ionQ stock jumps on CEO's quantum progress update

Investing.com -- Shares of ionQ Inc (NYSE: IONQ) climbed 8% after the company's CEO, Peter Chapman, provided an optimistic update on the timeline for delivering quantum computing value, contrasting with recent industry skepticism.

The rise in ionQ's stock price comes on the heels of a decline in quantum computing stocks last week, spurred by comments from Nvidia (NASDAQ:NVDA ) CEO Jensen Huang, who suggested that practical applications for quantum technology might be two decades away. In response, Chapman outlined the current and future capabilities of ionQ's quantum systems, emphasizing their potential to solve pressing problems that are currently beyond the reach of classical computing hardware.

Chapman highlighted ionQ's existing #AQ 36 Forte Enterprise systems, which are already aiding customers, and the planned release of the #AQ 64 Tempo systems in 2025 and #AQ 256 systems thereafter. He underscored the expected impact on strong AI, where he believes quantum AI will surpass classical AI in performance.

The CEO also pointed to the significant investments in the quantum computing sector, citing a $50 billion global investment milestone by the end of 2023. Major tech companies such as Amazon (NASDAQ:AMZN ), Google (NASDAQ:GOOGL ), NVIDIA, IBM (NYSE:IBM ), and Microsoft (NASDAQ:MSFT ) are actively investing and recruiting in this space.

Chapman mentioned ionQ's leadership in quantum networking, a market he considers to be as substantial as quantum computing itself. He touched on ionQ's track record of meeting technical and commercial milestones and projected strong results for 2024, aligning with the upper end of the company's bookings and revenue guidance.

Looking forward, Chapman expressed confidence in ionQ's trajectory, predicting profitability by 2030 with sales nearing $1 billion. This statement reflects the company's ambitious goals and its belief in the near-term business value of quantum computing.

As the quantum computing industry evolves, ionQ's stock movement today indicates investor confidence in the company's strategy and potential for growth.

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Source: Investing.com