Latest news with #IonQ
Yahoo
an hour ago
- Business
- Yahoo
Could IonQ Become the Next Nvidia?
IonQ is an innovator in the high-growth area of quantum computing. The company has grown revenue by selling hardware and services to those aiming to win in this potentially game-changing field. 10 stocks we like better than IonQ › Any investor would love to get in on the next Nvidia (NASDAQ: NVDA). This tech giant has led the artificial intelligence (AI) race, developing a dominant and likely lasting position in the AI chip market, and that's translated into spectacular earnings and stock price performance. Today's biggest movers and shakers in the development of AI platforms -- from Alphabet to Microsoft -- are among Nvidia's major customers. And when Nvidia announces a new chip, these giants and many others rush to be the first to buy it. So, it's fair to say Nvidia has played and will continue to play a key role in this billion-dollar -- and soon to be, if analysts' predictions are right, trillion-dollar -- AI boom. There's still plenty of room to get in on the Nvidia growth story, but investors also are looking to another innovative market that could result in a similar boom, and that's quantum computing. In fact, quantum company IonQ (NYSE: IONQ), which has seen its stock price soar more than 400% over the past year, recently suggested it could become the Nvidia of quantum computing. Can this quantum player potentially follow in AI superstar Nvidia's footsteps? AI involves the training of large language models to solve complex problems. Eventually, software with greater and greater capabilities in these areas can be set to work in the form of AI agents that will make companies more efficient and help them save money. And AI can be applied in many ways to specifically advance certain industries -- for example, in healthcare, it can find better drug candidate more quickly. This AI revolution is happening now, with technology that supports those goals. Quantum computing is a complementary but different technology. It uses quantum mechanics to solve problems that today's computers are unable to handle. Companies in the industry have various ways of advancing the technology, but they each involve using qubits to store and process data. Qubits -- as opposed to the bits used in traditional computing -- can represent more than one state: a 0, 1, or any combination of the two. This supercharges the computing process, resulting in speed and extraordinary capabilities. In the case of IonQ, the company captures ions to use as qubits, cools them, then with lasers guides the calculation process. Quantum computing still is in the early stages of development, and IonQ even said in its 2023 annual report that its ability to grow revenue and reach profitability "will depend heavily on the successful development and further commercialization of our quantum computing systems." Still, IonQ has made significant progress over the years and currently generates revenue through the sales of hardware and related services, and the company also makes its quantum systems available to customers through Amazon's Amazon Web Services (AWS), Microsoft Azure, and Alphabet's Google Cloud. Finally, IonQ sells quantum computing consulting services, helping businesses apply the technology to their needs. All this has helped IonQ's revenue to soar over time, but it's gotten further and further away from profitability as it invests in this potentially game-changing technology. This isn't a surprising pattern, though, for a company involved in a technology at this stage of its development story. Now, let's consider the Nvidia comparison. IonQ's chief executive officer, Niccolo de Masi, in a recent Barron's interview, suggested the company will be the Nvidia of the quantum computing market, the leader that others will follow. "I believe IonQ will be the Nvidia player. There will be other people that copy us and follow us; they have always copied and followed us," de Masi said. We can draw two key parallels. It's true that, like Nvidia, IonQ is focused on the full stack of software, offering customers everything they may need along their path in this technology. So IonQ is setting itself up for a dominant position in the market. IonQ also is the biggest pure-play quantum company by market value, now at more than $11 billion. Investors have piled into IonQ on optimism about its technology and growth. Similarly, Nvidia's $3.3 trillion market cap sets it well ahead of chip rivals such as Advanced Micro Devices and Intel. Now let's consider differences. While IonQ might become just as successful as Nvidia down the road, it's not traveling an identical path. Nvidia launched its initial public offering in 1999 and went on to immediately report not only revenue growth but increasing profitability. Prior to the AI boom, Nvidia served the video gaming market with its graphics processing units (GPUs), so the company had a solid main business before branching out into AI. IonQ, which launched in 2015 and went public in 2021, started out specializing in a new and complicated technology, so its route to profitability may be longer and riskier. All of this means that, IonQ, by going all in on a given technology -- in this case quantum computing -- resembles Nvidia. And aggressive investors aiming to get in now on potential winners should consider picking up a few shares of this innovator. But, considering that quantum computing is IonQ's focus, and this technology isn't yet fully developed, it's too early to predict with 100% certainty that this quantum player will follow in Nvidia's footsteps, dominating in its market and delivering explosive growth. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Intel, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Could IonQ Become the Next Nvidia? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Jim Cramer on IonQ, Inc. (IONQ): 'It's Too Speculative for Me'
We recently published a list of . In this article, we are going to take a look at where IonQ, Inc. (NYSE:IONQ) stands against other stocks that Jim Cramer discusses. A caller asked if IonQ, Inc. (NYSE:IONQ) stock's current valuation makes sense given that the company has acquired government contracts. In response, Cramer said: 'Oh my god, it's so high and it's losing so much money, but it's quantum. If I offer you a considered explanation of why I think that stock's too expensive, most people ignore it, so all I'm going to say is it's too speculative for me. I don't know what else to say.' A quantum computer on a countertop in an engineering laboratory with a technician at work. IonQ (NYSE:IONQ) develops and sells access to quantum computers. Additionally, the company provides related hardware and cloud services, and works on technologies like quantum networking, detection systems, and algorithm development. In January, appearing on Squawk on the Street, Cramer commented: 'But frankly, I'm going to use the word chimerical, in the sense that these companies, none of these companies, have much in terms of revenue. Except for IONQ.' Overall, IONQ ranks 12th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of IONQ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IONQ and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14 hours ago
- Business
- Yahoo
These 4 Quantum Stocks Outperformed in May—Is There More Room to Run?
Quantum stocks just posted eye-popping gains—but can the rally defy summer seasonality? Early-stage hype is clashing with traditional valuation models—and investors don't seem to care. With Nvidia comparisons and better-than-expected earnings, the quantum buzz may not fade just yet. Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro's AI-selected stock winners. Having already enjoyed a strongly bullish April, quantum computing stocks accelerated their gains in May, as more investors bet on this emerging technology becoming the next major market driver—much like AI is today. Quantum computing has the potential to redefine the boundaries of technological innovation, with experts estimating that this revolution could generate trillions of dollars by 2040. Unlike classical computers that process bits as either 0 or 1, quantum systems use qubits, which can exist in multiple states simultaneously. This enables them to solve problems that would take today's most powerful supercomputers thousands of years to crack. Such computing capabilities offer massive potential to accelerate advancements across countless industries and to create entirely new markets. Naturally, several major tech companies are active in developing quantum technologies, including Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and IBM (NYSE:IBM). However, these tech giants have diverse operations and are far from being pure plays in quantum computing. As a result, investors seeking more direct exposure are turning their attention to dedicated quantum firms. The most closely watched among them are D-Wave Quantum Inc (NYSE:QBTS), IONQ Inc (NYSE:IONQ), Rigetti Computing Inc (NASDAQ:RGTI), and Quantum Computing Inc (NASDAQ:QUBT)—all U.S.-listed. These stocks have posted strong gains in recent weeks: D-Wave Quantum surged more than 150% over the past month (as of Wednesday's close). Quantum Computing rose 85% over the same period. IonQ climbed 69% month-on-month. Rigetti Computing gained 60% month-on-month. Several recent developments have helped drive these impressive gains, including better-than-expected Q1 earnings results: D-Wave Quantum reported a loss per share of -$0.02 on May 7, beating the expected -$0.06. IonQ also reported on May 7, posting a loss per share of -$0.14 versus the expected -$0.28. Rigetti posted EPS of $0.13 on May 12, well above the forecasted loss of -$0.05. Quantum Computing reported Q1 EPS of $0.11 on May 15, compared to expectations of a -$0.05 loss. In addition, remarks from IonQ's CEO last week—where he compared his company to Nvidia (NASDAQ:NVDA)—appear to have energized investor sentiment, triggering sharp moves across all four stocks. After two months of strong gains, a key question emerges: Can quantum computing stocks maintain their momentum through the summer, a period historically known for market weakness? To assess this, it's worth noting that all four stocks currently appear significantly overvalued based on InvestingPro Fair Value, which aggregates multiple respected financial models. However, given that quantum computing is still in its early stages and the technology is far from mature, the relevance of traditional valuation models—rooted in present and historical data—may be limited. We therefore looked at analyst forecasts, which remain cautious. Only Rigetti Computing shows upside potential based on the average analyst target—and even then, the expected gain is modest at +5.9%. Source: InvestingPro Although quantum computing is definitely a technology to watch, investing in the sector's specialist stocks at this time, after several weeks of powerful gains, would undoubtedly be bad timing. Against this backdrop, investors looking for high-potential tech stocks to buy for June and beyond would do well to turn to other options, such as ProPicks AI's Tech Titans strategy, an AI-powered stock list updated monthly for InvestingPro subscribers. This smart, sector-focused strategy outperformed in May: 11 out of 15 picks delivered double-digit gains 3 stocks surged over 20% Only 2 names posted minor losses And it's no fluke— Tech Titans has consistently outpaced the market, with a strong track record evident in the chart below: The new list of June picks drops this AI: AI-selected stock winners with a proven track record. InvestingPro Fair Value: Instantly find out if a stock is underpriced or overvalued. Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters and criteria. Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying. ****Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor." Related articles These 4 Quantum Stocks Outperformed in May—Is There More Room to Run? Nvidia Rides the AI Supercycle With Another Beat - And Still Looks Underpriced 1 Stock to Buy, 1 Stock to Sell This Week: Nvidia, Kohl's
Globe and Mail
14 hours ago
- Business
- Globe and Mail
Should You Buy IonQ Stock for Just $45?
