Shares of IonQ Inc (IONQ 3.47%) jumped on Friday, finishing the day up 15%.
The quantum computing stock's surge wasn't driven by company-specific developments. Instead, IonQ shares rode a broader tech rally after a punishing week for the sector.
NYSE: IONQ
Key Data Points
Tech rallies after a major sell-off
The Nasdaq Composite had dropped 4.5% over the prior four trading sessions as investors fled tech stocks amid fresh concerns about artificial intelligence (AI) spending sustainability. That reversed course today as investors jumped back in, and the tech-heavy index finished the day up 2.1%.
Image source: Getty Images.
Recent earnings from big tech have renewed AI bubble fears, revealing capital expenditures accelerating to unprecedented levels. Alphabet and Amazon announced they could spend up to $185 billion and $200 billion in capex, respectively, this year. Meta and Microsoft both upped their forecasts considerably, with 2026 targets that nearly double their spends from last year.
Should you buy IonQ?
IonQ has a market capitalization of nearly $13 billion. Its revenue over the last twelve months is $80 million. That's a pretty serious valuation disconnect, and one I am not comfortable with. I think shares of IonQ, along with shares of its quantum pure-play peers, are massively overpriced.
