This Quantum Computing Company Has Every Big Tech Firm Quietly Paying Attention

Quantum computing has the potential to be the next big technological breakthrough after artificial intelligence (AI). However, this is an emerging technology that is still many years from going mainstream and being commercially useful.

While many companies are going after this opportunity, there is one company the big tech companies are closely watching: IonQ (NYSE: IONQ).

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IonQ is an accuracy leader

There are a few reasons why IonQ is likely the quantum computing company that big tech is paying attention to right now. The first reason is that the company is pursuing a different technological roadmap than most players, and it's proving to be successful.

One of the biggest issues facing quantum computing today is accuracy; however, IonQ's trapped-ion technology has proven to be one of the most accurate, with the company achieving 99.99% 2-qubit fidelity (accuracy). While that sounds highly accurate, for computing, it is still error-prone, but it is at the level where the company can start using other error-correcting techniques to help develop a fault-tolerant quantum system.

Quantum computing faces accuracy issues because instead of using bits, which are in a fixed state of being a 1 or 0, quantum computing uses qubits, which are in a mathematical combination of both states simultaneously. This makes them very sensitive to external factors such as vibrations and temperature changes. IonQ's trapped-ion technology diverges from most competitors by starting with actual ytterbium atoms, which are inherently more stable than lab-created qubits.

The company then made a breakthrough following its acquisition of Oxford Ionics, enabling it to go from keeping its ion traps in place with lasers to controlling them with microwave signals built directly into its chips. This will also allow it to shrink the size of its systems.

In addition to hitting impressive fidelity milestones, another reason big tech is watching IonQ is that the company is looking to control the entire quantum ecosystem. It has made acquisitions in several areas, including quantum networking, sensing, and satellite transmission.

IonQ is even in the process of becoming vertically integrated, with the company in the midst of buying leading quantum foundry SkyWater Technology. This deal should allow the company to test prototype chips more quickly and eventually help it scale when it is time to commercialize its systems.

Is the stock a buy?

IonQ is perhaps the most interesting of the pure-play quantum computing stocks, given its accuracy edge. However, this race is far from over, and while its approach has been shown to be accurate, it lags behind competitive approaches in speed. As such, the stock remains speculative, and I'd only hold a small position.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ and SkyWater Technology. The Motley Fool has a disclosure policy.