Quantum computing stocks landed on investors' radars late last year when Alphabet announced a huge breakthrough with one of its quantum computing chips. This caused a marketwide rally in quantum computing stocks, sending top picks like IonQ (IONQ +3.63%) and Rigetti Computing through the roof.
However, these stocks suddenly crashed when a prominent voice in the computing industry said that useful quantum computers were still 15 to 30 years away. That comment came from Nvidia CEO Jensen Huang, who has a strong pulse on the computing world.
These are just one man's comments, but they carry significant weight in that world. Does this dip represent a buying opportunity for this exciting technology?
IonQ is a clear leader in quantum computing
A top pick in this space is IonQ. It has made its way to the top of the quantum computing investing list because it holds the largest contract ever given to a quantum computing company. The U.S. Air Force Research Lab selected IonQ as the recipient of a $54.5 million award to build it a quantum computer. These contracts are key for IonQ, as it isn't a profitable business, so it relies on other clients to fund its research.
Some other key partnerships IonQ has are with engineering simulation firm Ansys and drugmaker AstraZeneca. It's critical that IonQ continues to seek out and maintain these relationships; otherwise, it wouldn't be able to fund its research into potentially one of the most transformational technologies we've seen to date.
NYSE: IONQ
Key Data Points
Quantum computing is far more powerful than traditional computing, as it doesn't transmit data in binary bits (1s and 0s). Instead, quantum computing uses qubits, which transmit information as a number between 1 and 0. This allows for a qubit to store infinitely more information than a bit, but it comes at a cost: accuracy. Because information isn't a simple 1 or 0, errors can be introduced into calculations that wouldn't be there if traditional computing methods were used.
This represents one of the key hurdles all quantum computing companies face. However, IonQ has nearly solved this issue and now boasts around 99.9% accuracy with its computing, with far more accurate calculations expected with each passing year. This means we're not far from getting consistently accurate solutions from quantum computers. After that fundamental problem is solved, researchers can start applying quantum computing to useful problems, which is when investors will start to see real value in the company.
Still, with computing industry leaders like Huang stating that useful quantum computing is still years away, it's worth listening to because he knows far more about this technology than most of us ever will. But there is one consideration that investors must weigh.
IonQ's stock is a speculative investment
After Huang made those comments about quantum computing, less than a week later Nvidia announced a quantum day at its GTC 2025 conference. This indicates that quantum computing may be further along than Huang realized (even within his own company). So, taking one CEO's comments about the technology and selling off the stock may not have been smart.
With that in mind, is IonQ stock a buy again?
I'd say it depends. IonQ is still a long way off from selling quantum computers at a profitable level, as quantum computing has yet to be used in a useful way. Furthermore, there are other competitors in the space that have far more resources (like Nvidia and Alphabet), which could make it difficult to compete. However, IonQ is winning these big contracts for a reason, so it's a worthwhile company to consider in this space.
I'd say investors are fine with buying here if they are OK with the massive volatility the stock brings with it. In 2025 alone, the shares have experienced multiple days with large price swings, so investors will need to keep their eyes on the long game. Lastly, any investment in IonQ needs to have the mindset that the stock could go to zero, as it's not a surefire bet. As a result, position sizing should be kept relatively low; that way, it won't affect the overall portfolio too much if it fails. But if it succeeds, it will still produce huge profits.
Quantum computing may be years off, but multiple indications suggest that it could arrive sooner than some think.
