Riding a wave of investor enthusiasm for the technology, quantum computing startup IonQ (NYSE:IONQ) has risen by almost 60 percent in 2025.
With quantum computing emerging as one of the most promising up-and-coming technologies of the next several years, is IONQ the best quantum stock to buy now and hold for long-term returns?
Does IonQ Have Unique Advantages in Quantum?
One of the most appealing aspects of IonQ is the technological advantages it has gained by focusing on trapped-ion quantum computing. This technology allows IonQ to easily configure linear chains of ions acting as qubits without adding new hardware.
So far, IonQ has been able to run quantum algorithms on chains up to 35 ions in length. Trapped-ion technology also offers advantages in fidelity, which is often a challenge for quantum computers.
IonQ has also been working on converting quantum frequencies to standard telecom wavelengths, potentially giving it a large edge in quantum communication. This development may also soon make it possible to connect quantum computers with ordinary fiber optic connections.
Of particular note is IonQ’s full-stack approach to quantum computing. In addition to developing cutting-edge quantum hardware, IonQ is also focused on creating quantum software and, perhaps most crucially, tools that allow quantum computers to interface effectively with existing classical computing infrastructure. This approach may give IonQ an edge when it comes to commercializing the technology. By working toward full-stack offerings, IonQ could win out over businesses that are focused more exclusively on hardware development.
Light on Revenues But Bright Spots Ahead
Though it’s still quite a young business, IonQ has delivered some fairly impressive results recently. Its Q3 earnings report detailed 222 percent year-over-year revenue growth to $39.9 million, more than 35 percent above the top end of its guidance range. For the full year, management has raised its revenue guidance to as much as $110 million.
During Q3, IonQ also entered into several new projects that could prove lucrative. Among these were a memorandum of understanding with the Department of Energy aimed at exploring the role of space-based quantum technology and a partnership with an unnamed automotive manufacturer to demonstrate chemistry simulations on its quantum hardware.
Despite these wins, it’s important to understand that IonQ is still losing money at a rapid rate. The net loss in Q3 was $1.1 billion, though IonQ still has an extremely strong cash position to support itself. Even so, profitability could still be several years away. IonQ’s management stated early this year that the business expected to be profitable by 2030, at which point it expects annual revenues to total about $1 billion.
Is $20 Billion Market Cap Excessive?
At $19.3 billion, IonQ’s market cap is extremely high for a startup with modest revenues and no positive earnings. Shares of IONQ trade at about 169 times trailing 12-month revenues and 8.5 times book value. Despite these concerning valuation metrics, analysts are still expecting almost 33 percent worth of additional upside from IONQ, with shares projected to rise from their current price of $54.44 to a consensus target of $72.35.
It’s also worth taking into account that IonQ is part of a group of quantum startups that are defined by high valuations. Comparable businesses include Rigetti Computing (NASDAQ:RGTI) and D-Wave Quantum (NYSE:QBTS), which are priced at 1,084 and 341 times their trailing 12-month revenues, respectively.
These two stocks boast similar expected upside, with analysts projecting over 30 percent gains in the next 12 months. Given that it’s priced at a considerably lower multiple to sales while potentially offering similar upside, IONQ’s valuation actually looks fairly reasonable when compared to its closest peers.
Largest Risk for IONQ
The largest risk for IonQ and comparable quantum computing startups is the uncertain timeline quantum computing faces for commercialization. Even with impressive strides made in 2025, analysts offer the varied range of $28 billion to $72 billion in worldwide quantum computing revenue by 2035. This extremely wide spread on such a long timeline, combined with the high price multiples that define the industry, could easily leave quantum stocks like IONQ open to severe overvaluation.
Another risk that’s closely associated with quantum computing’s long timeline is the strong possibility of substantial share dilution as IonQ builds toward eventual profitability.
In Q3 alone, the business completed a $2 billion equity offering. With capital needs likely to grow as IonQ ramps up, shareholders who buy and wait as the business expands could see their current ownership stakes eroded in gradual rounds of future dilution.
Finally, IonQ and other startups face the risk of larger and more-established tech majors winning the quantum race. Alphabet has long been a leading contender among the Magnificent Seven, having developed its own cutting-edge quantum processors. NVIDIA and Amazon are also in the running, with Amazon working on its own hardware and software and NVIDIA acting as a pick-and-shovel play on the classical computing hardware needed to make quantum computers viable.
So, Is IonQ The Best Quantum Stock to Buy?
With large, established tech majors investing in quantum computing, IonQ may not be the single best stock to buy as a long-term play on the technology. Alphabet likely takes that position, as its custom quantum hardware could easily find its place in the broader business of cloud computing and AI.
Indeed, Google has already introduced its Quantum AI project, meant to use the two technologies in tandem to solve problems that are too complex to be approached with classical computing. Existing tech stocks also have the advantage of having massive, profitable businesses already behind them, mitigating the high risks that come with investing in pre-profit startups.
What might be more accurate to say, however, is that IonQ could be one of the better quantum startups to invest in at the moment. With substantial revenue growth already occurring and a less extreme valuation than some of its closest peers, IONQ may represent a good balance between the high risks of the quantum computing world and the returns that early leaders in the field could deliver. Highly risk-tolerant investors looking for outsized gains from quantum computing, therefore, may find IonQ attractive for both its technological advantages and its impressive early performance.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.