Is IonQ Stock a Buy After This 100-Qubit System Sale?

Core Insights - IonQ has secured a significant sale of a 100-qubit quantum system to the Korea Institute of Science and Technology Information (KISTI), aimed at advancing hybrid quantum-classical computing methods [1][8] - The financial specifics of the KISTI deal remain undisclosed, and the delivery timeline for the system is not clear [2] - Despite the impressive nature of the sale, the current market valuation of IonQ, with a market cap of $18.3 billion and a price-to-sales ratio of 229, raises concerns about the sustainability of its stock price [7][9] Quantum Computing Context - The 100-qubit system, while notable, is limited in practical application as IonQ's most advanced system in 2025 will only feature 36 qubits, highlighting the challenges in achieving meaningful quantum computing tasks [3][5] - Theoretical research indicates that transformative quantum computing applications will necessitate thousands of algorithmic qubits and millions of physical qubits, emphasizing the gap between current capabilities and future requirements [4][8] - After accounting for error correction, the effective number of algorithmic qubits available for research from the 100 physical qubits is reduced to 64, further illustrating the limitations of IonQ's offering [5] Market Perspective - The current enthusiasm among investors for IonQ's stock may be misplaced, as the company is perceived to be priced for perfection in a market that is still developing [7][9] - The potential for quantum computing to generate significant wealth in the long term is acknowledged, but the uncertainty surrounding which companies will succeed makes IonQ's stock a risky investment at present [9]