So far this year, many of the hottest stocks fueling the artificial intelligence (AI) revolution have taken a breather. As of the closing bell on May 23, shares of Nvidia, Amazon, Alphabet, Apple, and Tesla have negative returns on the year. With megacap technology stocks showing some signs of fatigue, where else could growth investors be looking? As far as I can tell, those focused on AI have been looking beyond the "Magnificent Seven" and are redeploying capital into emerging opportunities in this sector. One such area that is fetching quite a bit of attention right now is quantum computing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » When it comes to quantum computing stocks, IonQ (NYSE: IONQ) might just be the hottest ticket in town. Shares are up just 9% on the year and currently trade for $45. Is now a lucrative opportunity to buy IonQ stock? Let's find out. Analyzing IonQ's valuation The graph below shows some interesting trends in IonQ's valuation over the last year. For most of 2024, its market capitalization hovered around $1 billion. But following October, there was noticeable valuation expansion in the stock. And while shares exhibited some form of a sell-off earlier this year, they have since rebounded. As of May 23, the company's market cap was sitting at $11.3 billion -- close to all-time highs. IONQ Market Cap data by YCharts. It's important to understand that a company's share price doesn't tell you too much about the underlying value of the business. While the chart above tells investors that IonQ is valued at $11.3 billion, what does that actually mean? For smaller companies that are not yet profitable, a good way to benchmark valuation is by looking at the ratio between market cap and sales. This is called the price-to-sales (P/S) multiple. As of this writing, IonQ's P/S is 231. To put this into perspective, the P/S ratios for Amazon and Cisco during the dot-com bubble peaked in the range between 30 and 40. Moreover, Nvidia's P/S ratio hit a high of around 45 during more bullish periods of the AI bull run. Why is IonQ's stock going parabolic? Generally speaking, when a stock suddenly rises by this order of magnitude, there is some sort of catalyst behind the movement. In IonQ's case, this doesn't really hold up. During the final months of 2024, many of its peers including Rigetti Computing, D-Wave Quantum, and Quantum Computing each experienced similar pronounced rises in share price. Beyond macro tailwinds across smaller quantum computing stocks, another reason shares of IonQ could be rising sharply right now is due to something known as short covering. Shorting a stock is a financial term that means you are betting on the share price to decline. From time to time, short-sellers need to buy shares of a stock they are shorting in order to close out their positions. This is known as a short squeeze, and often leads to higher-than-usual increases in a stock price for a brief period. Per the chart below, IonQ's short interest has been steadily climbing throughout the year. For reference, a short interest of more than 10% is generally considered higher risk. The company's short interest is almost double that benchmark. In my eyes, this price action parallels that of a meme stock and not a prudent investment opportunity. IONQ Percent of Float Short data by YCharts. What I think could happen sooner than later At the end of the first quarter (ended March 31), IonQ held $588 million of cash and short-term investments on its balance sheet. Considering that the company's quarterly burn rate is currently around $30 million, investors might think the business has ample liquidity. IONQ Cash and Short-Term Investments (Quarterly) data by YCharts. I don't necessarily see it that way, though. For starters, quantum computing is far from a commercialized technology. For this reason alone, IonQ's revenue growth is likely going to be both unpredictable and fairly mundane over the next several years, at least. Furthermore, the capital expenditure (capex) and research and development (R&D) costs needed to develop quantum computing is immense. Nvidia, Amazon, Alphabet, and Microsoft are also aggressively investing in this space, so I think IonQ is going to have a hard time keeping up with the competition given its limited financial resources relative to big tech. Now that the stock is trading back near its highs, I suspect the company may issue shares at its current overextended valuation in an effort to raise capital. If management does do this and you buy the stock at current prices, then you will be diluted. While IonQ stock may appear cheap at $45, the company is actually being valued in the tens of billions -- despite ongoing cash burn, little revenue, high short interest, and an intensifying competitive landscape. I would not buy IonQ at its current price, and I suspect shares could be looking at a precipitous sell-off sooner than later. Should you invest $1,000 in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cisco Systems, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
14 hours ago
- Business
- Yahoo
Should You Buy IonQ Stock for Just $45?
