Better Artificial Intelligence Stock: Wolfspeed vs. IonQ

Core Viewpoint - The article compares two companies, Wolfspeed and IonQ, which are not traditionally classified as AI stocks but could benefit from the growth of the AI market. Wolfspeed focuses on silicon carbide (SiC) chips for electric vehicles, while IonQ specializes in quantum computing systems that may enhance AI processing capabilities [1][2]. Company Performance - Wolfspeed's stock has decreased by approximately 70% over the past year, while IonQ's stock has nearly tripled [3]. - Wolfspeed's revenue grew by 42% in fiscal 2022 and 24% in fiscal 2023, but only 6% in fiscal 2024 due to a cooling EV market and prioritization of AI GPUs by companies [4][5]. - Analysts predict a revenue decline of 6% for Wolfspeed in fiscal 2025, with expected revenue of $757 million and a widening net loss from$864 million to $1.09 billion [7]. - IonQ's revenue surged by 430$83 million in 2025 [10]. Market Position and Future Outlook - IonQ's quantum computing systems are designed to process data faster than traditional binary computers, but they currently face challenges such as high costs and power consumption [9]. - IonQ is expected to remain unprofitable in the near term but has significant growth potential as the quantum computing market expands [11]. - Wolfspeed's enterprise value is $6.5 billion, trading at nine times its fiscal 2025 sales, while IonQ, also with an enterprise value of$6.5 billion, trades at 78 times its sales for the current year [12]. - IonQ is favored as a better investment due to its faster growth, early mover advantage, and potential for broader adoption in AI applications compared to Wolfspeed, which may struggle to compete in the SiC market [13].