What Happened?
Shares of quantum computing company IonQ (NYSE: IONQ) jumped 5.7% in the morning session after the stock's positive momentum continued as the company announced a major partnership with the U.S. Department of Energy and revealed a deal to acquire quantum sensing firm Vector Atomic.
IonQ signed a memorandum of understanding with the department to help advance quantum technologies in space, which called for an orbital demonstration of quantum-secure communications. This news arrived alongside the announcement of an agreement to acquire Vector Atomic, a move that accelerated IonQ's entry into the quantum sensing market and strengthened its technology platform. The acquisition brought with it over $200 million in existing government contracts for Vector Atomic. These developments occurred as the broader quantum computing sector rallied, with many investors seeing IonQ as a leader driving the gains. Wall Street reacted positively, with analysts at Benchmark raising their price target on the stock to $75 from $55, maintaining a Buy rating.
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What Is The Market Telling Us
IonQ’s shares are extremely volatile and have had 108 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 4.6% on the news that it extended its positive momentum as the company secured UK regulatory approval for its acquisition of Oxford Ionics, fueling continued positive momentum and prompting positive analyst actions.
The stock continued a rally that began after the quantum computing company announced it had received the green light from the UK's Investment Security Unit for its planned $1 billion acquisition of Oxford Ionics. With all regulatory conditions satisfied, IonQ expects the transaction to close in the near term. This strategic move aims to expand the company's research expertise in the quantum computing sector.
Adding to the bullish sentiment, analysts responded positively following the company's 2025 Analyst Day. Needham maintained a Buy rating and raised its price target on IonQ from $60 to $80, citing the company's aggressive technology roadmap. Cantor Fitzgerald also revised its price target upward, reflecting growing confidence in the company's prospects.
IonQ is up 60.7% since the beginning of the year, and at $69.28 per share, has set a new 52-week high. Investors who bought $1,000 worth of IonQ’s shares at the IPO in January 2021 would now be looking at an investment worth $6,413.
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