Shares of IonQ (IONQ) jumped over 7% in after-hours trading yesterday after Amazon (AMZN) disclosed a $36.70 million stake in the quantum computing company. IONQ’s stock had gained 5.4% during the regular trading session as investors anticipated its second-quarter results, scheduled for release after the markets close on August 6. Wall Street expects IonQ to report a diluted loss per share of $0.29 on sales of $17.23 million.
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Amazon’s significant investment in IonQ reflects the tech giant’s strong conviction in quantum computing technology. After competing for dominance in artificial intelligence (AI), Amazon now seems to be preparing for leadership in the next major technological wave. According to a Bank of America strategist, quantum computing could reach practical use by 2033 and may ultimately have a greater impact on global markets than AI.
Why Did Amazon Invest in IonQ?
A 13F regulatory filing yesterday shows that the e-commerce giant purchased 854,207 shares of IonQ as of June 30, 2025. This stake totals $36.70 million based on the closing price of $42.97 on June 30. IONQ’s stake is a new addition to Amazon’s holdings, which also include stakes in AMD (AMD), Marvell Technology (MRVL), Rivian (RIVN), and Vital Farms (VITL).
IonQ excels in trapped-ion quantum computing, which results in higher fidelity, lower error rates, and more reliable quantum operations compared to other qubit types offered by rivals such as D-Wave Computing (QBTS) and Rigetti (RGTI). IonQ’s systems such as IonQ Forte and Forte Enterprise are already available on Amazon Braket, Amazon Web Services’ (AWS) quantum cloud service platform. These tools are designed to achieve high-fidelity (accurate and reliable) operations in the fields of drug discovery and climate modeling.
Amazon has also developed the Ocelot chip, which aims to reduce quantum error correction costs by 90%, making quantum chips five times cheaper than current methods and helping make practical quantum computing possible up to five years sooner. With its investment in IonQ, Amazon seeks to expand its presence in both the quantum hardware and cloud service markets.
Is IonQ Stock a Good Buy?
Analysts are highly optimistic about IonQ’s long-term stock outlook. On TipRanks, IONQ stock has a Strong Buy consensus rating based on six Buys and one Hold rating. The average IonQ price target of $49.17 implies 17% upside potential from current levels. Over the past year, IONQ stock has surged more than 482%.
