Is IonQ, Inc. (IONQ) Hot Again?

We recently published a list of 5 Quantum Computing Stocks That Are Hot Again. In this article, we are going to take a look at where IonQ, Inc. (NYSE:IONQ) stands against other quantum computing stocks that are hot again.

When Jensen Huang’s comments about useful quantum computing being at least 15 years away tanked most of the quantum stocks, one person must have secretly chuckled. The man in charge of the largest software company in the world, Satya Nadella, may have been the right person to ask that question. His firm has just revealed a new quantum chip, one that uses a superconductor that is neither solid, liquid, or gas! It is a new state of matter altogether!

The new quantum chip is called the Majorana 1 and it can significantly speed up the quantum processes to solve problems in years rather than decades. Chetan Nayak, a technical fellow at the Windows maker had this to say about the development:

Whatever you’re doing in the quantum space needs to have a path to a million qubits. If it doesn’t, you’re going to hit a wall before you get to the scale at which you can solve the really important problems that motivate us. We have actually worked out a path to a million.

As a result of this revelation, quantum computing stocks are surging again. If you missed the last rally, you may still have ample time to get back in. Here is our list of 5 quantum computing stocks that are hot again. To come up with this list, we only considered stocks that have a market cap of at least $500 million.

A quantum computer on a countertop in an engineering laboratory with a technician at work.

IonQ, Inc. (NYSE:IONQ)

IonQ, Inc. (NYSE:IONQ) makes general-purpose quantum computers in the US. It then sells access to these quantum computers through its own cloud service as well as that of the major US tech companies. The company’s stock has more than doubled in a year and was quick to recover from the setback of Jensen Huang’s comments in early January.

With the earnings coming up on the 26th of February, the stock could surge again. In the previous quarter, IONQ posted a 100% YoY revenue growth, surpassing the upper end of its guidance. The company’s Q3 revenue of $12.4 million may not be significant and it cannot be denied that the lack of revenue is a big risk. However, the industry is in its early stages and research and development are more important at this stage than the ability to generate revenue.

IONQ is collaborating with AstraZeneca to accelerate the company’s drug discovery processes. A similar collaboration with the US Air Force Research Lab involves working on operating unmanned aerial systems from the ground using quantum computers. The firm’s research is on track and the recent acquisition of Qubitekk adds another 118 patents to the company’s armory, something that will come in handy when quantum computing goes mainstream.

IonQ, Inc. (NYSE:IONQ) is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held IONQ at the end of the third quarter which was 17  in the previous quarter.

Overall, IONQ ranks 1st on our list of quantum computing stocks that are hot again. While we acknowledge the potential of IONQ as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as IONQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.