IonQ gets initated at Buy as BofA backs its chips-over-lasers approach

Yahoo Finance ·

Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. IonQ (NYSE:IONQ) just picked up a new fan on Wall Street. Bank of America has started coverage with a Buy rating and a $60 price target, betting that the company's semiconductor-based approach gives it a real shot at scaling up its qubit count. The bank calls IonQ the largest public pure-play quantum company by revenue, and its analysts think the industry is nearing a commercial turning point. Better fidelity, stronger error correction and bigger systems should produce more useful machines by 2030, they said. Bank of America values IonQ's businesses separately using 2030 enterprise value to sales. Quantum Hardware & Services, which it sees generating $2.5 billion in fiscal 2030 revenue, gets a 7.0x multiple. Foundry, projected at $1.2 billion, gets 2.0x. Together, that works out to a blended 5.4x. IonQ's next-generation Superion 256 system, with 256 physical and 12 logical qubits, will be the first to use electronic qubit control on silicon. By pairing Oxford Ionics' technology with SkyWater fabrication, it swaps the laser-based control that grows more complex as qubit counts rise for electronics built on silicon. IonQ is aiming to launch Superion in the second quarter of 2027, and the bank expects it to deliver the company's first fully error-corrected logical qubits in a commercial system. Bank of America pointed out that IonQ has used acquisitions to speed up its quantum computing roadmap while branching out into networking, security, sensing, space and foundry services. That gives the company more to sell today, along with enterprise and sovereign customer relationships and extra routes to commercialization while fault-tolerant computing is still being developed. The newly closed SkyWater deal brings an operating merchant-foundry business into the fold, along with process development, wafer fabrication and advanced packaging that IonQ can now handle in-house for future Superion systems, according to the bank. Shares of IonQ gained over 4% just after the open on Monday.

DYAX Investor Sentiment

Bullish (Long) 71% · Bearish (Short) 29%

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