2023 was the year of artificial intelligence (AI), and early 2024 isn’t much different, so far. Yet, the year is still young and the “next AI” might emerge soon. Consequently, investors should consider their risk tolerance and take a close look at IonQ (NYSE:IONQ) stock.
Just to recap, IonQ specializes in quantum computers. IonQ’s quantum-computing technology is available on popular cloud platforms run by the likes of Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google.
So, if you’re looking for the next AI, quantum computing might be it. And, if you’re on the hunt for the next Nvidia (NASDAQ:NVDA), definitely put IonQ on your radar.
IONQ Stock Chops, Pops and Drops
First and foremost, you’d better have a strong appetite for risk and volatility if you plan to invest in IonQ. Believe it or not, IONQ stock has a 52-week range of $4.26 to $21.60 with plenty of rollercoaster surges and selloffs during the past year.
The stock recently pulled back from $15, so a prime dip-buying opportunity may be afoot. It doesn’t take a lot of technical expertise to understand that IonQ’s market capitalization could grow quickly in a year.
It also doesn’t require expertise to realize that ultra-fast quantum computing could be the next hot topic on Wall Street. People aren’t talking much about quantum computing now, but they also weren’t gushing about AI a few years ago.
Some folks see the potential for hyper-growth, however. For example, Fast Company added IonQ to its third annual Next Big Things in Tech list. Moreover, InvestorPlace contributor Shane Neagle named IONQ as one of the three most undervalued quantum-computing stocks to buy in January.
IonQ is really the only pure, 100% focused quantum-computing specialist on Neagle’s list. So, for pure-play stock exposure to this fascinating, burgeoning industry, investors should mainly focus on IonQ.
Manage Your Expectations With IonQ
During their first years, pioneers aren’t always profiteers. I just made that rhyme up, but it fits IonQ’s situation perfectly.
Quantum computing is an industry in its infancy. Granted, IonQ has already made significant strides in commercializing its quantum computers. For instance, IonQ’s quantum-computing products are available through Amazon’s (NASDAQ:AMZN) AWS (Amazon Web Services) quantum-computing service, known as the Braket Direct program.
Furthermore, IonQ has demonstrated impressive top-line growth, having increased its revenue from $2.763 million in 2022’s third quarter to $6.136 million in the third quarter of 2023. On the other hand, IonQ hasn’t managed to post a profitable quarter. Also, the company’s net earnings loss widened from $23.983 million in Q3 2022 to $44.811 million in Q3 2023.
Consequently, you’ll want to manage your expectations with IonQ. The company might not report a quarterly profit for a while. This may be a deal-breaker for some prospective investors.
IONQ Stock: There Will Be Pain and Gains
You may be highly averse to risk and volatility, or refuse to invest in currently unprofitable businesses. If that’s the case, then you probably shouldn’t be an IonQ shareholder.
Yet, if you can handle the short-term pain and want to enjoy the potential long-term gains, I encourage you to check out IONQ stock. For all I know, quantum computing might be the next AI. If so, then IonQ will be an early leader — and if you invest today, you could be a big winner.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
