The quantum computing sector is a great place to find stocks that have the potential to deliver huge returns. However, if one of these companies comes out with a negative test result or loses a major customer, the investment thesis for it can collapse overnight, causing the stock price to drop.
My favorite stock in this area is IonQ (NYSE: IONQ). The company has pioneered the accuracy of quantum computing — and that’s key, since error reduction and error correction are two of the main problems that need to be solved before the technology can be widely used. Analyst John McPeake of Rosenblatt Securities has a $100 price target on the stock, which means he thinks it could triple from here next year.
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So, should investors buy the stock now?
While McPeake is the most bullish of the analysts covering IonQ, the stock’s consensus is also positive. The average purchase price is $65, which is still double today’s price of about $32.50. In fact, the lowest one-year price is $35 per share, indicating that IonQ’s stock may be undervalued. But it is now down about 66% from a high of $84 reached in October.
If you look at how the company works, it’s clear that IonQ solutions are starting to gain traction. In the fourth quarter, it received revenue of $62 million – up 429% year over year. That comes from a combination of research contracts and early system sales, but it has shown that demand for quantum computing technology is rising rapidly. In total, in 2025, the company received an income of 130 million dollars. For 2026, that number is expected to rise to 235 million dollars.
However, there is no guarantee of success for the company in the long term, and trying to value it using traditional metrics such as the price-to-sales ratio does not work well because it does not take into account the market opportunity that IonQ can benefit from if its products become the main winners in the area. Instead, I think investors are better off looking at IonQ as a biotech stock.
Its technology may or may not work, but all indications are that IonQ’s early experiments are going well. As a result, it is sold at a higher price than some of its competitors. There is still a lot of room for improvement if it can bring a marketable product to market, but there is still a chance that another company’s products will surpass it or its latest attempts will fail. Successful investors avoid investing in early stage biotech companies because of their high-risk nature. But they may want to get a smaller portfolio and increase their exposure as such companies report more success.
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