Source: Amin Van / Shutterstock.com
Quantum computing is seen as the next stage of computing and IonQ (NASDAQ:IONQ) rode that wave to huge gains in 2023. But the reality of where the market is at in its life cycle is bringing shares down to earth. This will have important implications for IONQ stock moving forward.
After surging 259% last year IONQ stock is down 13% year to date and 50% below its 52-week high hit last summer. Thats undoubtedly because quantum computing hasnt even learned to walk yet let alone get up to the running stage IonQs stock suggests it should be at. There are no real practical uses yet for the current phase of the technology, the hardware isnt up to speed, and there are a lot of problems with the technology. Other than that everything is great!
The following are the primary reasons investors should take a go-slow approach before investing in IONQ stock.
The promise of quantum computing is like the 4-D chess of computing. Where traditional computers break data into very two-dimensional 1s and 0s, quantum computers use quantum bits, or qubits, which put those digits into superposition. That means they can be a 1, a 0, or both at the same time. Or they can be an infinite number of possibilities in between. They also possess a property called entanglement, which is like superposition on steroids. The qubits can communicate and cooperate, expanding their possible permutations.
Quantum computers can take all that data and explore the numerous complex patterns of probability occurring to determine the probability of any particular outcome happening. It allows quantum computers to determine all potential outcomes simultaneously.
Yeah, my brain is just cramped writing that, but quantum computing has many possible real-world uses. For example, it could determine the optimal route to take for a delivery truck or design new drugs. They could also be used to hack supposedly secure encryption data. Theres a very dark side to their usage to go along with the light. The only problem is theyre not very good at what they do yet.
While IonQ and others make quantum computers, the devices cant make the hyperscale calculations their potential says they can. A regular computer is often better at it right now. Nor are they any faster than classic computers. Quantum computers might be slower depending on the calculation.
Its going to take a lot more development to make quantum computing a reality and thats why IONQ stock is falling.
Even though there are use cases for quantum computers, they are not practical enough for businesses to adopt them yet. IonQ makes access to its quantum computers available on the cloud computing platforms of Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabets (NASDAQ:GOOG)(NASDAQ:GOOGL) Google. Year-to-date revenue, though, is less than $16 million. While thats more than double the year-ago figure, it speaks to a very small, limited market.
There are other limiting factors for quantum computers too, including the fact they are prone to errors. Because of their sensitivity, qubits can make substantial errors due to environmental disturbances, even very small ones. Its called decoherence and it causes the qubits to lose their quantum capabilities.
IonQ has a workaround for the problem in development. It believes error mitigation rather than error correction using trapped ions will allow it to resolve issues faster. It says error mitigation will allow it to reach #AQ 64 status, which is where regular computers can no longer fully simulate an IonQ computer. That will make quantum computers more valuable.
When that happens IonQ says it will be a watershed for quantum computing the way ChatGPT was for artificial intelligence. CEO Peter Chapman told industry site HPC Wire, My guess is that just like ChatGPT, the world will be like a baseball bat to their head, like, Oh, my God quantum is here and why did I miss it?
Perhaps, but there is still a long way to go before we get there. In the meantime, IONQ stock will undoubtedly be volatile and investors should step gingerly if theyre thinking about buying in.
On the date of publication, Rich Duprey did not hold (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.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, LExpress, and numerous other news outlets.
Go here to read the rest:
Why IONQ Is Not a Stock to Buy (Yet) - InvestorPlace
- D-Wave Introduces New Fast Anneal Feature, Extending Quantum Computing Performance Gains - Yahoo Finance - April 20th, 2024 [April 20th, 2024]
- Major First: Quantum Information Produced, Stored, And Retrieved - ScienceAlert - April 20th, 2024 [April 20th, 2024]
- Horizon Quantum Computing to Establish First-of-a-Kind Hardware Testbed - The Quantum Insider - April 20th, 2024 [April 20th, 2024]
- Quantum Cloud Computing Secured in New Breakthrough at Oxford - TechRepublic - April 20th, 2024 [April 20th, 2024]
- Quantum Computing Could be the Next Revolution - Fair Observer - April 20th, 2024 [April 20th, 2024]
- Horizon Quantum Computing to Pioneer Multi-Vendor Quantum Hardware Testbed - HPCwire - April 20th, 2024 [April 20th, 2024]
