Quantum computing stocks are still quite hot in the market, although their week-to-week performance can be incredibly volatile. For example, one of the more popular quantum computing plays, Rigetti Computing (NASDAQ: RGTI), set a new all-time high right at the end of 2024, but plunged 70% just a few weeks into 2025. Now, it's only off around 40% from its all-time high. One of its peers, IonQ (NYSE: IONQ), has also seen extreme volatility, although not quite the same level as Rigetti.

Of these two, is one a more attractive stock to buy? Although quantum computing is still a few years away from being widely used commercially, any quantum company could have a breakthrough at a moment's notice, and send shares soaring. That alone is enough to get some investors excited about the stocks, but I think there's one pick that might prevail in this analysis.

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Image source: Getty Images.

Both companies have taken steps to ensure they have adequate cash on hand

Both IonQ and Rigetti are quantum computing start-ups that rely on external funding to continue their operations. Both companies have issued more shares, taken on debt, and received contracts for their work. Basically, any funding source that's outside of actual profitability. Until these companies can prove quantum computing's relevance to everyday problems, they will be in this external funding state, which makes examining cash piles and resource burn critical.

Free cash flow (FCF) is an excellent measure of understanding how much cash is burning each quarter, as it utilizes operating cash flow and subtracts capital expenditures from that figure as well. For unprofitable companies like IonQ and Rigetti Computing, this allows investors to understand how long their current cash pile would last if operations continued in their present state.

IONQ Free Cash Flow (Quarterly) data by YCharts

IonQ has around 16 quarters of cash left, and Rigetti has about 13 quarters left. However, Rigetti Computing is also undergoing a capital raise, as it is issuing enough stock to generate $350 million in additional funds for the company. This will ensure the company's finances and allow it to invest more aggressively in its quantum computing capabilities.

Both companies believe that 2030 will be a turning point for quantum computing. IonQ believes it will be profitable by then, and Rigetti points out that the quantum computing market will dramatically expand in the decade following 2030.

That's still five years away, so is there a clear leader in the quantum computing arms race between the two?

Predicting the future of quantum computing is nearly impossible

Both companies offer full-stack quantum computing solutions, offering everything a potential client would need to run a quantum computer. This includes the hardware and software necessary to run quantum computing workloads. As a result, they are direct competitors with each other. However, these two are also competing against some of the biggest tech behemoths in the world, including Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT). Both Alphabet and Microsoft can afford to invest billions of dollars into quantum computing if they want, and easily outspend or acquire a company like IonQ or Rigetti Computing.

This makes them formidable competitors, and they are ones to keep an eye on as well.

As for IonQ versus Rigetti Computing, it's incredibly difficult to assess whether one is beating the other in the quantum computing arms race. The best way to look at it is which company has the best 2-qubit gate fidelity, which measures how accurate a quantum computer is. IonQ has achieved 99.9% fidelity, while Rigetti Computing is at 99.5%. While that's fractions of a percent better, the amount of work necessary to go from 99.5% to 99.9% is large.

As a result, I think IonQ is likely a better pick than Rigetti. However, both companies are approaching the quantum computing arms race differently, with Rigetti Computing utilizing superconducting technology while IonQ uses trapped ions. There could be a fundamental flaw in either one of these approaches that nobody has discovered, causing every company that's taken that path to immediately fall behind in the quantum computing arms race.

As a result, I think you're better off owning a basket of quantum computing stocks than just picking one or two winners. Over the long term, owning Rigetti, IonQ, Alphabet, and Microsoft will provide better results than throwing a dart and picking a random quantum computing company. We're still far from determining a winner, and there's no guarantee that any of the companies mentioned above will win the race. It could be countless other companies that are also trying to develop a quantum computing solution. Because of that, investors should spread their risk out among multiple picks, as companies like IonQ or Rigetti Computing will likely be worthless if they lose the quantum computing race to someone else.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

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If everyone only invested in what they fully understood, I suspect quite a few stocks wouldn't exist today. We can probably put quantum computing stocks in that category. The quantum physics used by companies pioneering quantum computing can make your head spin.

Fortunately for many investors, quantum computing stocks do exist. Two of them have been especially big winners -- D-Wave Quantum (NYSE: QBTS) and IonQ (NYSE: IONQ). D-Wave Quantum has delivered the more impressive performance over the last 12 months. Is it a better quantum computing stock than IonQ?

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The case for D-Wave Quantum

Despite the market turbulence experienced in 2025, D-Wave Quantum has generated a staggering return of nearly 1,200% over the last 12 months. Even with this tremendous gain, though, the company's market cap remains below $5 billion.

D-Wave's financial performance has been impressive, too. The company's revenue soared 509% year over year in the first quarter of 2025. Its cash position totaled $304.3 million at the end of Q1. D-Wave's management believes that's enough to fund operations until the company achieves profitability.

The huge stock gains and strong revenue growth are the result of increasing interest in D-Wave's technology. The company boasts the world's largest quantum computer. D-Wave recently introduced its most advanced system to date, its sixth-generation Advantage2 quantum computer. CEO Alan Baratz said this new system is "so powerful that it can solve hard problems outside the reach of one of the world's largest exascale GPU-based classical supercomputers."

D-Wave has completed more than 20 proof-of-concept engagements over the last 18 months. Its customer base includes Deloitte, Fort Otosan (a Turkey-based automaker owned by Ford and Koç Holding), Lockheed Martin, and Japan Tobacco).

The case for IonQ

IonQ hasn't delivered the kind of gains that D-Wave has over the last 12 months, but it's nonetheless been sizzling hot. The quantum computing pioneer's stock is up roughly 380%. Thanks to this great return, IonQ's market cap now tops $9 billion.

At first glance, you might wonder about IonQ's growth. The company's revenue dipped slightly year over year in Q1. However, IonQ's revenue has increased by a compound annual growth rate of 170% since 2021. The company expects that 2025 revenue will nearly double year over year based on the midpoint of its guidance range.

IonQ believes that its ion trap architecture gives it distinct competitive advantages. Its quantum computers can operate at room temperature instead of requiring cooling to zero degrees Kelvin. The company thinks its error correction process is superior to rivals. IonQ also maintains that its architecture is more modular and scalable than the competition.

All three of the largest cloud platforms offer IonQ's quantum hardware, a claim no other quantum computing company can make. IonQ has a growing customer base that includes big companies such as Ansys, AstraZeneca, and Toyota Tsusho.

Better quantum computing stock?

Both D-Wave Quantum and IonQ could have tremendous growth potential. Quantum computing could transform many areas, including drug discovery, logistics, and materials science. Consulting firm McKinsey & Co. estimates that quantum computing and networking could create up to $880 billion in economic value by 2040.

However, these two companies also face significant risks. Neither D-Wave nor IonQ is profitable yet. Although their respective technological approaches show promise, the competition is intense, with some rivals possessing much greater financial resources.

If I had to pick one of these quantum computing stocks right now, I'd go with IonQ. It's generating more revenue than D-Wave. Its intellectual property portfolio is larger, with 950 patents related to quantum computing and networking that should soon be under the company's control.

I also like IonQ's business development strategy. Recent acquisitions of ID Quantique and Lightsynq position IonQ well in the quantum networking space.

Investing in IonQ isn't for everyone because of the inherent risks with a small company in a fledgling market. However, I think aggressive investors could see market-beating returns from this stock over the long run.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

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It's been a hard year for investors so far. As of market close on June 5, the S&P 500 and Nasdaq Composite indexes each have breakeven returns on the year. While this makes it incredibly difficult to make money in the stock market, there have been some pockets during which investors made out well if they chose to engage with higher-than-usual volatility.

By now, you may have come across a new acronym floating around financial circles called the "TACO" trade. Below, I'll detail what this means and why it's important.

