Key Points IonQ believes it technology has use cases in drug development, medical device design, and even industrial materials science. IonQ's stock price has increased nearly 350% in the past five years. The commercial viability of quantum computing is still in its early stages. 10 stocks we like better than IonQ › Quantum computing is moving from the theoretical to the commercially applicable, but only one company has achieved 99.99% two-qubit gate fidelity (a measure of results accuracy). Tha ...

Industry Overview - Quantum computing is an emerging technology with the potential to surpass artificial intelligence, but it is still in its early stages and has not yet been fully developed [2] - The primary challenge in quantum computing is its error-prone nature, which must be addressed before achieving fault-tolerance [3] Company: IonQ - IonQ is a leading company in quantum computing, recently achieving a two-gate fidelity of 99.99%, which, while still error-prone, positions it as a leader in the field [5] - The company utilizes trapped-ion technology, which employs identical atoms for greater stability compared to lab-fabricated qubits [6] - IonQ is developing a comprehensive quantum ecosystem similar to Nvidia's approach with GPUs, focusing on acquisitions to enhance its technology and build a quantum internet [7] Company: D-Wave Quantum - D-Wave Quantum is a pure-play quantum computing company that is close to establishing a viable commercial business model through its quantum annealing technology [8] - The company has a growing customer base and is beginning to ramp up revenue and bookings, focusing on specialized tasks like supply chain optimization [9] - D-Wave is making a significant move into gate-based systems, with over $830 million in cash available for investment, including a recent acquisition of Quantum Circuits for $300 million in stock and $250 million in cash [11]

Core Viewpoint - IonQ's stock has seen significant price increases, but concerns about its valuation and financial performance suggest it may not be a wise investment at this time [1][2]. Company Performance - IonQ's share price has increased over 1,200% since the beginning of 2023, attracting considerable investor interest [1]. - The company reported a revenue increase of 222% in the third quarter, reaching nearly $40 million [6]. - Despite revenue growth, IonQ's non-GAAP loss per share worsened to $0.17, compared to a loss of $0.11 in the same quarter last year [6]. Financial Metrics - IonQ's price-to-sales ratio stands at 140, significantly higher than the technology sector's average of just under 9, indicating a high valuation [4]. - Operating expenses rose to $208 million in the third quarter, up from approximately $65 million in the previous year, contributing to widening losses [7]. Market Context - The quantum computing market remains speculative, with practical applications still years away, as noted by major players like Alphabet [8][9]. - Investor sentiment has been optimistic, but there are signs of a shift, with IonQ's stock gaining only 9% in 2025 compared to the S&P 500's nearly 17% increase [9]. Investment Outlook - IonQ's current stock price is viewed as excessive, with significant losses and an uncertain market future, leading to recommendations against purchasing its shares [11].

Core Viewpoint - Nebius, SoundHound AI, and IonQ are identified as stocks with potential for significant growth, particularly in 2026, as they are in the early stages of their growth trajectories [1][2]. Nebius - Nebius specializes in cloud computing infrastructure focused on artificial intelligence, with a significant increase in expected contracted power capacity from 1 gigawatt to 2.5 gigawatts by the end of 2026, indicating substantial revenue growth potential [3]. - If projections are met, Nebius's annualized run rate revenue could rise from $551 million in Q3 2025 to between $7 billion and $9 billion by the end of 2026, representing parabolic growth [5]. - The current market cap of Nebius is $25 billion, with a current stock price of $97.93 and a gross margin of -1312.43% [4][5]. SoundHound AI - SoundHound AI integrates generative AI with speech recognition, allowing clients to automate customer interactions, leading to a 68% year-over-year revenue increase in Q3 [7]. - The company has secured contracts with major clients, including three of the top 10 global financial services firms, which have expanded their agreements [7]. - Management projects organic growth of 50% or more for the foreseeable future, positioning SoundHound AI for potential parabolic growth [9]. IonQ - IonQ is a leading player in the quantum computing sector, which is at the beginning of its growth phase, with commercial viability expected around 2030 [10]. - The current market cap of IonQ is $18 billion, with a stock price of $49.45 and a gross margin of -747.41% [11]. - There is potential for significant stock movement if IonQ announces a major partnership or breakthrough in quantum computing technology [12].

