IonQ (NYSE: IONQ) stock is surging in Wednesday’s trading. The company’s share price was up 19.2% as of 1:30 p.m. ET and had been up as much as 19.2% earlier in the daily session.
After the market closed yesterday, IonQ published a press release announcing a series of new approved and pending patents. The company has been granted five new patents, and it’s also on track to own 118 additional patents following its acquisition of Quibitekk — a quantum-networking specialist.
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Out of its five new patents, IonQ highlighted its patent for a “Double Individual-Addressing Multi-Beam Raman System” as being particularly noteworthy. Here’s what the company’s press release had to say about the proprietary technology:
The patent recognizes IonQ’s unique method for controlling the individual laser beams that are trapping its ion — both upon entry and exit. Whereas previous techniques offered control in only one direction, this new approach introduces a way to control the individual beams for each atom while requiring fewer laser beams overall — a critical hurdle to achieving scale.
Investors are pouring into the quantum-computing specialist’s stock following the recent patent news, and the action is extending an already-impressive bull run. The company’s share price is now up more than 155% over the last month.
After the acquisition of Qubitekk is completed, IonQ will have more than 600 U.S. and international issued and pending patents. The company is treating building its patent library as a competitive advantage that will give it exposure to multiple quantum technologies and establish competitive advantages that pave the way for potentially explosive long-term success.
IonQ has recently been making some significant technological progress and landing new partnerships, and investors are excited that quantum computing could open the door for dramatic leaps for artificial intelligence (AI) applications. On the other hand, investors should keep in mind that the company’s outlook is still highly speculative. Predicting how the technology will progress and how IonQ’s competitive positioning in the space will shape up involves a high degree of guesswork, and the stock could be poised for volatile swings.
Following recent gains, IonQ has a market cap of roughly $5.9 billion and is valued at roughly 142 times this year’s expected sales. If the company can continue making progress on quantum-computing tech and land large-scale commercial deals, its share price will likely soar above current levels. But such scenarios depend on major technological breakthroughs that could be many years out even if they arrive, and the stock is very risky.