- These 10 quantum computing companies have pulled in the most VC cash - PitchBook News & Analysis - April 20th, 2024 [April 20th, 2024]
- D-Wave Launches Fast Anneal Feature for Enhanced Quantum Computing Performance - Quantum Computing Report - April 20th, 2024 [April 20th, 2024]
- Software Specialist Horizon Quantum to Build First-of-a-Kind Hardware Testbed - HPCwire - April 20th, 2024 [April 20th, 2024]
- Illuminating Futures: Celebrating Achievements and Exploring Quantum Computing at This is IT! Event - Royal Examiner - April 20th, 2024 [April 20th, 2024]
- Horizon Quantum Computing to Establish First-of-a-Kind Hardware Testbed - The Bakersfield Californian - April 20th, 2024 [April 20th, 2024]
- A Weakness in One of the NIST PQC Algorithms Was Not Uncovered After All - Quantum Computing Report - April 20th, 2024 [April 20th, 2024]
- Commodore 64 claimed to outperform IBM's quantum system sarcastic researchers say 1 MHz computer is faster ... - Tom's Hardware - April 20th, 2024 [April 20th, 2024]
- Quantum computing: a new frontier for the broadcast and media industry - RedShark News - April 20th, 2024 [April 20th, 2024]
- 3 Steps Businesses Should Take to Prepare for Quantum Computing Disruption - TechSpective - April 20th, 2024 [April 20th, 2024]
- Orientum Publishes 'Quantum Finance Algorithm' Paper on ArXiv - The Quantum Insider - April 20th, 2024 [April 20th, 2024]
- Quantum Linear Solvers for Redundant Baseline Calibration - AZoQuantum - April 20th, 2024 [April 20th, 2024]
- 'Almost very close' to nuclear weapon: Federal cyber officials brace for quantum computing surprise - Washington Times - April 20th, 2024 [April 20th, 2024]
- D-Wave fast anneal extends quantum computing performance ... - eeNews Europe - April 20th, 2024 [April 20th, 2024]
- Horizon Quantum Computing to Set Up Its Own Hardware Testbed for Tight Integration Between the Hardware and Software Stacks - Quantum Computing Report - April 20th, 2024 [April 20th, 2024]
- Global Quantum Technology Market Research 2024-2029 with Assessment of Companies Focused on Quantum ... - Daily Host News - April 20th, 2024 [April 20th, 2024]
- The experimental demonstration of a verifiable blind quantum computing protocol - Phys.org - April 20th, 2024 [April 20th, 2024]
- Researchers create 'quantum drums' to store qubits one step closer to groundbreaking internet speed and security - Tom's Hardware - April 20th, 2024 [April 20th, 2024]
- Access to burgeoning quantum technology field could be widened by educational model - Phys.org - April 20th, 2024 [April 20th, 2024]
- 'Quantum memory' could make the internet super fast and secure - Futurity: Research News - April 20th, 2024 [April 20th, 2024]
- Senate bill aims to bring more private sector participation to federal AI innovation - Nextgov/FCW - April 20th, 2024 [April 20th, 2024]
- Quantum Computing Leaps Forward with Groundbreaking Error Correction - yTech - April 4th, 2024 [April 4th, 2024]
- Microsoft and Quantinuum Pave the Way for Reliable Quantum Computing - yTech - April 4th, 2024 [April 4th, 2024]
- Breakthrough in Quantum Information Communication Achieved by Tokyo Researchers - yTech - April 4th, 2024 [April 4th, 2024]
- Microsoft Advances in Quantum Computing with Error-Reduction Breakthrough - yTech - April 4th, 2024 [April 4th, 2024]
- Quantinuum H2 Paves the Way for Reliable Quantum Computing - yTech - April 4th, 2024 [April 4th, 2024]
- Why Quantum Computers Will Never Break Bitcoin - Palm Beach Research Group - April 4th, 2024 [April 4th, 2024]
- Microsoft and Quantinuum boast quantum computing breakthrough - DIGIT.FYI - April 4th, 2024 [April 4th, 2024]
- Microsoft and Quantinuum announce breakthrough in quantum computing 14 thousand experiments without errors - ITC - April 4th, 2024 [April 4th, 2024]
- Revolutionizing Quantum Computing: Breakthroughs in Quantum Error Correction - AZoQuantum - April 4th, 2024 [April 4th, 2024]
- Quantum Computing Recharged With Electromagnetic Ion Trap Innovation - SciTechDaily - April 4th, 2024 [April 4th, 2024]
- Next-Generation Quantum Leap Achieved by Microsoft and Quantinuum - yTech - April 4th, 2024 [April 4th, 2024]
- Microsoft and Quantinuum announce development of next-generation technology that reduces 'noise' by 800 times ... - GIGAZINE - April 4th, 2024 [April 4th, 2024]
- BTQ Technologies Corp. Partners with the Australian Quantum Software Network to Advance Quantum Computing and ... - PR Newswire - April 4th, 2024 [April 4th, 2024]
- Quantinuum and Microsoft Leap towards Quantum Superiority with Noise Reduction Breakthrough - yTech - April 4th, 2024 [April 4th, 2024]
- The 3 Best Quantum Computing Stocks to Buy in Q2 2024 - InvestorPlace - April 4th, 2024 [April 4th, 2024]
- What Are the Implications of Quantum Computing for the Future of Data Security? - socPub - April 4th, 2024 [April 4th, 2024]
- Cosmic rays, XR, and 'multiverse' quantum computing welcome to EIC's deeptech Scaling Club - TNW - April 4th, 2024 [April 4th, 2024]
- Wall Street Favorites: 3 Quantum Computing Stocks with Strong Buy Ratings for February 2024 - InvestorPlace - February 26th, 2024 [February 26th, 2024]
