The Zacks Analyst Blog Highlights IonQ, Microsoft, Amazon.com, Alphabet and NVIDIA

For Immediate Release

Chicago, IL – August 20, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: IonQ, Inc. IONQ, Microsoft Corp. MSFT, Amazon.com, Inc. AMZN, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA.

Here are highlights from Tuesday’s Analyst Blog:

Can IONQ Become the NVIDIA of Quantum Computing, and Is It a Buy?

IonQ, Inc.’s shares surged 457.9% over the past year, driven by its significant advancements in quantum computing. IonQ has offered its customers quantum systems via platforms like Microsoft Corp.’s Azure, Amazon.com, Inc.’s Amazon Web Services, and Alphabet Inc.’s Google Cloud.

IonQ now aims to position itself as the NVIDIA Corp. of quantum computing. Will it be able to achieve this goal, and is this an opportune moment to invest in its shares? Let’s find out –

Reasons to Be Bullish on IONQ

IonQ has prepared the groundwork for its quantum computers to seamlessly integrate into real-world applications. IonQ is preparing compatible trapped-ion quantum computers for major cloud platforms. IonQ has already acquired several companies, including Qubitekk, ID Quantique, and Lightsynq Technologies, to enhance its presence in the quantum field and has secured contracts from the U.S. Air Force Research Lab, which is expected to drive significant growth for the company in the next two years.

IonQ’s revenues have increased significantly since its initial public offering in 2021. Management projects revenues between $82 million and $100 million this year, significantly higher than $43.1 million in 2024.

The company is on a positive trajectory, having reported second-quarter revenues of $20.7 million compared to $11.4 million last year, and anticipates third-quarter revenues of $25 million, nearly double the previous year’s figures. This revenue growth indicates that the company’s acquisition strategy is effective and its business model is solid.

Can IONQ Become the NVIDIA in Quantum Computing?

IonQ aspires to become the NVIDIA of quantum computing by relying on consistent revenue growth and successful acquisitions, with more anticipated in the future. However, despite revenue growth, IonQ hasn’t generated any profit. In the second quarter, IonQ had an operating expense of $181.3 million, which resulted in an operating loss of $160.6 million, way more than $48.9 million loss a year ago.

The operating loss exceeded revenue growth, which can compel IonQ to face financial challenges and jeopardize its aim to become the NVIDIA of quantum computing. NVIDIA, in reality, is in a better position to compete against pure-play quantum computing stocks like IonQ. This is because NVIDIA aims to integrate its graphics processing units (GPUs) and quantum processing units (QPUs) in a hybrid quantum system to efficiently manage calculation errors. Utilizing its GPU framework serves as an effective bridge from current classical computers to quantum technology.

Additionally, in contrast to IonQ, NVIDIA has reported an operating income of $21.6 billion in the fiscal first quarter, up 28% year over year. Its revenues also jumped 69% year over year to $44.1 billion. Being a profitable enterprise will enable NVIDIA to effectively tackle the challenges of quantum computing and expand its operations. Therefore, it is premature to determine that IonQ could become the NVIDIA of quantum computing.

Here’s How to Trade IONQ Stock Now

The series of acquisitions indicates that IonQ has bold plans to grow in the quantum computing industry, which is projected to reach a value of $100 billion by 2035, according to McKinsey. This should encourage stakeholders to remain invested in IonQ stock.

However, new investors should proceed with caution. Quantum computing is still in its early stages, and IonQ is not yet profitable. Several leading CEOs have stated that the widespread use of quantum computing technology is still years away and that it remains prone to errors. Therefore, IonQ is a risky investment suitable only for high-risk-tolerance investors.

Let’s not forget that IonQ is an overpriced stock and could see its price fall when the market corrects itself. IonQ’s forward price-to-sales (P/S) ratio stands at 126.59 compared to 4.14 for the Computer-Integrated System industry.

For now, IonQ has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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