Nvidia Partners with IonQ in Quantum Computing Push

Nvidia has partnered with IonQ, a pure-play quantum computing start-up, to install its Superion 256 system at Nvidia's Accelerated Quantum Research Center. This move is seen as a strategic step for both companies.

IonQ's Superion 256 features 256 trapped-ion qubits and uses the same technology that achieved 99.99% 2-gate fidelity in lab testing. Its quantum computing chips are also fabricated on traditional semiconductor lines, making them manufacturable on a mass scale.

Nvidia dominates the rapidly growing AI accelerator industry and has begun to leverage its success into other product lines, including quantum computing. The company's revenue rose by 96% year over year in the first half of its fiscal 2027, while its net income surged by 161%. Nvidia trades at a price-to-earnings ratio of 28 and a price-to-sales ratio of 18 times.

IonQ, on the other hand, has struggled financially, with a loss close to $1.1 billion in the first two quarters of this year. Its stock has declined by 40% over the last year, and its price-to-sales ratio remains high at 61.