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From there, I'll dig into one of the new, hot areas fueling the artificial intelligence (AI) narrative: quantum computing.

Could quantum computing stocks be a good way to play the TACO trade? Read on to find out.

What is the TACO trade?

Even though the S&P 500 and Nasdaq are both flat on the year, the image below illustrates that there have been some pronounced dips and sharp rises across both indexes throughout 2025. The catch is that these volatile movements have been incredibly fleeting.

^SPX data by YCharts

The term "TACO trade" is a cheeky acronym that stands for "Trump always chickens out." Basically, whenever the President voiced some tough rhetoric on his new tariff policies, the markets plummeted. However, when he subsequently eases some of the pressure on the tariff talking points, the markets roar again.

In summary, the TACO trade is simply a new version of buying the dip when stock prices become abnormally depressed.

Image source: Getty Images.

Are quantum computing stocks a good buy right now?

Two of the most popular quantum computing stocks in the market right now are IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI). During 2024, shares of IonQ soared by 237% while Rigetti stock climbed by a jaw-dropping 1,450% -- both of which completely dominated the broader market.

This year has been a different story, though. As of closing bell on June 5, shares of IonQ and Rigetti Computing have plummeted by 12% and 28%, respectively.

Given these declines, is now a good opportunity to buy quantum computing stocks?

To answer that question, smart investors understand that valuation needs to be a consideration. Per the chart below, Rigetti Computing and IonQ boast price-to-sales (P/S) ratios that seem incongruent with the company's underlying fundamentals.

RGTI PS Ratio data by YCharts

Looked at another way, IonQ and Rigetti Computing have generated a combined revenue of roughly $50 million over the last 12 months -- all while posting a net loss of $460 million between the two businesses.

Given the nominal sales figures and hemorrhaging losses, it's hard to justify the valuation multiples pictured above.

While Rigetti and IonQ have each been on a monster run from a share price perspective, both of these companies appear to be riding high on a bullish quantum computing narrative. In other words, their trading levels are not rooted in the actual performance of the business but rather in a broader macro viewpoint that quantum computing could be a good opportunity in the long run.

Keep the big picture in focus

The big takeaway here is that even though shares of IonQ and Rigetti are down on the year, their respective valuations make it clear that neither of these companies is a good "buy the dip" candidate. Rather, even with their underperformance throughout the year, each stock remains overvalued.

For these reasons, I would not chase any sell-offs in these quantum computing stocks as the TACO trade continues to evolve. My suspicion is that both IonQ and Rigetti will experience some continued valuation compression, and their share prices could very well keep spiraling downward.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Not for the first time in their relatively brief existences, quantum computing stocks shot well higher in value on Thursday. That wasn't due to any fresh innovation, discovery, or major business move. Rather, it seemed to have more to do with some grand pronouncements by a single quantum company executive.

Nevertheless, as a writer, I can confirm that words have power, and these were powerful enough to lift the sector as a whole. Industry standard-bearers Quantum Computing (NASDAQ: QUBT), Rigetti Computing (NASDAQ: RGTI), and D-Wave Quantum (NYSE: QBTS) all saw their share prices inflate at double-digit rates. The stocks rose a respective 15%, 24%, and 26% on the day.

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The king of quantum?

Those market-moving words came from the leader of one of their peers, IonQ (NYSE: IONQ). That morning, Barron's published an interview with the company's CEO, Niccolo de Masi, in which he waxed extremely bullish about the prospects for his business. This was clearly taken by the article's readers as likely prosperity for the wider quantum space.

Image source: Getty Images.

De Masi is clearly not the shy and publicity-adverse type of corporate leader, as he made a series of grand pronouncements about IonQ.

In his eyes, the company is the quantum sector equivalent of graphics processing unit (GPU) king Nvidia or advanced processor specialist Broadcom. As such, IonQ's ultimate prominence and power will be imitated by businesses hoping to catch some of its magic.

In fact, added the executive, "they have always copied and followed us."

