IonQ (NYSE:IONQ) stock offers pure-play exposure to the specialized tech niche known as quantum computing.
The stock gets a “B” rating because it’s a fast mover in both directions, and might not be appropriate for all investors. Yet, there’s a lot to like about IonQ in 2023.
In particular, IonQ has connections to the artificial intelligence (AI) market. Moreover, the company’s recently released quarterly results are impressive.
In addition, IonQ is taking proactive steps to develop its operations in Europe. So, let’s get into the details and you can decide if IONQ deserves a place in your portfolio.
Fast Moves Are Normal With IONQ Stock
Here’s an example of what can happen if you invest in a still-emerging technology. On August 16, IonQ shares lost 20% of their value. There didn’t seem to be any company-specific news on that day, but the Nasdaq index was down.
Therefore, it’s not advisable to over-invest in IONQ stock. Be prepared for volatility, but also understand that IonQ has several potential growth catalysts for the long term.
For example, IonQ has connections with the AI market and is making strides in Europe. As we previously explained, IonQ has formed a partnership with The Center of Competence for Quantum and Artificial Intelligence; this is Switzerland’s first quantum computing hub.
IonQ is collaborating with Zapata AI to “benchmark generative AI techniques on quantum hardware.” On top of all that, IonQ has agreed to provide quantum computing services to European management and technology consulting firm BearingPoint.
IonQ’s Outstanding Quarter
Clearly, IonQ has been quite busy lately. IonQ deserves to stop for a moment to celebrate a job well done, as the company reported record bookings in 2023’s second quarter.
IonQ President and CEO Peter Chapman observed that his company marked “record-setting $28 million in bookings” in Q2, “bringing the total to over $32 million in the first half.”
Looking ahead, Chapman declared that IonQ is on its way “to our revised, higher bookings expectations of $49 million to $56 million for the year.”
Also, IonQ generated $5.5 million in second-quarter 2023 revenue. That’s up 111% year over year, and it’s “above the high end of” IonQ’s “previously provided range.”
We should note, however, that IonQ isn’t currently profitable. That fact, along with IONQ stock’s volatility, might be deal-breakers for some prospective investors.
Note the Risks With IONQ Stock
There are always risks associated with emerging technologies, such as quantum computing. Plus, the IonQ can move quickly or even randomly sometimes.
That’s why IONQ stock gets a “B” grade. Still, many investors should still conduct their due diligence on IonQ. The company is making progress in Europe and has connections to the AI market.
Besides, IonQ’s revenue and bookings growth are undeniable. So, consider a small share position in IonQ if you’re ready to accept the risks and the potential rewards of the fast-growing quantum computing industry.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.