IonQ (IONQ +1.50%) stock closed out this week's trading with a round of explosive gains. The quantum computing company's share price rose 18.3% in Friday's daily trading session. Meanwhile, the S&P 500 fell 0.1%, and the Nasdaq Composite gained 0.4%.
IonQ's valuation bounded higher today following news that the company's planned acquisition of Oxford Ionics had been approved by the UK Investment Security Unit (ISU). The approval seemingly paves the way for IonQ's purchase of the smaller quantum computing specialist to be completed.
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Is IonQ stock a buy right now?
Quantum computing is a promising technology that could help power huge leaps forward for artificial intelligence (AI) and other potentially revolutionary applications. Within the category, IonQ is a specialized player that has demonstrated some impressive technological progress -- and it could wind up being a massive winner for long-term investors.
NYSE: IONQ
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On the other hand, investors should approach the stock with the knowledge that it is a highly speculative and risky play. Along those lines, it's probably not a great portfolio fit for investors without very high levels of risk tolerance. If the company's tech trajectory faces setbacks, or substantial macroeconomic or geopolitical headwinds were to hit the market, IonQ's highly growth-dependent valuation puts it at risk of facing huge sell-offs.
For those investors with a very high tolerance for risk, IonQ could be a sensible portfolio addition that grants exposure to potentially explosive quantum computing growth trends. But even highly risk-tolerant investors should probably be wary of having the stock account for too much of an investment portfolio given the stock's current valuation levels.
