Here's What a $10,000 Investment in IonQ Could Be Worth by October 2027

Though the technology is still in its early days, advancements in quantum computing are starting to pick up steam. Microsoft unveiled a new quantum chip in June and says it expects to build a scalable quantum computer by 2029. IBM is also working on a large-scale quantum computer, Quantum Starling, and plans to unveil it in 2029. Not to be left out, Alphabet and Amazon are also working on quantum chips.

Outside those tech giants, however, sit a number of much smaller pure-play quantum computing companies that investors may find intriguing.

One of these is IonQ (NYSE: IONQ). Founded in 2015, it focuses entirely on quantum-related areas, including computing, networking, and security.

The stock hasn't performed well over the last 12 months, however, having dropped 57% as of this writing -- dropping its market cap to just $13.8 billion -- while the S&P 500 rose 17% over the same period. Also, with a beta of 3.3, the IonQ stock price generally experiences swings that are 3.3 times as large as the broader market.

That said, based on analysts' one-year forecasts, by October 2027, the stock's trend line could have quite the reversal from the declines it has experienced over the past 12 months.

The outlook for the IonQ stock price

Analysts have a generally favorable opinion of the stock. According to CNN, of the 16 who cover it, 13 rate it as a buy, while three rate it as a hold. From that group, the median one-year price target is $65. On Oct. 13, its opening price was $35.82, so if it hits that target, a $10,000 investment will be worth approximately $18,146.

Looking at some other scenarios, the highest price target among those analysts is $100, which would turn $10,000 into $27,917. And even hitting the lowest price target of $49 would grow a $10,000 investment into a position worth about $13,679.

Investment considerations

Price targets, of course, aren't perfect predictions. All of those analysts could be wrong, and one year from now, IonQ's stock price could be flat or lower than it is today. What those targets do offer, however, is a sentiment gauge that investors can use to help establish a risk-to-reward framework as a part of their decision-making process.

Quantum computing may still be a few years away from being ready for more mainstream adoption in the business world, but the fact that big tech players like Alphabet, Amazon, IBM, and Microsoft have all gotten involved in the space shows that it has the potential to be more than a niche market. IonQ is currently seeing some of that momentum in its earnings results. In the second quarter, it reported $80.1 million in revenue, a 287% increase compared to the prior-year period. In that quarterly report, it also announced it was boosting its full-year revenue guidance from a $260 million to $270 million range to a $280 million to $290 million range.

IonQ, however, is still not profitable, and its losses are growing rapidly. In the second quarter, it lost $1.8 billion compared to a loss of $177.5 million in the prior-year period. Also, while IonQ has a technological lead over its rivals by one key measure, its quantum computers are not truly ready for commercialization yet. Because of this, its stock price may continue to experience volatile swings over the next several years as it develops and refines its systems.

Given the stock's upside potential, I would still feel comfortable investing in IonQ, but only with a small, speculative stake to start.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, IonQ, and Microsoft. The Motley Fool has a disclosure policy.