Could IonQ Be the Nvidia of Quantum Computing?

Nvidia (NASDAQ:NVDA | NVDA Price Prediction) stock’s profound generational rise to the very top of the market has made a lot of everyday investors a lot of money. And while there may still be ample upside to be had from current levels (many analysts still think the name is a great buy right here, as they hike their price targets), it’s becoming tougher to chase the name now that it’s a $4 trillion behemoth. Indeed, it’s become a more obvious AI tech play and one that may not be in for the same magnitude of transformative gains that it had posted in the previous decade. 

While it’s very difficult to pin down what the next Nvidia could be, I do think that investors who can spot winners from the emerging quantum computing market could have the potential to do extraordinarily well. And while the gains from a quantum winner may or may not compare to those posted by Nvidia in recent years, I do think that those who do spot a firm that has what it takes to gain share in quantum may wish to consider hanging onto their long-term positions, rather than jumping out at a perceived top.

Indeed, Nvidia is a name that’s continued to find a way higher despite the bearish calls of some and even in the face of big-name short-sellers.

Can IonQ really become a force in quantum?

Of course, the visionary genius behind Nvidia, Jensen Huang, is a major reason why his firm enjoyed such a meteoric rise. Without an exceptional top boss and management team, it’s tough to seize a market opportunity, no matter how large. In any case, IonQ (NASDAQ:IONQ) may be perceived as an early winner in quantum with all the tools to become a heavy hitter as the next big tech trend looks to take off over the coming years and decades. 

Like the great Jensen Huang, IonQ’s CEO, Niccolo de Masi, has a bold vision of the future of tech. He thinks his firm could become “the Nvidia of quantum computing.” That’s a bold statement, to say the least. And while it’s a statement that’s sure to draw significant attention from retail traders, especially those with their sights set on the next big technological boom, I do think that only time will tell if IonQ has what it takes to take a page out of the Nvidia playbook.

For now, some of the right growth levers seem to be in place. There’s a massive, emerging technological market, and there’s a profoundly ambitious top boss who’s fully focused on growth. That said, with a number of firms looking to innovate on the front of quantum computing, including some much larger rivals in International Business Machines (NYSE:IBM), it certainly won’t be easy to rise up and become a leader in a market with a timeline that’s still hazed in uncertainty.

The race to useful quantum is on.

In any case, the race towards fault-tolerant, useful quantum computers is on. And IonQ is one of the intriguing horses to bet on, especially on recent strength. The company’s recent collaborations (think drug-discovery) and acquisitions are very encouraging, not just for IonQ but for the quantum timeline as a whole.

With the stock nearing prior all-time highs again, the price of admission may seem to be getting a tad lofty. But some analysts (like those with price targets north of $50) still see upside to be had from current levels, especially as the company aims to innovate not just in quantum computing but quantum networking.

Such a unique approach, I think, makes IonQ one of the most interesting hyper-growth plays on the market right now. Though I have no idea if IonQ will become an “Nvidia of quantum computing,” I think there’s no denying the excitement factor surrounding the name. Personally, I’m in no rush to load up on the name, especially after more than quadrupling in just a year. The 212 times price-to-sales (P/S) multiple (that’s sales, not earnings) may also set the stage for amplified volatility in the second half.