Core Viewpoint - IonQ is positioned as a leader in the quantum computing sector, focusing solely on quantum technology and aiming for significant growth potential despite its smaller market cap of under $20 billion [1][3]. Company Overview - IonQ is a pure play in quantum computing, which makes it attractive to aggressive growth investors [1]. - The current market cap of IonQ is approximately $18.2 billion, with a current stock price of $49.44 [3][11]. Market Potential - The global quantum computing market is projected to be worth between $28 billion and $72 billion, indicating uncertainty about the technology's success [8]. - If IonQ captures the entire high-end market projection of $72 billion and achieves a profit margin of 50%, it could reach a market cap of $1.8 trillion [9]. Competitive Landscape - IonQ utilizes a trapped ion approach, which offers superior accuracy compared to competitors using superconducting methods, with IonQ achieving over 99.99% two-qubit gate fidelity [5]. - The competition in quantum computing is intense, with both pure plays and established tech giants like Alphabet and Microsoft vying for dominance [2][7]. Challenges and Opportunities - IonQ must establish a strong market presence before competitors improve their accuracy and processing speeds [6][7]. - Achieving widespread adoption of its technology is crucial for IonQ to maintain its first-mover advantage [8]. Financial Metrics - IonQ's gross margin is reported at -747.41%, indicating significant financial challenges [11].

Core Insights - IonQ's growth strategy focuses on sustained R&D investment and organic expansion across various technology sectors, with R&D spending reaching $66.3 million in Q3 2025, nearly doubling year-over-year [2][10] - The company has made significant advancements in its technology roadmap, including the early completion of the AQ 64 Tempo system and achieving 99.99% two-qubit gate fidelity [2][10] - IonQ's commercial model is supported by R&D-led investments, enabling larger contracts and a global reach, while the company is well-positioned for continued innovation funding in 2026 [4][10] R&D and Technology Development - IonQ's R&D investments are directly linked to enhancing its core technology, including the integration of Oxford Ionics' Electronic Qubit Control architecture [2] - The company has scaled its engineering teams post-Oxford Ionics acquisition and is focused on improving expertise in computing, networking, sensing, and cybersecurity [3] - IonQ's balance sheet has been strengthened through significant capital raises in 2025, allowing for ongoing internal funding of innovation [4] Market Position and Performance - IonQ's shares have increased by 9.8% over the past six months, underperforming the industry growth of 54.2% and the S&P 500's 13.2% [8] - The company currently trades at a forward Price-to-Sales (P/S) ratio of 86.9X, significantly higher than the industry average of 4.8X, indicating an expensive valuation [12] Peer Comparison - D-Wave Quantum hosted its Qubits 2025 user conference, showcasing advancements in hybrid quantum solvers and optimization applications, and announced participation in CES 2026 [5] - Rigetti Computing launched its 36-qubit multi-chip quantum computer, Cepheus-1-36Q, and secured a $5.8 million contract from the Air Force Research Laboratory [6][7]

Core Insights - Quantum computing stocks, including IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc., are experiencing significant hype and price increases, but historical trends suggest a potential bubble burst in the near future [3][6][22] Group 1: Market Dynamics - The quantum computing sector is projected to contribute up to $850 billion to global GDP by 2040, creating a substantial addressable market that has driven stock prices up dramatically [4][6] - Since October 1, 2024, the stock prices of IonQ, Rigetti, D-Wave, and Quantum Computing Inc. have surged by 521%, 3,270%, 3,290%, and 1,790% respectively, indicating extreme investor enthusiasm [5][6] Group 2: Financial Considerations - Early-stage quantum computing companies are expected to face operating losses and cash burn, leading to share-based dilution as a common practice for raising capital [7][9] - IonQ raised $2 billion through a stock offering, selling shares at $93, which has since decreased to $50.76, highlighting the risks of dilution for existing investors [8] Group 3: Valuation Challenges - Traditional valuation metrics are difficult to apply to early-stage companies with no earnings, but the price-to-sales (P/S) ratio can provide insights; historical data shows that P/S ratios above 30 are unsustainable [11][12] - Current P/S ratios for leading quantum computing stocks indicate they remain in bubble territory, suggesting potential for significant price corrections [13] Group 4: Market Environment - The overall stock market is currently at a high valuation, with the S&P 500's Shiller P/E Ratio nearing 41, which historically signals potential downturns for high-priced stocks [15][16] - Volatility in the market tends to disproportionately affect the most expensive stocks, which could include quantum computing companies that have not yet proven their business models [17] Group 5: Competitive Landscape - The barrier to entry in the quantum computing industry is lower than perceived, with established tech giants like Alphabet and Microsoft developing their own quantum technologies, posing a threat to current players [18][21] - The first-mover advantage held by current quantum computing companies may be eroded as larger firms with more capital and resources enter the market [20][21]

