more selective about the projects they want to support. Substantial profit potential is increasingly becoming a factor in financing. As Quantum Insider’s Swayne points out, quantum startups and/or their stocks are “really incredibly expensive.” This is definitely a hurdle due to the fact that IonQ remains in the red.

But this is a dynamic that IonQ unmistakably plays into the hand it is held in, rather than against. The company already has practical, tangible solutions it can sell to a market that is beginning to recognize the potential of quantum computing. Generative AI is a particularly exciting opportunity right now. In this context, analysts believe that IonQ will report revenue growth of around 80% in 2024, followed by revenue growth of around 95% in 2023.

There is certainly above-average risk, and stocks will almost certainly continue to offer above-average volatility. If you can afford both, this could be another winning period for IonQ stock.