Shares of IonQ are set to fly high on the back of Microsoft’s recent technological breakthrough, according to DA Davidson. Analyst Alexander Platt reiterated his buy rating on the quantum computing stock, with his $50 price target implying that shares of IonQ could surge 46% from their Wednesday close over the coming year. IONQ 1Y mountain IonQ 1Y chart Shares of IonQ have more than tripled over the past year, soaring 215% in 12 months. The stock steadied Wednesday after plunging nearly 10% the day before, helped by Microsoft unveiling its first quantum computing chip , Majorana 1. Platt pointed to Microsoft’s chip debut as a catalyst for the entire quantum computing industry. Majorana 1 and other quantum computing chips stand to one day disrupt existing computer systems since they are theoretically capable of efficiently solving problems considered nearly impossible by basic computers. “Earlier today, Microsoft unveiled its Majorana 1 quantum chip, leveraging topological qubits, which directly challenge the idea that large-scale quantum systems require millions of physical qubits and brute-force error correction,” the Davidson analyst wrote. “This breakthrough from Microsoft signals to the industry that quantum computers capable of solving real industrial problems are now a matter of years away, not decades. We believe this moment serves as an undeniable validation of IonQ’s modular approach to quantum hardware, and thus reiterate our BUY rating and $50 PT.”
