Why IONQ Is My Top Stock to Buy Right Now

IonQ (NYSE: IONQ) has positioned itself as a major pure-play quantum computing company, utilizing trapped-ion qubit technology. Here, charged atoms are confined using electromagnetic fields and then manipulated with precise laser pulses to enable highly accurate and stable quantum computations.

IonQ is seeing increased adoption of its quantum computing technology by governments, enterprises, and cloud computing providers. In the second quarter of fiscal 2025, revenue soared 81.8% year over year to $20.7 million. The company also ended the second quarter with $1.7 billion in cash and no debt. The strong financials and cash balance give it sufficient financial flexibility to invest in future growth initiatives without the need to raise capital.

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Backed by strong technology and improving financials, IonQ has the potential to tap into exceptional growth in the coming years. Here are a few other reasons why IonQ is one of my favorite stocks now.

Commercialization and technology

IonQ is focused on commercializing its quantum technology. The company's data center-compatible quantum computing system, Forte Enterprise, is now available on major cloud platforms. While Forte Enterprise is already working on some client workloads, it is also being worked on for even more use cases. These commercialization initiatives can translate into recurring revenue streams in the coming years.

IonQ is demonstrating its dominance in quantum technology with the 100-qubit Tempo system, currently in active development, which can perform quantum computations at an extremely low error rate. The company is also working on a 256-qubit system with Oxford Ionics to accelerate its progress toward fault-tolerant computing (a self-diagnosing and correcting system).

IonQ is also expanding into areas such as quantum networking and security through its acquisitions of Lightsync, ID Quantique, and Capella Space. Hence, besides quantum computation, the company will also become capable of securely transmitting quantum data to other systems. These capabilities enable the company to offer secure quantum computing capabilities at data centers.

Expanding customer base

IonQ has entered into multiple quantum computing agreements with government and commercial partners, resulting in high multiyear revenue visibility. These government deals include a $75.6 million contract with the U.S. Air Force Research Lab, a $22 million U.S. project with EPB, a national partnership with Japan's AIST G-QuAT, and selection by South Korea's KISTI as a primary quantum computer partner to build the National Quantum Center of Excellence. Together, the company has entered into government deals worth over $100 million.

On the commercial front, IonQ has also collaborated with AstraZeneca, Amazon's AWS, and Nvidia, resulting in 20 times faster performance in a particular drug discovery workflow.

Valuation

IonQ stock currently trades at 399.17 times sales, which is admittedly a very expensive valuation. However, the stock is being valued for its explosive future growth potential and its focus on commercializing quantum technology. While execution risks are high, IonQ's share prices can continue to grow even at elevated valuation levels.

Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy.