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Down 30%, Should You Buy the Dip on IonQ?

JB

Jeremy Bowman

The article discusses the rising interest in quantum computing, particularly following the introduction of Google's Willow quantum chip. IonQ, a key player in the sector, has gained attention despite being unprofitable. The company plans to double its revenue and has shown progress with deals like the one with EPB and participation in Nvidia's Quantum Day.

IonQ uses a unique trapped-ion technology to power its quantum computers, available through major providers like Amazon Web Services and Microsoft Azure. Although its stock has dipped from previous highs, the current valuation presents an opportunity for risk-tolerant investors.

Despite its market cap of over $10 billion, IonQ remains a development-stage company with first-quarter revenues of $7.6 million. The company projects significant revenue growth going forward, expecting to reach between $75 million and $95 million by the end of the year.

The article suggests that while the quantum computing sector involves high risk, IonQ's leadership position and anticipated growth might make it a worthwhile investment for those prepared for potential volatility. Advising caution, the piece highlights the inflated valuations following the industry's recent surge in popularity.