J.P. Morgan began coverage of quantum computing company IonQ (IONQ) with a Neutral rating and a December 2026 price target of $47, citing valuation.
Shares of IonQ rose about 3% premarket on Thursday.
“IonQ is uniquely positioned to lead the next generation of disruptive compute processing technology — quantum computing — which has the potential to unlock multi-trillion dollars in economic value and drive billions in hardware and software revenues in the longer term,” said analysts led by Peter Peng.
The analysts noted that while quantum computing remains in the early stages of adoption due to current compute capabilities, IonQ has outlined a clear technology scaling roadmap to drive commercial viability.
In addition, the analysts said that IonQ is developing a comprehensive, full-stack platform — similar to Nvidia’s approach — that integrates hardware (including compute, networking, security, and sensing), software, and ecosystem development.
“This strategy positions IonQ to address all three core areas of quantum technology — quantum computing, quantum sensing, and quantum communications — which in aggregate represents a $46B to $97B TAM [Total Addressable Market] by 2035,” said Peng and his team.
The analysts expect IonQ to continue its rapid revenue growth trajectory, supported by its leadership, strategic partnerships (i.e., Hyundai, AstraZeneca, Ansys), commercialization of products, and robust capital position.
“Despite our favorable view of IonQ’s technology and business outlook, we are initiating coverage at Neutral as we believe the risk/reward is fairly balanced at current price levels, reflecting a steep valuation. Overall, we believe IonQ is positioning itself as a leader in quantum technology with a unique fullstack approach and is well-funded to execute on its ambitious roadmap,” said Peng and his team.