IonQ, the most acquisitive company among quantum computing stocks, on Tuesday announced an advance in long-distance communications networks. IonQ stock, which hit a record high on Monday, climbed on the news.
On Tuesday, IonQ announced progress in interconnecting quantum computers over long distances using the existing fiber optic infrastructure. The company said it has successfully converted visible photons from its trapped-ion systems into telecom wavelengths. The Air Force Research Lab supported the prototype demonstration, IonQ said.
During its acquisition spree, IonQ has expanded from quantum compute into building quantum key distribution (QKD) networks, eyeing U.S. government business and cybersecurity.
Also, the Department of Energy last week announced that it will partner with IonQ, Honeywell and the Electric Power Board of Chattanooga to develop technology use cases in space. IonQ recently hosted an analyst day where it discussed long-term strategy.
In morning trades on the stock market today, IonQ stock advanced more than 3% to 74.30. IonQ stock has gained 67% in 2025. On Monday, shares closed at an all-time high of 71.94.
In the June quarter, IonQ closed acquisitions of Lightsynq and Capella and announced the purchase of Oxford Ionics for over $1 billion. In other deals, IonQ purchased ID Quantique and Qubitekk.
Trapped-Ion Quantum Technology
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, quantum computing's ultimate benefit is that it aims to solve problems too complex for today's classical computers, such as simulating chemical reactions.
IonQ builds its quantum systems around trapped-ion technology, which is one of the leading approaches in quantum computing.
For the June quarter, IonQ reported a bigger-than-expected loss of 70 cents a share on an adjusted basis, vs. a loss of 18 cents a share a year earlier. Revenue climbed 82% to $20.7 million, including acquisitions. Analysts had forecast a loss of 29 cents a share using generally accepted accounting principles, or GAAP, with revenue of $17.2 million.
Meanwhile, quantum computing stocks have been volatile in 2025 amid controversy involving Nvidia, which cast doubt over how soon commercially viable quantum technology will be available. Nvidia, though, has now stepped up investments in quantum startups.
Quantum Computing Stocks Rally
In addition, Nvidia has built an open software platform for hybrid quantum-classical programming. And, it's expanding a quantum research center in Boston with partners
Quantum computing stocks have rallied in September as the Dow Jones, S&P 500, Nasdaq composite and Russell 2000 all hit record highs. There's speculation that the Trump administration could soon unveil new U.S. quantum technology initiatives similar to artificial intelligence.
IonQ stock holds an IBD Composite Rating of 85 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, IonQ stock holds an Accumulation/Distribution Rating of A-plus. That indicates buying in the stock by institutional investors.
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