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Unexpectedly, IonQ Stock Is Now an EV-Battery Investment

InvestorPlace - Wed Mar 16, 2022
A concept image of a processor representing quantum computing.Source: Amin Van /

What is quantum computing, anyway? Unlike digital computing, quantum computing uses the properties of subatomic particles to perform simulations and calculations which would not otherwise be practical.

It’s fine if you don’t understand all of the ins and outs of quantum computing. For the time being, we can just emphasize that quantum computing’s total addressable market is projected to grow to $65 billion by 2030.

Moreover, IonQ is an ambitious competitor in this high-conviction market. As we’ll discover, the company continues to push the envelope in quantum-computing technology, and is even delving into the electric vehicle (EV) space in 2022.

A Closer Look at IONQ Stock

You might recall that many small businesses went public in 2021 through reverse mergers with special purpose acquisition companies, or SPACs. Prior to the announcement of a reverse merger, it’s not unusual for a SPAC stock to trade near $10.

After reverse-merging with dMY Technology Group III, IonQ offered its shares for public trading on the New York Stock Exchange on Oct. 1, 2021. Not surprisingly, the shares zoomed much higher than $10, as this was a period of rampant SPAC-stock speculation.

The stock peaked at $35.90 on Nov. 17, and that’s when the hype phases ended. Soon, the investors would learn a harsh lesson about what can happen when they buy during a mania phase.

Here’s what’s interesting, though. In January 2022, IONQ stock bounced almost exactly off of $10. Could this be a major support level?

Only time will tell, but anywhere near $10 seems like a good place to take a starter position in the stock. Whatever you do, though, it might be wise to consider taking profits in the $30s. After all, greed is bad for your financial health.

A Quantum Leap Forward

Being an innovator means that a company’s can’t afford to rest on its past accomplishments. There’s always competition out there, so great businesses must constantly improve and innovate.

Thankfully, IonQ is still making strides in the area of quantum computing. Indeed, the company recently extended its lead in having the industry’s most powerful quantum computer.

Known as the IonQ Aria, this computer achieved a record 20 algorithmic qubits. For more geek-speak, I’ll let the company do the explaining:

“IonQ Aria is able to successfully execute quantum circuits containing more than 550 gates, as compared to the superconducting systems that can only execute circuits containing dozens. This enables IonQ to greatly exceed peers in practical uses of quantum algorithms.”

As of Feb. 23, the IonQ Aria was only available for customers in private beta. Still, this could represent a watershed moment for the company, and for quantum computing in general.

Solving Complex Problems

Not only does IonQ have what might be the industry’s most powerful quantum computer, but the company also now has a partnership in a red-hot industry.

Specifically, IonQ is working with Hyundai Motor (OTCMKTS:HYMTF) to develop algorithms to “study lithium compounds and their chemical reactions involved in battery chemistry.”

Through this partnership, IonQ will leverage its expertise with quantum computers while Hyundai will provide its knowledge of lithium batteries. Together, they’re seeking to build the “most advanced battery chemistry model yet,” based (of course) on quantum computing.

Thus, IONQ stock is now an indirect investment in the future of the EV-battery revolution. So, keep this in mind before taking a position in the stock.

For his part, IonQ President and CEO Peter Chapman is understandably enthusiastic about this new joint venture.

“We at IonQ believe in our mission to solve the world’s most complex problems through the ongoing development of our quantum computers, and we see global climate change as one such problem that we can help to tackle with quantum chemistry solutions,” Chapman commented.

The Bottom Line

The good news is, you don’t have to be a quantum-computing expert to invest in this fascinating niche market.

IONQ stock is fairly inexpensive, and may have support at $10. Just be aware that’s there’s risk involved when you invest in a cutting-edge technology.

Still, the potential for upside is substantial here. Between the quantum-computing market and the EV-battery industry, the sky truly is the limit for future-thinking investors.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.