‘The Quantum Play to Bet On,’ Says Top Investor About IONQ Stock

IonQ (NYSE:IONQ) stock has been on a rollercoaster lately, climbing to around $82 in mid-October before tumbling nearly 30% within days. The rally took off on October 13 after J.P. Morgan Chase announced a $10 billion investment program targeting industries it deems strategically important as part of its new Security and Resiliency Initiative – with quantum computing listed among the 27 focus areas.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

However, the initial euphoria quickly gave way to a sharp reversal. Many traders opted to lock in profits from the surge, and broader market jitters compounded the pullback as investors rotated out of high-risk tech amid renewed banking-sector stress and rising gold prices. By late October, IonQ’s momentum had largely evaporated, with shares sliding back toward the mid-$50s.

But just as sentiment seemed to settle, another catalyst reignited interest. Reports surfaced that the Trump administration was weighing the idea of taking ownership stakes in quantum computing companies, a potential game-changer that suggests deeper government involvement in the industry.

Though an official from the U.S. Department of Commerce denied that these talks were taking place, it wouldn’t be the first time that the Trump administration invested in American companies.

If the government does end up pursuing this strategy, top investor George Budwell believes that IONQ is the company that is best positioned to reap the benefits.

“Federal investment would amplify IonQ’s existing advantages in technology, cloud distribution, and commercial traction,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.

Budwell points out that government support will likely target those platforms that are closest to being deployment ready. Among the pure-play quantum companies, IONQ possesses both the best cloud availability and enterprise pathways, notes the investor.

“If the government takes a stake or procurements follow, customers and talent would gravitate toward the perceived winner,” emphasizes Budwell. “That dynamic historically compounds in frontier technology.”

Indeed, IonQ’s technological edge remains the foundation of Budwell’s thesis. The company recently achieved a record algorithmic performance score of #AQ 64 ahead of schedule, and its trapped-ion qubits deliver high fidelity without requiring extreme cryogenic conditions, an advantage that continues to set IonQ apart from its peers.

Moreover, Budwell urges investors to consider IonQ’s expanding commercial footprint. The company’s hardware is now accessible through Amazon Web Services, Microsoft Azure, and Google Cloud, enabling enterprises to experiment with quantum workloads without building their own infrastructure, a strategic position that could make IonQ the go-to partner if Washington’s interest turns into investment.

Of course, any investment is not without risk, and Budwell cautions that the path towards scaled quantum solutions remains far away. The government may also elect not to pursue these investments, making this a speculative play.

Still, if the U.S. government does follow through on its intent to back technologies closest to commercial readiness, IonQ may well find itself leading the charge in America’s quantum future.

“If you are taking one speculative position in quantum, make it IonQ,” sums up Budwell. (To watch George Budwell’s track record, click here)

That take seems to jive with Wall Street’s view, where 6 Buys and 2 Holds combine to give IONQ a Strong Buy consensus rating. (See IONQ stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Disclaimer & DisclosureReport an Issue