Technology sector is poised to grow rapidly as demand for innovative solutions in different spaces is rising. Increasing digitization asks for more computing requirements which are now being fulfilled by cloud, edge and quantum computing. IonQ Inc. (NYSE: IONQ), a quantum software and hardware company, was rising after seeing a considerable downfall last year. IONQ stock price has surged over 30% since the year’s beginning.
Seattle expansion to increase employment
Recently, the company announced plans to expand operations into Seattle. The move is a part of their $1 billion investment plan for operations in the Pacific Northwest over the course of 10 years. Furthermore, the expansion is likely to provide employment in Washington State’s city.
Quantum computing space generated $458 million 2021. Research shows that it can grow at a Compound Annual Growth Rate (CAGR) of 31.2% to reach $5.2 trillion by 2030. Moreover, its hardware sector dominated the industry in 2021 and accounted for 65% market share. The segment may dominate for a while considering the increased manufacturing of quantum computing hardwares.
Quantum computers can overcome challenges in classic computing mechanisms. Its calculation speed is significantly higher than classical computing systems. Quantum computing can contribute in segments including data storage, gaming energy among others.
Currently, traditional games rely on binary sequences. Quantum computing can change this as it can massively enhance the way softwares run simulations or create environments. This will obviously be beneficial for metaverse development in future. The concept has not gone mainstream, yet, as it is still at a nascent stage.
Exponentially rising demand in the energy sector is directly proportional to the data and nodes operating in the space. Traditional computing may fail to handle loads considering the insufficient processing capability. This is where quantum computing may make a difference.
IONQ Stock Price Action
The company shares have shown positive momentum throughout this month. The price level above the 20-day EMA shows buyers’ dominance in the market. The stock abode the regression channel, registering a rebound as the year ended. The value is closing its resistance at $4.89 according to the fib retracement.
A breakthrough in price will open up a new window for the investors as resistance will move close to $6.3. Currently, IONQ stock is changing hands at $4.49, down by 1.1% since its previous close. The company has lost over 70% of its value since 2022 but a positive start to the year has tied some hope to the investors in 2023.
Disclaimer
Views given in the article belong solely to the writer and do not offer any investment advice.
Source: https://www.thecoinrepublic.com/2023/01/28/can-ionq-stock-retrieve-2022-high-after-gaining-over-30-in-a-month/