$IONQ Leading The PackWith quantum computing becoming a hot topic, IonQ, Inc. (NYSE: IONQ) has been making strides this year with IONQ stock up 166% YTD. After hitting its Algorithmic Qubit (AQ) target for 2023 in Q1 and publishing a paper on modeling human cognition using quantum computing, IONQ could be on track to become an undisputable industry leader. In light of this, IONQ stock could be one of the best quantum computing stocks to buy in 2023.
IONQ Fundamentals
IONQ’s Roadmap
Hitting the 29 AQ target this early marks the end of phase 1 of IONQ’s roadmap with 9 months to spare. Traditional computers are expected to double in power every 2 years, but with every new AQ that IONQ adds, the power of its systems roughly doubles in power. With IONQ reaching 29 AQ in Q1 2023, that means that IONQ’s systems double in power almost every month to reach a 16-fold increase in computational power.
IONQ’s next target is 35 AQ which will represent a 64-fold increase in computational power. In this way, IONQ will be able to work on quantum machine learning and artificial general intelligence (AGI).
In addition, IONQ completed the construction of its second Aria-class quantum computer Aria 2 which will join Aria 1 on the public cloud this quarter. It is worth noting that IONQ has the most powerful commercially available quantum computer in the market, which makes it the first destination for institutions looking to utilize quantum computation.
That is extremely important for IONQ since the quantum computing market is forecasted to grow to $4.7 billion by 2029. If IONQ is able to attract the majority of this market, the company could be in a prime position to grow financially which would reflect on the IONQ stock price.
New Partnerships
Hence the new partnership with the United Arab Emirates Quantum Research Center makes sense for both sides as the UAE is exploring how quantum computing can give it a competitive edge. IONQ also entered a new enterprise partnership last April with BearingPoint, the global management and technology firm.
These new partnerships may be the reason why IONQ has increased its revenue forecast for the full year from $18.4 million to $18.8 million to $18.8 million to $19.2 million, especially since IONQ beat its Q1 revenue estimates by 13%. Additionally, IONQ forecasts its Q2 revenue to be between $4.1 million and $4.5 million. With the company continuing to grow its AQ at a rapid pace, IONQ could beat its own estimates since it could secure more lucrative deals this year.
IONQ Financials
In its Q1 2023 report, IONQ’s assets decreased 2% QoQ from $597 million to $587 million and its cash and cash equivalents increased almost 16% QoQ from $44 million to $51 million. IONQ’s total liabilities decreased 16% QoQ from $35.6 million to $29.7 million.
In terms of revenues, IONQ witnessed a 120% YoY increase from $1.9 million to $4.3 million. Meanwhile, operating costs increased by 60% from $20 million to $32 million. As a result, operating loss increased nearly 55% YoY from $18 million to $28 million which amounted to a net loss of $27 million – a 538% increase YoY.
Technical Analysis
IONQ stock’s trend is neutral with the stock trading in a sideways channel between $9.15 and $11.06. Looking at the indicators, the stock is trading below the 21 and 50 MAs, which are bearish indications and is trading above the 200 MA which is a bullish indication. Meanwhile, the RSI is oversold at 29 and the MACD is approaching a bullish crossover.
As for the fundamentals, IONQ stock’s latest catalyst was its earnings earlier in May. As for future catalysts, IONQ reaching the 35 AQ milestone will be a huge catalyst since it will enable it to start working in quantum computing machine learning and its Q2 earnings will be another catalyst to see if the company is able to continue growing its revenues. In that case, the current PPS could prove to be a good entry point considering that IONQ is trading near support.
IONQ Forecast
As of Q1 2023, IONQ is ahead of its roadmap targets since it reached the year’s target of 29 AQ 9 months earlier. Moreover, the quantum computing market is forecasted to reach $4.7 billion by 2029 which would see IONQ as the main beneficiary as it is one of the largest players in the quantum computing space. IONQ has also made new partnerships with the United Arab Emirates Quantum Research Center and BearingPoint, further cementing IONQ’s position as a leader in the quantum computing sector. IONQ stock is currently one of the most exciting quantum computing stocks and is certainly worth keeping an eye on.
