Shares of quantum computing company IonQ (IONQ -5.44%) raced higher this week. The stock was up by 28.5% as of Friday morning, according to data provided by S&P Global Market Intelligence.

Many quantum computing stocks took off last year as investors hoped to get ahead of the crowd in what could be a transformational technology and stock sector. IonQ shares more than tripled in 2024, but reversed course to start the new year. The rebound this week came for a similar reason as the correction that occurred the week prior.

The year to become "Quantum-Ready"

Last week at the CES conference in Las Vegas, Nvidia CEO Jensen Huang commented that practical quantum computers could still be 15 to 30 years away. That hit these highflying stocks hard.

IonQ's technology for quantum computers involves using charged atoms (ions) as qubits. Qubits, or quantum bits, are the basic units of information in quantum computing. IonQ believes its technology provides competitive advantages, and it holds a large intellectual property portfolio.

This week, investors shrugged off Huang's extended timeline after Microsoft published a blog post saying that quantum research was accelerating and now was the time to become "quantum-ready." Also this week, IonQ announced a new $21.1 million deal with the United States Air Force Research Lab (AFRL) for the installation of quantum network infrastructure to help connect ground stations to drones.

The company also announced a new collaboration with the state of Maryland and the University of Maryland this week. IonQ, which is based in College Park, Maryland, plans to anchor a "state-of-the-art quantum intelligence campus" at the university.

IonQ is already generating revenue, too. Third-quarter sales more than doubled year over year to $12.4 million. It expects to report 2024 full-year revenue of about $40 million. But the excitement around quantum computing has driven its market cap to over $9 billion.

It's probably too early to be investing in IonQ, especially after the stock more than tripled in the last year. But it's still worth keeping an eye on quantum computing companies.