When it comes to investing in artificial intelligence (AI), growth investors are beginning to look beyond the usual suspects in data centers, semiconductors, enterprise software, and cloud computing. The newest pillar supporting the AI bull narrative is quantum computing.
IonQ (NYSE: IONQ) has emerged as one of the most influential names powering the quantum AI narrative. Let’s dive into the company’s performance last year and assess if now is a good time to buy this hot stock hand over fist.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
According to McKinsey & Company, quantum computing applications could drive up to $2 trillion in economic value by 2035. With this type of growth potential, it’s natural for investors to identify the companies fueling this new technological frontier. On the surface, IonQ seems to fit the definition of a category leader over its competition.
In 2025, IonQ generated $130 million in revenue — significantly higher than other quantum computing pure plays like Rigetti Computing and D-Wave Quantum. Considering IonQ’s revenue slope is accelerating, the company must be positioned for an even more explosive year in 2026, right? Well, not so fast.
Over the last few years, IonQ has spent more than $4 billion on acquisitions. Management has told investors that the various assets IonQ is acquiring are geared toward building a full-spectrum, vertically integrated quantum AI platform. Admittedly, this approach could work out in the long run. Should IonQ execute on its vision, the company can benefit in multiple ways.
First, bringing various components of the value chain in-house should help reduce operating costs over time. In addition, as IonQ bolsters its ecosystem, the company may become more indispensable to its strategic partners — including cloud hyperscalers Microsoft Azure, Amazon Web Services, and Alphabet‘s Google Cloud Platform, as well as AI king Nvidia.
But despite the company’s meteoric revenue growth, IonQ’s operating margins are underwater. Last year, IonQ burnt $2.4 billion between operating and financing cash flows. And the company still managed to have a cash surplus of over $1 billion by the end of the year. How is that possible?
The answer is simple: IonQ issued more than $3 billion of stock. The subtle theme here is that the company has taken advantage of its rising, hype-driven stock price, issuing additional shares at a premium. In turn, management uses this capital to fund the company’s acquisition pipeline and mask what they are doing by pumping their revenue growth.
