COLLEGE PARK, Md. - IonQ, a company traded on the New York Stock Exchange under the ticker NYSE:IONQ, has announced a significant advancement in quantum computing technology with the successful demonstration of remote ion-ion entanglement between two qubits in separate ion traps. This development, part of a series of milestones aimed at scaling quantum systems, was reported in September as a key step toward the implementation of photonic interconnects, which are essential for quantum networking and a central aspect of IonQ's scaling strategy.
The company's research and development team accomplished this feat by entangling two trapped ion qubits using entangled photons and routing them to a single detection hub, establishing a quantum communication link. This is a crucial step toward achieving a scalable quantum system.
IonQ's President & CEO, Peter Chapman, stated that their progress on photonic interconnects is ensuring that customers will have access to larger quantum systems capable of solving complex problems. Dr. Björn Flatt, Head of Emerging Technologies at IonQ, emphasized the company's commitment to integrating photonic interconnects into commercially available quantum computers.
IonQ's approach to quantum computing involves scaling qubits within a single ion trap and networking multiple traps to achieve what the company refers to as a "commercial quantum advantage." The company's systems are trusted by governments, global business enterprises, and academic institutions to provide fast, accurate, and accessible quantum computing solutions.
The company's latest quantum computer, IonQ Forte, boasts 36 algorithmic qubits and is available through major cloud providers. IonQ has been recognized for its innovative technology and rapid growth, as evidenced by its inclusion in Fast Company's 2023 Next Big Things in Tech List and Deloitte's 2023 Technology Fast 500™ List.
The information in this article is based on a press release statement from IonQ. It should be noted that the company's forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. IonQ has not provided specific dates for the full implementation of photonic interconnects or the realization of commercial quantum advantage.
In other recent news, IonQ has made significant strides in the quantum computing sector, expanding its partnership with the University of Maryland (UMD) to bolster quantum computing research and development at the National Quantum (NASDAQ:QMCO) Lab at Maryland (QLab). This collaboration aims to provide advanced quantum computing resources to the UMD community and its partners, further establishing Maryland as a key player in the quantum computing industry.
Despite a net loss in Q2 2024, IonQ exceeded revenue expectations, reporting $11.4 million and booking $9 million in sales contracts. The company also raised its full-year revenue forecast, suggesting a positive outlook for the remainder of the fiscal year. Additionally, IonQ secured a $40 million contract from ARLIS, anticipating an additional $12 million in bookings before the end of 2024.
In terms of technical advancements, IonQ revealed a prototype Barium system that achieved 99.9% fidelity in two-qubit gates, marking a significant milestone in quantum computing performance. Needham, despite reducing its price target for IonQ to $13 from $18, maintains a Buy rating on the company. These recent developments underscore IonQ's ongoing commitment to innovation and growth in the quantum computing sector.
InvestingPro Insights
IonQ's recent technological breakthrough in quantum computing aligns with its strong financial performance and market position. According to InvestingPro data, IonQ has demonstrated impressive revenue growth, with a 90.62% increase over the last twelve months as of Q2 2024, and an even more striking 106.36% quarterly revenue growth in Q2 2024. This rapid expansion reflects the increasing demand for IonQ's quantum computing solutions and validates the company's strategic focus on advancing its technology.
InvestingPro Tips highlight that analysts anticipate continued sales growth for IonQ in the current year, suggesting that the market expects the company's innovations, such as the remote ion-ion entanglement breakthrough, to translate into commercial success. Additionally, the fact that IonQ holds more cash than debt on its balance sheet indicates a strong financial position to support ongoing research and development efforts.
Despite the company's technological advancements and revenue growth, it's worth noting that IonQ is not yet profitable, as indicated by another InvestingPro Tip. This is not uncommon for high-growth technology companies investing heavily in cutting-edge research. The company's significant gross profit margin of 54.76% for the last twelve months ending Q2 2024 suggests that as IonQ scales its operations, there is potential for profitability in the future.
Investors interested in delving deeper into IonQ's financial health and growth prospects can access 11 additional InvestingPro Tips, providing a more comprehensive analysis of the company's market position and potential.
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