Should you invest in IonQ right away, given its substantial 479% increase?
IonQ, a leading pure-play quantum computing company, is making waves in the tech industry. With a current market cap of approximately $12 billion, IonQ is trading at $41.80, with a day's range of $40.51 - $42.73 and a 52wk range of $6.54 - $54.74, as of the latest market close.
The company, listed on the NYSE under the ticker symbol IONQ, is known for its use of trapped ion qubits, a technology that delivers more accurate results than rival models. However, it's important to note that the gate processing speeds of IonQ's quantum computers aren't as fast as those of its competitors.
Despite this, IonQ's potential is significant. The company predicts it will have an $87 billion market opportunity by 2035. This optimism is shared by several third-party reports, which suggest that quantum computing could create up to $880 billion in economic value by 2040.
The CEO of IonQ, Niccolo de Masi, expects the company to be profitable by 2030, with sales approaching $1 billion. However, it's worth mentioning that IonQ's only revenues today come from research contracts.
Investing in IonQ comes with its risks. The success of its quantum computing technology is uncertain, making it a risky investment. If an investor decides to buy IonQ's stock, it's advisable to keep their investment relatively small, no more than 1% of their portfolio, to limit potential losses if the investment doesn't pan out.
The Motley Fool Stock Advisor analyst team has revealed the 10 best stocks for investors to buy right now, and IonQ is not one of them. However, it's worth noting that the Motley Fool Stock Advisor's total average return is 1,052%, which is a market-crushing outperformance compared to the S&P 500's 185%.
For those interested in learning more about the Motley Fool Stock Advisor's latest top 10 list, joining Stock Advisor provides access to the information. Meanwhile, the success story of IonQ serves as a testament to the potential of quantum computing and the exciting developments yet to come in this burgeoning field.
