$500 Invested in IonQ Now Could 10x if Quantum AI Hits by 2029

The next big technology in the tech sector is undoubtedly quantum computing. Quantum computing has been in development for a long time, but it's starting to inch closer to reality. While the arrival date time was 2030, several leaders in the industry have accelerated that timeline to 2029. That is less than 1,000 days away, so investors can't be sleeping on this technology, as it gives them the chance to invest in some companies that have greater upside than some of the most popular AI investments.

One of my favorites in this segment is IonQ (NYSE: IONQ). IonQ is a top quantum computing company and one of the leaders among the quantum computing players. It could easily rise 10-fold by 2029 if it becomes a leader, which makes it a fantastic long-shot investment to make today.

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IonQ is in a great position

One advantage IonQ has over some of its peers is that it's doing quantum computing differently from everyone else. Instead of using a superconducting approach to quantum computing, it's using trapped-ion technology, which provides superior accuracy results at the trade-off of processing speed. Considering that quantum computing accuracy is the primary hurdle preventing widespread quantum computing adoption, this is a major deal. In fact, IonQ holds the world record for two-qubit gate fidelity, a common measure of accuracy in the quantum computing realm.

IonQ's next biggest computer is slated for release sometime in 2027, and will feature 256 qubits -- making it one of the largest and most advanced quantum computers on the market. This could lead to significant growth from early adopters of the technology and kick-start IonQ's run-up in preparation for wide-scale quantum computing deployment. One of the primary places quantum computing could find usage is in artificial intelligence (AI). If the AI hyperscalers get hold of IonQ's technology to accelerate their AI capabilities, the sky could be the limit for IonQ's stock.

But how will it 10x? It's pretty simple.

IonQ needs to gain popularity with the market

IonQ currently has a market value of $16.2 billion. A 10-fold increase requires IonQ's market cap to rise to $162 billion over the next few years. One stock that's a popular investment in the AI sector that saw intense investor interest as AI adoption accelerated was Palantir. Palantir's valuation peaked at nearly 140 times sales in 2024, and still trades for 80 times sales now.

PLTR PS Ratio data by YCharts

If IonQ has a similar level of interest, I don't think it's unreasonable for it to trade at 100 times sales if quantum computing adoption occurs rapidly. That would require IonQ to generate just $1.68 billion in sales at a valuation of 100 times sales. Next year, Wall Street analysts on average expect IonQ to generate $811 million in revenue. That means it only needs to double its revenue from 2027 to 2029.

If IonQ is successful in its quantum computing endeavors and it becomes one of Wall Street's darling stock picks, I do not doubt that it will be one of the best-performing stocks during the next few years. Although there is no guarantee that it will be successful, it has the technology that places it near the front of the leaderboard and has several partners within the industry that have a vested interest in IonQ succeeding.

I think it's a fantastic investment, but there is a lot of risk involved. As a result, I wouldn't devote more than 1% of my total portfolio to the stock. That way, if it goes bust and falls to $0, I won't be as affected very much. However, if a 1% position rises 10-fold, it will still provide meaningful returns that can seriously boost overall portfolio returns.

Keithen Drury has positions in IonQ. The Motley Fool has positions in and recommends IonQ and Palantir Technologies. The Motley Fool has a disclosure policy.