B. Riley Initiates Buy on IonQ (IONQ), Citing Quantum Growth

IonQ, Inc. (NYSE:IONQ) is one of the best tech stocks to buy according to hedge funds. On August 27, B. Riley’s analyst Craig Ellis initiated coverage of quantum computing stock IonQ, Inc. (NYSE:IONQ). Ellis gave IonQ a Buy Rating along with a 12-month price target of $61. As of September 2, the stock was trading at $42.42, which implies an upside of 43.8%.

Ellis noted that the company is the sector’s revenue growth leader, with three consecutive years of 100% year-over-year growth. Ellis cited the “progressing” pipeline, with a fifth-generation product set to launch later this year.

The company is making huge strides with a focus on its trapped-ion technology. The trapped ion technology helps generate extremely reliable quantum bits (qubits) that can stay stable for a long time and work accurately.  This is crucial for solving extremely complex problems that conventional computers can’t handle. The trapped Ion technology also provides a cost advantage over other methods like superconducting qubits.

IonQ, Inc. (NYSE:IONQ) has also acquired some companies to help expedite its progress in quantum computing. For example, it acquired Oxford Ionics, a company that develops technology promising higher ion trap density, which helps improve computing power.

While we acknowledge the potential of IONQ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.