IonQ signs agreement with DOE to develop quantum tech in space

COLLEGE PARK, Md. - IonQ (NYSE:IONQ), whose stock has surged over 660% in the past year and currently trades near its 52-week high at $65.42, announced Wednesday it has signed a memorandum of understanding with the U.S. Department of Energy to advance quantum technologies in space, supporting the DOE’s Quantum in Space initiative. According to InvestingPro data, the quantum computing company now commands a market capitalization of $19.45 billion.

Under the agreement, IonQ will design and execute an orbital demonstration of quantum-secure communications using its satellite platform. The collaboration will also explore additional quantum applications including position, navigation, and timing systems, time synchronization, quantum networking, and sensing.

"This MOU provides a framework for exploring a range of quantum capabilities in orbit," said Rima Kasia Oueid, DOE Senior Commercialization Executive and lead architect of the Quantum-in-Space Collaboration. "By bringing in new partners, we are accelerating commercialization and expanding America’s role in the space economy."

The initiative builds on IonQ’s recent acquisitions of quantum networking pioneer Qubitekk in late 2024 and space technology company Capella in 2025. With impressive revenue growth of 67.83% over the last twelve months, IonQ is currently the only U.S. quantum computing company delivering commercial quantum networking systems, including installations with the U.S. Air Force Research Laboratory.

The agreement outlines several focus areas for exploration, including quantum-secure communication demonstrations, quantum sensing and mapping, and development of quantum algorithms for satellites. IonQ’s initial focus will be demonstrating quantum-secure networking using its satellite assets.

This collaboration reinforces the U.S. government’s growing investment in space-based quantum infrastructure, according to the company’s press release statement. While analysts anticipate continued sales growth, InvestingPro analysis suggests the stock is currently trading at a premium to its Fair Value. Investors can access 16 additional ProTips and comprehensive financial analysis through the Pro Research Report, available exclusively on InvestingPro.

In other recent news, IonQ has made significant strides with its strategic acquisitions and analyst evaluations. IonQ announced the completion of its acquisition of Oxford Ionics, a UK-based quantum computing company, which strengthens its technology portfolio and establishes a presence in the United Kingdom. This acquisition will bring Oxford Ionics’ team of scientists and engineers to IonQ, along with their patented trapped ion quantum system innovations. Additionally, IonQ entered into a definitive agreement to acquire Vector Atomic, a quantum sensing specialist. This all-stock transaction will enhance IonQ’s capabilities in positioning, navigation, and timing applications, adding over $200 million in government contracts to its portfolio.

On the analyst front, Benchmark raised its price target for IonQ to $75 from $55, maintaining a Buy rating, citing confidence in the company’s roadmap to achieve its 2 million qubit target by 2030. Craig-Hallum also increased its price target for IonQ to $65 from $50, following an analyst event described as a "coming-out party." These developments reflect IonQ’s ongoing efforts to expand its quantum computing and sensing capabilities, as well as the positive outlook from analysts regarding its future growth potential.

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