Quantum computing company IonQ (IONQ, Financial) is strengthening its ties to the defense sector, announcing a new partnership with General Dynamics Information Technology to advance quantum technology within government and military applications.

Building on previous collaborations, including work with a major intelligence agency earlier this year, the two companies will co-develop quantum processing and networking applications. Their focus areas include quantum artificial intelligence (AI), resource optimization, and anomaly detection for federal and state agencies. The agreement signals growing government interest in quantum technology, as IonQ continues to expand its influence in the sector.

Last year, the company secured a $54.5 million contract with the U.S. Air Force Research Lab (AFRL), the largest quantum-related government award in 2024. Investor confidence in IonQ has also strengthened. Last month, Needham analyst Quinn Bolton raised his price target on IonQ to $54 from $18, citing quantum computing's potential to disrupt a significant portion of the $1 trillion computing market over the next decade. It's important to note that IONQ stock has surged north of 476% in the past six months alone.