Zinger Key Points
- After initially dropping nearly 10%, IonQ shares bounced back and are now up 3% following Gates’ optimistic quantum computing comments.
- Nvidia and Meta CEOs cast doubt on near-term quantum advancements, triggering a sector-wide selloff.
IonQ Inc. IONQ shares rebounded Monday after initially trading lower alongside other quantum computing stocks. The stock, which was down nearly 10% earlier in the session, bounced back following an article detailing Bill Gates' comments on the timeline for useful quantum computing.
What To Know: The sector potentially came under pressure after Nvidia CEO Jensen Huang suggested at CES 2025 last month that practical quantum computing could still be 15 to 30 years away. His remarks triggered a selloff, with some quantum stocks falling more than 40%. Meta CEO Mark Zuckerberg echoed similar skepticism in a podcast, calling quantum computing “still quite a ways off from being a truly practical paradigm.”
Gates spoke on Yahoo Finance's Opening Bid podcast, he said there’s a possibility that quantum breakthroughs could happen within three to five years, allowing systems to reach enough logical qubits to solve difficult problems. He acknowledged that the field is uncertain but pointed out that Microsoft, where he remains involved, is actively working on quantum computing and expects to release what it calls "the world's most powerful quantum machine" later this year.
IonQ also announced a $21.1 million research contract with the U.S. Air Force Research Lab to develop quantum network infrastructure, furthering its previous $54.5 million agreement with the military. The stock initially dropped despite the news but reversed course after Gates' comments gained attention. Gates, through his Breakthrough Energy venture, has previously invested in IonQ.
While the broader quantum sector remains volatile, IonQ is holding up better than its peers. D-Wave Quantum (QBTS) and Rigetti Computing (RGTI), two other heavily traded quantum names, are still down sharply this year. Rigetti, despite a massive run-up in 2024, remains under pressure after its CEO warned that significant commercial sales are still years away.
IONQ Price Action: IonQ shares were up 4.65% at $41.32 at the time of writing, according to Benzinga Pro.
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