TLDR
- IonQ shares rose 14% in premarket trading Thursday after reports of federal funding negotiations with the Commerce Department
- The quantum computing company is discussing equity grants in exchange for at least $10 million in government funding
- IonQ achieved a world record in quantum fidelity on October 21, marking the highest accuracy level in the industry
- Second quarter operating losses reached $160.6 million, more than triple the prior year amount
- The company reports third-quarter earnings on November 5 with first-half revenue up to $28.3 million
IonQ stock jumped 14% in Thursday’s premarket session. The quantum computing company is negotiating a funding deal with the U.S. Commerce Department.
The discussions involve IonQ providing equity stakes to the federal government. The company would receive minimum funding of $10 million in return.
Other quantum computing firms are pursuing similar deals. D-Wave Quantum shares climbed 15% while Rigetti Computing gained 11% in premarket trading.
The Wall Street Journal broke the story Thursday morning. The Commerce Department has not responded to requests for comment.
IonQ became the first pure-play quantum computing stock in 2021. The stock has rallied nearly 300% over the past 12 months.
Revenue growth has been strong in 2025. The company generated $28.3 million in first-half sales compared to $19 million in 2024.
Record-Breaking Technical Achievement
IonQ announced a major breakthrough on October 21. The company achieved the highest fidelity level ever recorded in quantum computing.
Fidelity measures accuracy in quantum systems. High error rates have prevented quantum computers from scaling effectively.
The milestone could help IonQ advance commercial applications. Better accuracy makes quantum machines more reliable for real-world tasks.
Quantum computers rely on qubits rather than traditional bits. Qubits can exist in multiple states simultaneously.
This property lets quantum machines process certain calculations much faster. However, qubits remain sensitive to environmental interference.
Financial Performance and Valuation
IonQ continues to operate at a loss. The company posted a $160.6 million operating loss in the second quarter.
That represents more than triple the loss from the prior year period. The losses have grown as the company invests in development.
The stock’s price-to-sales ratio has reached elevated levels. Shares are trading at higher valuations than most of 2025.
Quantum Computing Inc is also exploring government funding options. That company’s shares rose 13% Thursday morning.
Third Quarter Results Due
IonQ will report third-quarter earnings on November 5. Investors will watch for revenue growth and loss trends.
The quantum computing sector is gaining momentum in 2025. This year marks the 100th anniversary of quantum mechanics.
Multiple companies are racing to commercialize quantum technology. Government support could accelerate development timelines.
The federal funding discussions show Washington’s interest in the sector. The Commerce Department appears willing to take ownership stakes in these companies.
IonQ stock continues to trade at elevated levels. The combination of technical progress and potential government backing has driven investor interest.
The company remains unprofitable despite achieving technical milestones. Thursday’s funding news pushed shares higher ahead of next month’s earnings report.
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