When we last left InoQ (IONQ) , the quantum-computing company’s stock was sinking like a submarine with a screen door.
IonQ’s shares took a beating last month following a mixed earnings report and a negative outlook. Revenue had climbed but losses were mounting.
The company entered an agreement with the investment banks Morgan Stanley and Needham, under which IonQ might sell as much as $500 million of stock at prevailing market prices, potentially diluting current shareholders.
IonQ had also gotten hammered in January when Jensen Huang, founder and CEO of AI superpower Nvidia (NVDA) , had some discouraging words for the quantum-computing sector.
“If you kind of said 15 years for very useful quantum computers, that’d probably be on the early side,” Huang told analysts. “If you said 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
Investors got the hint and promptly dumped their shares of IonQ and other companies such as Rigetti Computing (RGTI) , D-Wave Quantum (QBTS) and Quantum Computing (QUBT) .
Quantum computers have the potential to work with better algorithms that could transform machine learning across a range of industries from autos to pharmaceuticals.
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IonQ gets a boost from a brokerage
Some observers suggested that Huang’s comments might have been motivated by self-preservation, including TheStreet Pro’s Stephen Guilfoyle who wondered at the time whether Nvidia stood to gain “if the quantum computing craze is pushed out a bit.”
Let’s pause a moment here to explain that this is a field of computer science that uses quantum mechanics to solve problems that are too difficult for classical computers.
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While today’s computers use binary electrical signals to represent ones or zeros, quantum computers employ quantum bits or qubits, which are subatomic particles.
Analysts have said that quantum computers have the potential to work with better algorithms that could transform machine learning across a diverse range of industries, from automotive to pharmaceuticals.
And now back to our story.
While the year got off to a rough start, IonQ’s stock got a healthy boost on March 12 after the Japanese online brokerage Rakuten Securities disclosed in a recent filing that in the fourth quarter it had bought more than 90,000 shares of IonQ, valued at about $3.7 million.
Firm says quantum computing could be a reality soon
The company was a new addition for Rakuten and made up 1.5% of. the firm’s portfolio, according to the quarterly Securities and Exchange Commission 13F filing.
IonQ shares took off and were up nearly 18% to $22 a share at last check. Shares of Rigetti Computing, D-Wave Quantum and Quantum Computing were also surging.
Related: Surprising news slams popular quantum computing stock
Rakuten Securities also boosted its stake in the bitcoin and business- intelligence-software company MicroStrategy (MSTR) by 24.8%, chip company Broadcom (AVGO) by 124% and Tesla (TSLA) by 50%, which was the firm’s top purchase.
The firm sold off more than 46,000 shares of Nvidia, marking a 11.2% change.
“The dream of quantum computing might become reality quicker than expected,” the consulting firm McKinsey said in a Sept. 19 blogpost. “Quantum industry leaders agree that QC could revolutionize industries, scientific research, and technology.”
The firm said that several key themes are essential for developing a robust QC ecosystem, including talent development, effective collaboration models, and managed expectations.
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