Is IonQ a Millionaire-Maker Stock?
The expected evolution of quantum computing gives the company massive upside potential.
IonQ, a quantum computing firm, is generating interest due to its advanced technology and upcoming quantum computer model launch. A successful launch could boost the stock price, but how much potential does it hold for investors to become millionaires? To determine if IonQ could achieve a 100x return, it must increase from a $10,000 investment to $1 million.
Quantum computing shows promise, with IonQ leading the pack using trapped ion qubits, which offer better accuracy than rival superconducting qubits. McKinsey predicts the quantum computing industry could reach $72 billion annually by 2035, assuming IonQ captures 100% of this market. With a 50% profit margin similar to Nvidia's, IonQ could generate $36 billion in annual profits.
Applying a 30x earnings multiple, this results in a $1.08 trillion company. Currently, IonQ's market cap stands at $11.7 billion, implying a potential 90x return under this optimistic scenario. While IonQ has significant potential, achieving a 100x return within a decade appears unlikely. Nevertheless, the company could still deliver market-beating returns if its quantum computing technology proves successful, potentially aiding in building a million-dollar portfolio over the long term.
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- Is IonQ a Millionaire-Maker Stock? nasdaq.com