UK’s Investment Security Unit (ISU) has cleared IonQ Inc’s (NYSE: IONQ) more than $1.0 billion acquisition of Oxford Ionics.
The quantum computing stock soared nearly 20% on the news today.
The regulatory green light removes the final hurdle for the aforementioned transaction, which now looks set to close imminently.
Today’s rally pushed IONQ shares’ relative strength index (RSI) over 75 – signalling technically overbought conditions.
For long-term investors, though, that may not be a reason to sweat and sell.
Why is the UK’s regulatory approval significant for IonQ stock
The Oxford Ionics deal is more than just a geographic expansion – it’s a strategic leap forward.
Oxford Ionics brings cutting-edge ion-trap technology that can be manufactured using standard semiconductor processes, solving a major scalability challenge in quantum computing.
By combining IonQ’s existing compute and networking stack with Oxford’s silicon-based qubit control systems, the company is positioned to deliver more powerful, reliable, and commercially viable quantum machines.
The agreement also strengthens IonQ’s presence in the UK, aligning with broader transatlantic cooperation in next-gen tech.
With all conditions now satisfied, investors are betting the takeover will prove meaningful for the NYSE-listed firm’s roadmap to fault-tolerant quantum systems, which could drive IONQ stock up further through the remainder of 2025.
Does valuation remain an overhang for IONQ shares?
IonQ shares are currently trading at a seemingly alarming price-to-sales (P/S) ratio of over 300 – but the long-term narrative warrants looking beyond valuation concerns.
The 2015-founded firm is uniquely positioned within the quantum computing market.
Unlike rivals building artificial qubits, IonQ uses trapped ions (actual atoms), which are inherently more stable and less prone to errors.
IONQ has also developed proprietary error-reduction technologies like Clifford Noise Reduction – pushing logical accuracy even further.
Additionally, its partnerships with renowned cloud providers allow developers to experiment with quantum workloads today, giving IonQ stock a real-world edge.
Financially, it’s one of the best-capitalised players in the space, boasting over $1.6 billion in cash and zero debt.
This enables aggressive R&D, strategic hiring, and acquisitions like Oxford Ionics, Lightsynq, and Capella – all aimed at building a robust quantum ecosystem.
In short, IonQ is investing in the full stack: hardware, software, and networking – much like NVDA in artificial intelligence – which could create a defensible moat and position IONQ as the backbone of quantum infrastructure.
Is it worth investing in IonQ shares today?
Quantum technology may still be in its early innings, but IonQ stock is evidently playing to win.
The Oxford Ionics deal adds depth to its technology and expands its global footprint.
While the quantum computing stock’s RSI suggests short-term froth, long-term investors should focus on the bigger picture: IonQ is building the architecture, partnerships, and capital base needed to lead the quantum revolution.
That’s primarily why Wall Street currently has a consensus “buy” rating on the quantum computing stock with price targets going as high as $70, indicating potential upside of another 25% from here.
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