IonQ (IONQ) stock climbed 5% during Wednesday’s session and added another 7% in after-hours trading after the quantum computing company announced it had signed a memorandum of understanding (MoU) with the U.S. Department of Energy (DoE). The deal is part of the DoE’s Quantum in Space program, which looks at how quantum tech can be used for secure space systems.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Under the deal, IonQ will design and carry out an orbital test of quantum-secure links using its satellite platform. The goal is to show how data can move from ground to orbit and back while staying safe from outside attacks.
Expands Role in Quantum Space Applications
The MoU also outlines a broader collaboration between IonQ and the DoE on additional quantum applications in space. These include new ways to handle navigation, time sync, quantum networks, and sensing. Each of these areas could be useful for both national security and commercial markets.
IonQ Chairman and CEO Niccolò de Masi called the agreement a key step in proving the real-world potential of quantum computing and networking. He said the deal shows the growing role of quantum in areas like cybersecurity and space.
Vector Atomic Deal Adds to Momentum
On the same day, IonQ also said it will acquire Vector Atomic, a U.S.-based firm that builds quantum sensing technology. The $250 million all-stock deal is expected to speed up its entry into quantum sensing and strengthen its full-stack quantum platform.
Both announcements come as competition in quantum is growing worldwide, with companies and governments racing to take the lead. By joining the DoE’s space program and adding Vector Atomic’s sensing work, IonQ has placed itself in the middle of U.S. efforts that could open doors in defense, space, and secure links.
Is IonQ a Good Buy?
Turning to Wall Street, IONQ has a Strong Buy consensus rating based on six Buys and two Holds assigned in the last three months. At $61.50, the average IonQ stock price target implies 6.02% downside risk.
