Investors are back in love with quantum computing stocks, sending shares of IonQ (IONQ) up 15% in trading action on March 24.
Shares of quantum computing stocks have been trending higher and gathering momentum among retail investors following chipmaker Nvidia’s (NVDA) recent “Quantum Day” event. At that event, Nvidia CEO Jensen Huang said he was “wrong” when he earlier this year said that it would be decades before useful quantum computers emerge.
In addition to market leader IonQ, other quantum computing stocks such as D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and Quantum Computing (QUBT) are marching higher. In a reversal, Nvidia now appears to be going all in on quantum computing, announcing a new Boston-based research center dedicated to the technology.
Change of Tune
Nvidia said its researchers and developers will focus on quantum systems at the new Boston center and investigate the “most challenging problems” that are preventing wide-scale adoption of the technology. Quantum stocks such as IONQ are also getting a lift amid a broad-based rebound in U.S. stocks.
Quantum computer stocks such as IONQ, RGTI and QBTS can be volatile and tend to trade based on news headlines. That Nvidia is now promoting quantum computers appears to be lifting the stocks once again, with bulls back in control for the time being. IONQ stock is still down 40% on the year after a sharp pullback in recent weeks.
Is IONQ Stock a Buy?
The stock of IonQ has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on four Buy and two Hold recommendations assigned in the last three months. The average IONQ price target of $41.60 implies 63.52% upside from current levels.
Read more analyst ratings on IONQ stock
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