IonQ stock might look reasonable at $45, but there is more to the picture when it comes to the company's underlying valuation. It's trading at more than 230 times its trailing-12-month revenue, nearly five times more than peak multiples seen during the dot-com bubble. Given that the stock is near all-time highs, IonQ might decide to issue shares in order to raise capital, making now a dicey time to buy. 10 stocks we like better than IonQ › So far this year, many of the hottest stocks fueling the artificial intelligence (AI) revolution have taken a breather. As of the closing bell on May 23, shares of Nvidia, Amazon, Alphabet, Apple, and Tesla have negative returns on the year. With megacap technology stocks showing some signs of fatigue, where else could growth investors be looking? As far as I can tell, those focused on AI have been looking beyond the "Magnificent Seven" and are redeploying capital into emerging opportunities in this sector. One such area that is fetching quite a bit of attention right now is quantum computing. When it comes to quantum computing stocks, IonQ (NYSE: IONQ) might just be the hottest ticket in town. Shares are up just 9% on the year and currently trade for $45. Is now a lucrative opportunity to buy IonQ stock? Let's find out. The graph below shows some interesting trends in IonQ's valuation over the last year. For most of 2024, its market capitalization hovered around $1 billion. But following October, there was noticeable valuation expansion in the stock. And while shares exhibited some form of a sell-off earlier this year, they have since rebounded. As of May 23, the company's market cap was sitting at $11.3 billion -- close to all-time highs. It's important to understand that a company's share price doesn't tell you too much about the underlying value of the business. While the chart above tells investors that IonQ is valued at $11.3 billion, what does that actually mean? For smaller companies that are not yet profitable, a good way to benchmark valuation is by looking at the ratio between market cap and sales. This is called the price-to-sales (P/S) multiple. As of this writing, IonQ's P/S is 231. To put this into perspective, the P/S ratios for Amazon and Cisco during the dot-com bubble peaked in the range between 30 and 40. Moreover, Nvidia's P/S ratio hit a high of around 45 during more bullish periods of the AI bull run. Generally speaking, when a stock suddenly rises by this order of magnitude, there is some sort of catalyst behind the movement. In IonQ's case, this doesn't really hold up. During the final months of 2024, many of its peers including Rigetti Computing, D-Wave Quantum, and Quantum Computing each experienced similar pronounced rises in share price. Beyond macro tailwinds across smaller quantum computing stocks, another reason shares of IonQ could be rising sharply right now is due to something known as short covering. Shorting a stock is a financial term that means you are betting on the share price to decline. From time to time, short-sellers need to buy shares of a stock they are shorting in order to close out their positions. This is known as a short squeeze, and often leads to higher-than-usual increases in a stock price for a brief period. Per the chart below, IonQ's short interest has been steadily climbing throughout the year. For reference, a short interest of more than 10% is generally considered higher risk. The company's short interest is almost double that benchmark. In my eyes, this price action parallels that of a meme stock and not a prudent investment opportunity. At the end of the first quarter (ended March 31), IonQ held $588 million of cash and short-term investments on its balance sheet. Considering that the company's quarterly burn rate is currently around $30 million, investors might think the business has ample liquidity. I don't necessarily see it that way, though. For starters, quantum computing is far from a commercialized technology. For this reason alone, IonQ's revenue growth is likely going to be both unpredictable and fairly mundane over the next several years, at least. Furthermore, the capital expenditure (capex) and research and development (R&D) costs needed to develop quantum computing is immense. Nvidia, Amazon, Alphabet, and Microsoft are also aggressively investing in this space, so I think IonQ is going to have a hard time keeping up with the competition given its limited financial resources relative to big tech. Now that the stock is trading back near its highs, I suspect the company may issue shares at its current overextended valuation in an effort to raise capital. If management does do this and you buy the stock at current prices, then you will be diluted. While IonQ stock may appear cheap at $45, the company is actually being valued in the tens of billions -- despite ongoing cash burn, little revenue, high short interest, and an intensifying competitive landscape. I would not buy IonQ at its current price, and I suspect shares could be looking at a precipitous sell-off sooner than later. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cisco Systems, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Should You Buy IonQ Stock for Just $45? was originally published by The Motley Fool Sign in to access your portfolio
