IonQ Inc. (NYSE: IONQ), a quantum computing firm, rallied by about 17% after a Japanese investor said that it had built a substantial stake.
Rakuten Securities purchased 90,000 shares in IONQ at a cost of $3.7 Million, representing about 1.5% its total portfolio. Quantum stock is now its ninth-largest holding.
Voting for IonQ as the future leader in quantum technology is a sign of continued interest from online brokers.
IonQ’s stock has fallen more than half from its high for the year, largely due to recent US tariffs that have caused a rout of US tech stocks.
What else could explain the IonQ surge on Wednesday?
IonQ’s shares have risen this morning, thanks to a milestone patent that the company achieved as a result of its recent acquisition.
Late February, a New York-listed firm acquired a majority stake in ID Quantique. The deal included almost 300 patents on quantum networks.
This transaction has resulted in IonQ’s intellectual properties portfolio receiving a major boost.
The company has nearly 400 patents on quantum networks, including those that are still pending.
IONQ’s shares are up this week but they still remain unattractive to income investors, as they don’t pay a current dividend.
What is the upside of IONQ now?
IonQ’s stock has now gained a total gain of around 25% since its low. Morgan Stanley’s analyst still sees a significant upside for the shares of this quantum computing company.
Earlier in the month, the firm reaffirmed that it had “equal-weight” rating for IONQ. However, its target price was reduced to $29.
The new target suggests that despite the revisions, there is still a possibility of gaining over 30% on current levels.
Morgan Stanley analysts lowered the price target for IonQ because of its much larger than expected loss in its fourth fiscal quarter reported by IonQ during February.
They did however express their confidence in the new management of the company. Niccolo De Masi was named as IONQ’s new CEO just a few weeks ago.
Why should you invest in Quantum Computing in 2025
The idea that quantum computing will one day have a widespread real-life application is still in dispute.
Rakuten Securities’ heavy investment in IonQ suggests that the Japanese company not only believes in this future, but also expects IonQ will play an important role.
IonQ is also a great investment because of the growing number of quantum network patents. Niccolo De Masi, its CEO:
Using our patent portfolio, consistent performance and delivery of quantum networking technology and milestones in business allows us to offer new solutions for customers.
The post Japanese Investment Pushes IonQ Stock Up 17% might be updated as new developments unfold.