- Never-Repeating Tiles Can Safeguard Quantum Information - Quanta Magazine - February 26th, 2024 [February 26th, 2024]
- Fractional Electrons: MIT's New Graphene Breakthrough Is Shaping the Future of Quantum Computing - SciTechDaily - February 26th, 2024 [February 26th, 2024]
- Qubits are notoriously prone to failure but building them from a single laser pulse may change this - Livescience.com - February 26th, 2024 [February 26th, 2024]
- New Phase of Matter Created During Experiments with Exotic Particles in Quantum Processor - The Debrief - February 26th, 2024 [February 26th, 2024]
- Harnessing the Power of Neutrality: Comparing Neutral-Atom Quantum Computing With Other Modalities - The Quantum Insider - February 26th, 2024 [February 26th, 2024]
- Apple is already defending iMessage against tomorrow's quantum computing attacks - The Verge - February 26th, 2024 [February 26th, 2024]
- Government of Canada Supports Xanadu to Accelerate Quantum Computing Research and Education - HPCwire - February 26th, 2024 [February 26th, 2024]
- U.S. weighs National Quantum Initiative Reauthorization Act - TechTarget - February 26th, 2024 [February 26th, 2024]
- The Current State of Quantum Computing - Securities.io - February 26th, 2024 [February 26th, 2024]
- Superconducting qubit promises breakthrough in quantum computing - Advanced Science News - February 26th, 2024 [February 26th, 2024]
- Quantum Computing Breakthrough: New Fusion of Materials Has All the Components Required for a Unique Type of ... - SciTechDaily - February 26th, 2024 [February 26th, 2024]
- 3 Quantum Computing Stocks That Could Be Multibaggers in the Making: February Edition - InvestorPlace - February 26th, 2024 [February 26th, 2024]
- DCD Podcast - The fundamentals of quantum computing, with Yuval Boger, QuEra - DCD - DatacenterDynamics - February 26th, 2024 [February 26th, 2024]
- Apple to launch PQ3 update for iMessage, bolstering encryption against quantum computing - ReadWrite - February 26th, 2024 [February 26th, 2024]
- Illinois governor's proposed $53B budget includes funds for migrants, quantum computing and schools - The Associated Press - February 26th, 2024 [February 26th, 2024]
- How is Quantum Technology Developing in Ireland? A Conversation with John Durcan, IDA Ireland - AZoQuantum - February 26th, 2024 [February 26th, 2024]
- Quantum Poker: The States of Colorado and Illinois are Betting on Quantum - Quantum Computing Report - February 26th, 2024 [February 26th, 2024]
- One of those transformational investments: $15M brings quantum computing to SC - WIS News 10 - February 26th, 2024 [February 26th, 2024]
- Apple is future-proofing iMessage with post-quantum cryptography - Cointelegraph - February 26th, 2024 [February 26th, 2024]
- Singapore warns banks to prepare for quantum computing cyber threat - Finextra - February 26th, 2024 [February 26th, 2024]
- New Superconducting Flowermon Superconducting Qubit Designed to Greatly Increase Coherence Times - Quantum Computing Report - February 26th, 2024 [February 26th, 2024]
- Apple Ramps Up iMessage Security to Fight Looming Quantum Computing Threat - PCMag - February 26th, 2024 [February 26th, 2024]
- IONQ Stock Outlook: Why This Quantum Computing Play Could Be a Long-Term Winner - InvestorPlace - February 26th, 2024 [February 26th, 2024]
- Apple future-proofing iMessage to protect against the scary future of quantum computing hacking - TechRadar - February 26th, 2024 [February 26th, 2024]
- Apple to upgrade iMessage with measures against future quantum computing hacking - The Indian Express - February 26th, 2024 [February 26th, 2024]
- FedDev Ontario invests $17 million in 12 companies to advance quantum computing - IT World Canada - February 26th, 2024 [February 26th, 2024]
- Apple Bolsters iMessage Encryption Amid Quantum Computing Threats - Telecom Lead - February 26th, 2024 [February 26th, 2024]
- The 3 Most Undervalued Quantum Computing Stocks to Buy in January - InvestorPlace - January 21st, 2024 [January 21st, 2024]
- The Week's 10 Biggest Funding Rounds: Quantinuum And Flexport Lock Up Huge Rounds - Crunchbase News - January 21st, 2024 [January 21st, 2024]
- US users top list after Chinas state-of-the-art quantum computer goes global - South China Morning Post - January 21st, 2024 [January 21st, 2024]
- Mitsui to invest in Quantinuum, a leading global quantum computing company, and sign a distributorship agreement for ... - Mitsui - January 21st, 2024 [January 21st, 2024]
- Breakthrough in quantum computing with stable room temperature qubits - Advanced Science News - January 21st, 2024 [January 21st, 2024]
- Davos and the global state of quantum - POLITICO - January 21st, 2024 [January 21st, 2024]
- High-Frequency Transactions: Collaborating with Quantum AI? Features Film Threat - Film Threat - January 21st, 2024 [January 21st, 2024]
- Quantum Computing: Revolution on the Horizon? | by Shan | Jan, 2024 - Medium - January 21st, 2024 [January 21st, 2024]
- Quantum Computing: An Emerging Threat to Cybersecurity - Medriva - January 21st, 2024 [January 21st, 2024]