Quantum computing company, IonQ, Inc. (NYSE: IONQ), signed onto a new project with the United States Air Force Research Lab (AFRL) to work on quantum computing projects.
The deal, originally announced on Monday, is worth USD$21.1 million.
IonQ has met another significant milestone by collaborating with AFRL to install quantum network infrastructure at the Innovare Advancement Center in Rome, New York. Quantum networks, which enable multiple nodes to communicate using entangled qubits, provide secure communications, precise timing synchronization, and a foundation for distributed quantum computing, positioning them as crucial for secure infrastructure.
As part of this effort, IonQ will develop a network with high-performing access points to enhance the interoperability of quantum computers and networked devices. The company will also deliver networking hardware to increase compatibility with existing telecommunication infrastructure. Additionally, IonQ will work with with AFRL to create groundbreaking capabilities for establishing free-space optical links from ground stations to uncrewed aerial systems (UASs).
The new 2024 Q4 project with AFRL builds on recent contracts, including the USD$54.5 million agreement signed in September 2024 with AFRL and the contract with the Applied Research Laboratory for Intelligence and Security (ARLIS) to design the first networked system for blind quantum computing, along with other significant contracts.
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Quantum computing is a hot topic in the tech world
IonQ has reinforced this momentum with its Q3 2024 financial results, doubling its yearly revenue for the quarter.
Despite not being profitable, IonQ has shown impressive revenue growth. The company’s financial results have consistently beaten expectations, with a year-over-year revenue increase of 98.02 per cent in 2023, although losses widened.
This growth narrative, combined with IonQ’s market positioning as one of the few pure-play quantum computing companies, has attracted speculative capital, especially in a market environment where investors are looking for high-growth tech stocks. Analyst upgrades, like the one from Craig-Hallum raising the price target from USD$22.00 to USD$45.00, have further moved the stock upwards.
Quantum technology has become a hot topic in the tech world. Major corporations and governments have invested heavily in what is often hailed as the next frontier in computing technology.
The excitement around IonQ’s potential to lead this new wave of computing has fuelled investor enthusiasm. Posts found on social media and various web analyses suggest that the recent interest in quantum computing, particularly after comments from industry leaders like Nvidia’s CEO Jensen Huang, who spoke about the industry’s future, has indirectly benefited IonQ’s stock price.
Even though Huang’s comments were somewhat tempered regarding the immediate commercial viability of quantum computing, the sector’s long-term potential still seems to drive investor interest.
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