Stock-Split Watch: Is IonQ Next?

Quantum computing stocks are getting a lot of attention these days, and it’s easy to see why.

Over the past two years, the surge in AI-related stocks has sparked interest among investors seeking the next breakthrough technology with high profit potential. It seems that quantum computing could be a promising contender, given the shift in its perceived value over the last few months.

Back in December, I was absolutely thrilled when Alphabet unveiled an incredible breakthrough in the realm of quantum computing: their Willow chip! This marvelous device managed to complete a calculation that Alphabet claimed would take one of today’s most powerful supercomputers an unfathomable 10 septillion years. That’s right, you read it correctly – a computation that might as well be forever beyond our reach was accomplished in just five minutes!

Initially, Nvidia’s CEO Jensen Huang expressed skepticism about quantum computing, suggesting it would be at least 15 years before it became truly useful. However, he later retracted his remarks, stating in June that the technology is on the verge of a significant breakthrough, causing optimism to surge among supporters.

Due to a growing optimism towards quantum computing, shares of companies dealing in this technology have skyrocketed this year. Notably among them is IonQ (IONQ), being the largest of the four publicly traded quantum stocks available. These other three are D-Wave Quantum, Rigetti Computing, and Quantum Computing.

Due to a significant increase in value over the past year, IonQ’s market capitalization stands at an impressive $13.5 billion. This surge has caused the company’s stock to soar by over 400%, leading some investors to ponder if a potential stock split might be on the horizon. A stock split would increase the number of shares, but it would also lower the stock price, thereby maintaining its market capitalization.

Could IonQ’s stock split?

Rapidly increasing stocks are frequently considered suitable for stock dividends because many management groups aim to maintain a reasonable share price for individual investors, making it more accessible.

In simpler terms, a stock split doesn’t alter the underlying value of a stock; it merely reduces the individual share price by issuing more shares and splitting the overall value into smaller portions. However, there’s some indication that companies undergoing a stock split might experience better performance compared to others.

Management might decide to conduct a stock split at a time that symbolizes their confidence in the company’s expansion. This action could serve as an invitation for investors to purchase the stock, as some respond favorably to it. Additionally, a stock split signifies a significant step in the company’s own development.

In contrast, the current share price of IonQ stands at $46. Generally, stocks undergo a share price split when they reach numbers in the hundreds, and sometimes even over $1,000.

It’s not probable that a stock split will occur soon since the current share price stands at $46. However, if the stock continues to rise as it has, a stock split might become more feasible in the future.

Can IonQ keep gaining?

IonQ represents the most prominent publicly-traded company solely focused on quantum computing, yet its operational scale remains modest. In the initial quarter, the company’s revenue held steady at $7.6 million, while incurring a loss amounting to $32.3 million.

I’ve found myself captivated by this stock, as its value seems to be soaring on speculation about its future prospects rather than its present performance. It’s intriguing to see the progress it’s making in its strategic growth plan. In fact, just recently, the company unveiled a $22 million joint venture with EPB to construct a state-of-the-art Quantum Innovation Center in Tennessee! What an exciting development that could shape our technological future!

Alongside Nvidia’s inaugural Quantum Day event, our company showcased presentations highlighting quantum-enhanced computations. These demonstrations encompassed a blood-flow simulation utilizing quantum-computation data, yielding outcomes that were approximately 12% quicker than conventional methods.

IonQ’s advice indicates a speed-up in income expansion. They anticipate generating between $16 million and $18 million in the second quarter, and between $75 million and $95 million for the entire year. This suggests that the business is beginning to make significant progress, with projected earnings of $55 million to $72 million in the second half of the year.

It’s evident that the stock is set with high targets. If IonQ manages to match or surpass its projections, and as long as the overall optimistic trend persists, there’s a good chance the stock could rise further.

2025-07-23 15:40

Could IonQ’s stock split?

Can IonQ keep gaining?

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