Prediction: IonQ Could 10x by 2035

IonQ (IONQ -8.94%) is a prominent player in the quantum computing industry, though it remains a relatively small company with a market cap of $12 billion. To achieve a 10-fold increase in value by 2035, IonQ would need to reach a market cap of $120 billion, a figure that is still modest compared to today's standards. However, if quantum computing gains significant traction, IonQ could potentially attain this valuation.

The company distinguishes itself through its vertically integrated approach, utilizing trapped ion technology, which boasts superior accuracy over the more commonplace superconducting approach. This technology has already set a world record in two-qubit gate fidelity, a critical metric for quantum computing accuracy. IonQ's primary product is expected to be a 256-qubit quantum computer, available in early 2027, which will make it one of the largest and most capable systems on the market.

This device has already garnered several orders, potentially propelling IonQ to the forefront of the quantum computing race. In addition to its core product, IonQ has expanded its capabilities by acquiring SkyWater, granting it access to fabrication facilities for quantum chip development, and Elisity, a cybersecurity platform. This strategic move positions IonQ to capitalize on the emerging risks and opportunities presented by quantum computing.

While the company remains unprofitable, analysts project it to generate around $800 million in revenue next year. As quantum computing is projected to become commercially viable by 2029 and grow to an estimated $72 billion annually by 2035, IonQ could potentially reach the $12 billion in annual revenue needed to achieve its $120 billion valuation target.

However, the success of IonQ and the quantum computing industry remains uncertain, making it a high-risk, high-reward investment. Despite the risks, IonQ's strong game plan and execution capabilities make it an intriguing prospect for long-term investors willing to accept a relatively small position to manage potential downside.