Can IonQ Stock Become the Next NVIDIA - and Is It a Buy Now?

IonQ, Inc. IONQ is making significant strides in quantum computing, potentially mirroring how NVIDIA Corporation NVDA made the most of the artificial intelligence (AI) boom. However, the company is still unprofitable. So, can it really become the “next NVIDIA” and is it worth buying now? Let’s see –  

IonQ's Quantum Milestones, Major Partnerships, and Surging Revenues 

IonQ's groundbreaking achievements in quantum computing and strategic alliances have solidified its leadership in the industry. Recently, IonQ achieved a record of #AQ 64 in algorithmic qubit performance and a 99.99% two-qubit gate fidelity. IonQ has become the first quantum company to reach the ‘four-nines’ threshold, indicating reduced error rates and the ability to execute complex algorithms seamlessly.  

The acquisitions of Vector Atomic and Oxford Ionics have strengthened IonQ's full-stack quantum platform, while its partnership with the U.S. Department of Energy highlights its pivotal role in quantum ground-to-orbit-to-ground capabilities. In the last quarter, IonQ's revenues were impressive, driven by growing demand for its advanced quantum technologies. For the third quarter, revenues reached $39.9 million, a 222% increase year over year, and the company raised its 2025 sales guidance to $110 million, as announced in its earnings report. 

Can IonQ Truly Become the Next NVIDIA, or Is It Just Hype? 

IonQ's strong revenue growth, optimistic outlook, quantum milestones, and significant partnerships suggest that the pure-play quantum company could emerge as the “next NVIDIA” of the quantum era. IonQ is developing error-correcting software, satellite-based distribution and high-speed quantum networking, building an end-to-end ecosystem for quantum computing. 

However, it is premature to consider IonQ the “next NVIDIA." The company is not yet profitable. In the third quarter, IonQ reported a net loss of $1.1 billion, with adjusted earnings per share of -$0.17. In contrast, NVIDIA has consistently posted quarterly profits, fueled by the AI boom. In the fiscal fourth quarter of 2026, NVIDIA's net income surged to $31.91 billion from $19.31 billion a year earlier, driven by unprecedented demand for its Blackwell chips and cloud graphics processing units (read more: 3 Reasons to Buy NVIDIA After Its Massive 62% Revenue Surge). 

Buy, Hold or Sell IonQ Stock? Here's What Investors Need to Know 

Robust revenue growth, strategic acquisitions, and key quantum achievements may encourage existing shareholders to hold onto their IonQ stock. Nonetheless, for new investors, IonQ remains a highly speculative investment because the quantum computing industry is still in its early, developing stages. 

From a valuation standpoint, IonQ appears overvalued, and its stock could drop sharply if the broader market corrects. Its forward price-to-sales (P/S) ratio is a striking 150.36 compared to the Computer - Integrated Systems industry's 5.54. Therefore, it would be wise for new investors to avoid purchasing IonQ stock for now. 

Image Source: Zacks Investment Research

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research