Where Will IonQ Stock Be in 5 Years?

IonQ (NYSE: IONQ), a developer of quantum computers and cloud services, went public through a merger with a special purpose acquisition company (SPAC) nearly five years ago. Its stock opened at $10.60 on its first day of trading, but it now trades at around $40 per share.

Unlike other SPAC-backed start-ups that fizzled out, IonQ impressed the market with its competitive advantages and rapid growth. Will its stock keep rising over the next five years?

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What happened to IonQ over the past five years?

Quantum computers can process certain tasks much faster than classical computers. However, they're bigger, pricier, consume more power, and output more errors. For now, they're mainly used in niche government and research projects. But as these systems become smaller, more scalable, and more accurate, they could be used for more mainstream computing applications.

Most quantum systems accelerate electrons through loops to achieve a quantum state, but they're large and expensive to maintain because they require cryogenic refrigeration. IonQ addresses those issues by trapping and manipulating individual ions with tiny lasers to achieve a quantum state. These systems are smaller and more accurate than electron-powered systems, and they don't require cryogenic cooling.

IonQ has already launched four of those quantum systems (Harmony, Aria, Forte, and Forte Enterprise), and it plans to launch its fifth system (Tempo) in the near future. It sells and leases some of those systems to research institutions, but it generates most of its revenue from its cloud-based quantum computing service, which provides remote access to its systems.

From 2021 to 2025, IonQ's revenue soared from $2 million to $130 million. By 2028, analysts expect its revenue to reach $1.06 billion as its quantum computing power increases and it gains more government and enterprise customers. It expects its processing power to exceed 100 qubits (quantum bits) with the launch of Tempo and surpass 256 qubits in its future systems.

Where will IonQ's stock be in five years?

IonQ's growth trajectory is impressive. But with a market cap of $15.9 billion, it's already valued at 15 times its projected 2028 sales. It's also expected to remain unprofitable for the foreseeable future, and rising rates will increase its borrowing costs. On the bright side, it still had $2.0 billion in cash, cash equivalents, and investments (including its recent acquisition of SkyWater) with a manageable debt-to-equity ratio of 1.03 at the end of the second quarter of 2026.

If IonQ matches analysts' estimates through 2028, grows its revenue at a 30% CAGR through 2031, and trades at an aggressive 30 times its current year's sales by the final year, its stock could more than quadruple over the next five years. However, it could experience significant volatility before it achieves those multibagger gains.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.