IonQ has been on fire this month. Bank of America says buy the quantum computing stock - CNBC

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuBank of America says IonQ 's recent acquisitions could help it build more powerful quantum computers and bring them to market sooner. The bank initiated coverage on IonQ, the largest public pure-play quantum company by revenue, with a buy rating and $60 price objective Monday. Research analyst Vivek Arya's case rests on IonQ using deals to "accelerate its quantum-compute roadmap" as it expands into quantum networking, security, sensing, space and foundry services. The stock is up 16% over the past month but has underperformed the broader market year-to-date. IonQ has only gained 1.3% in 2026 compared to the S & P 500's 13% gain. IONQ YTD mountain IonQ stock year to date. IonQ acquired semiconductor foundry Sky Water Technology in July. The deal provides IonQ with control over chip development and manufacturing to support its Superion systems, a full-scale quantum computing platform it is developing. Its January acquisition of Seed Innovations, an AI and software development provider, will help it manage and scale complex quantum workloads. Together, the deals should help it speed up the launch of its next-generation platform "supported by its semiconductor-enabled path to scaling qubit count, broad customer engagement and exposure across quantum computing, communications and sensing," Bank of America said. The broad-based exposure to a range of quantum applications also will help the company expand its revenue base. Quantum computers are designed to tackle problems that conventional computers cannot, but the qubits the technology relies on for certain calculations remain error-prone. That's why Bank of America believes commercial adoption remains early and anticipates more useful systems by 2030. IonQ is aiming to launch its Superion 256 in the second quarter of 2027. It will be the first to integrate electronic qubit control, "a significant architecture shift that could support substantial logical-qubit scaling," Arya said. He anticipates that the stock could benefit as the company hits engineering milestones in the second half of this year. Bank of America expects sales will grow at a 69% compound annual growth rate from fiscal 2026 to fiscal 2030. While IonQ has "multiple ways to win," investors are paying for growth that is not yet realized. Any delays in delivering machines or in commercial adoption could put that forecast, and its price target, at risk.'Take or pay': AI companies are taking a risky page from the energy sector's playbookTobias Burns25 min agoWhich 10-year yield level will really start to hit stocks? Here's what history suggestsSarah Min2 hours agoHomebuilders just surged on a new UK government scheme. Analysts name the stocks that could benefit mostJenni Reid5 hours agoRead More