Could Buying IonQ Today Set You Up for Life?

If you're looking for a stock that has the potential to set you up for life, you're going to want to find one that has some potential game-changing technology. With quantum computing potentially being the next big technological breakthrough after artificial intelligence (AI), this is one of the top areas to look.

While quantum computing is still likely many years away from becoming a commercially viable business, the technology's potential is enormous. Right now, the biggest obstacle facing quantum computing is that the technology is still very error-prone. This is because instead of using traditional computing bits, which can be a 0 or 1, it uses qubits, which have the potential to be both through what is known as superposition.

However, while superposition is what makes quantum computing so powerful, it is also what makes it error-prone because by not being in a fixed state, qubits are more fragile and vulnerable to being impacted by outside forces such as vibrations or temperature changes.

IonQ: A quantum leader

One of the companies furthest along in creating a fault-tolerant quantum computer is IonQ (NYSE: IONQ). It has taken a different approach than most competitors, opting to use a trapped-ion approach.

Because this technique employs actual atoms, which by nature are identical, rather than lab-made qubits, its qubits are more stable. Meanwhile, through the acquisition of Oxford Ionics, IonQ has been able to move away from lasers holding its qubits in place in favor of integrating microwave electronics into its chips, making them even more stable. It also uses a partial error-correcting technique called Clifford Noise Reduction to help reduce errors.

The result is that it has been able to attain 99.99% two-gate fidelity, which is one of the highest accuracy ratings achieved. This makes IonQ one of the best-positioned companies in the quantum computing space right now. However, that is not the only intriguing aspect about IonQ. The company is also trying to vertically integrate and control the entire quantum ecosystem.

IonQ has made many important acquisitions over the years. The aforementioned Oxford Ionics was a big one, helping it improve its accuracy, while its technology will also help shrink its machines, which is also another important commercialization consideration. It's also made deals to acquire networking technology, satellite-based distribution, and quantum sensing technology.

Image source: Getty Images.

However, its pending acquisition of SkyWater Technology, a semiconductor foundry specializing in quantum computing, may be one of its most important. By owning SkyWater, IonQ will become vertically integrated, giving it intimate knowledge of advanced die and fabrication technology that it can use to further its chip designs. That's a big advantage.

If IonQ can eventually create a fault-tolerant quantum computer and become a leader in the space, an investment in the stock could help set you up for life. However, this is a high-risk, high-reward stock, so invest accordingly.

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.