Core Viewpoint - Quantum computing stocks, including Rigetti, D-Wave, and IonQ, have seen significant returns over the past three years, but their valuations are bubble-like and likely to collapse by 2026 due to a lack of corresponding sales and earnings growth [1][12]. Group 1: Market Overview - Quantum computing is currently a microscopic market, with sales projected to reach $4.2 billion by 2030, compared to the AI market, which is expected to total $1.8 trillion, making AI 425 times larger [8]. - General-purpose quantum computers are estimated to be a decade or two away from being useful for most enterprises, with experts suggesting that tens of thousands to millions of physical qubits will be necessary for practical applications [2][3]. Group 2: Company Performance - Rigetti Computing's shares have increased by 3,210%, D-Wave Quantum's shares by 1,970%, and IonQ's shares by 1,290% over the past three years [5]. - Rigetti specializes in superconducting quantum computing with plans to launch 1,000-qubit systems by the end of 2027, while D-Wave focuses on quantum annealing with 5,000 qubits in its most advanced systems, and IonQ specializes in trapped-ion quantum computing with a goal of 20,000 qubits by 2028 [6]. Group 3: Valuation Metrics - Rigetti shares trade at 928 times sales, D-Wave at 362 times sales, and IonQ at 150 times sales, with projected revenue growth rates of 124%, 69%, and 84% annually through 2027, respectively [13]. - The current valuations of these quantum computing stocks are significantly higher than the most expensive stocks in the S&P 500, which trade at an average of 55 times sales, indicating that Rigetti would need to fall 94%, D-Wave 84%, and IonQ 63% to align with those valuations [11].

Core Insights - IonQ Inc. is recognized as a strong buy stock, particularly following its strategic partnership with the Korea Institute of Science and Technology Information (KISTI) and the upcoming delivery of a 100-qubit IonQ Tempo quantum system [1] Group 1: Strategic Partnership and Deliverables - The finalized agreement includes the delivery of the next-generation Tempo 100 quantum system to support KISTI's hybrid quantum-classical research initiatives, marking a significant milestone for South Korea's National Quantum Computing Center of Excellence [1] - The system will be integrated into KISTI-6, the largest high-performance computing (HPC) cluster in Korea, facilitating hybrid quantum-classical onsite integration [2] Group 2: Access and Collaboration - The compute cluster will be accessible through a secure private cloud environment, allowing remote access for South Korean universities, researchers, and enterprise users [2] - The collaboration with KISTI will enable the delivery of expertise, algorithms, and infrastructure necessary for deriving long-term technological and economic value from IonQ's leading quantum computers, as stated by the Chairman and CEO, Niccolo de Masi [3] Group 3: Development and Operations - KISTI will lead the development and operation of a quantum computing service and research platform, identifying IonQ as the primary quantum technology provider for the project, alongside Megazone Cloud, a prominent cloud service provider in South Korea [4] - IonQ specializes in the development and manufacturing of quantum computers, focusing on quantum computing and quantum information processing [5]

Core Insights - Quantum computing is expected to make significant advancements in 2026, although it will not reach mainstream adoption yet [1] - Companies like Alphabet, Microsoft, Nvidia, and IonQ are positioned to benefit from developments in quantum computing [1][6] Group 1: Alphabet and Microsoft - Alphabet and Microsoft are leading players in quantum computing due to their vast resources and strong cloud computing divisions [2][3] - Both companies aim to develop their own quantum computing hardware to control costs and improve margins when renting out capacity [3] - The competitive landscape will keep both companies engaged in quantum computing, although AI will be the primary driver of their growth in 2026 [6] Group 2: Nvidia - Nvidia is a key player in AI and traditional computing, providing a bridge between quantum computers and supercomputers through its NVQLink technology [7][9] - While Nvidia is not directly developing quantum computing units, its technology supports hybrid systems that could be crucial for future quantum computing applications [10] Group 3: IonQ - IonQ is a pure-play quantum computing startup focused on achieving commercial viability through high accuracy [11] - The company holds a record for two-qubit gate fidelity at 99.99%, significantly higher than competitors, positioning it favorably in the market [12][13] - IonQ's progress in reducing error rates could lead to substantial stock growth if it continues to advance its technology [14]