That isn't really accurate, as the varied quantum companies currently traded on the stock market are following different paths to hoped-for success. In IonQ's case, it's a "full-stack" business, aiming to provide hardware, the software that runs on it, and applications for control and access.

In a way, though, Quantum Computing, Rigetti, and D-Wave are followers. IonQ was among the first pure-play quantum companies to become publicly traded. That pedigree is a factor that has helped drive its market cap to over $11 billion at present. That dwarfs its three peers, as the most richly capitalized of the trio -- D-Wave -- is currently valued by investors at under $5.6 billion.

Rivers of red ink

Nevertheless, investors should always be wary of hype, especially when applied to an early-stage industry struggling to get on its financial feet -- like quantum.

While the technology has indisputably immense potential, getting a quantum business to the point where it's efficient and profitable is quite the challenge. None of the prominent quantum companies -- yes, including IonQ -- has yet to stem their often very deep net losses.

There are potentially significant catalysts on the horizon. One that could change the landscape dramatically is Congress's National Quantum Initiative Reauthorization Act.

As the name implies, this would restart a federal program aimed at boosting quantum, with public funding for businesses actively involved in such work. Capital for cash-hungry companies on the cutting-edge of new technologies is almost always scarce; passing the act into law would alleviate that nagging and persistent headache.

I have to emphasize here that such industry-boosting factors are only potential at this point, not reality. And that goes double for any talk of a single quantum company or a clutch of them becoming the new Nvidia or Broadcom.

Both of these successful enterprises are the products of years of patient business development and often heavy research and development expenditure. Neither blasted into the world suddenly as cash-gushing winners.

Spread the wealth

At this point, it's hard to place bets on which quantum company, or companies, will pull ahead with offerings irresistible to customers thirsty for exponential increases in computing power.

Given that, it's probably a good move for quantum bulls to spread out their investments among the leading stocks in the space. I feel all of the aforementioned titles can potentially leverage the technology into robust profits eventually -- and yes, that includes IonQ, all hype and hot air aside.

Should you invest $1,000 in Quantum Computing right now?

Before you buy stock in Quantum Computing, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quantum Computing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Shares of quantum computing company IonQ (NYSE: IONQ) skyrocketed 37% on Thursday, after CEO Niccolo de Masi sat down with Barron's for an interview. During the interview, he outlined a lofty goal for the company, and even said that IonQ would be the "Nvidia" of quantum computing.

However, a mere aspirational comment like that shouldn't put this speculative stock up by this much. Delving into the interview, there really wasn't anything tangible to warrant this kind of stock price increase.

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An Nvidia mention gets you far

As we've seen over the past two years, whenever a stock is compared with Nvidia or has been shown to have received an investment from or partnership with the company, speculators tend to pile in. This happened just last week with respect to newly public "neo-cloud" CoreWeave, which skyrocketed after it was disclosed Nvidia had increased its position in the stock.

However, that can be a double-edged sword. After all, SoundHound AI plunged earlier this year when it was disclosed Nvidia had sold its entire stake in the company. SoundHound's stock hasn't recovered.

In the Barron's interview, De Masi said of the quantum computing industry: "I believe IonQ will be the Nvidia player. There will be other people that copy us and follow us; they have always copied and followed us."

No doubt, IonQ was the first publicly traded quantum stock, with IonQ's strategy focused on early commercialization through its trapped-ion process. Meanwhile, other competitors have taken other approaches they believe will ultimately win out, but may take longer to commercialize.

Later in the interview, de Masi predicted that someone would "pay hundreds of billions of dollars to buy IonQ," because he anticipates a major cloud computing provider will want IonQ's quantum technology in-house as a differentiator.

Given that the company's market cap was only around $8.75 billion heading into today, it's perhaps not surprising the stock is seeing a big surge on those comments.

Image source: Getty Images.

But there's no "there" there -- yet

Investors should be very cautious of any quantum computing stock, and especially of chasing one on a day like today. For all of de Masi's talk, IonQ only generated $7.6 million in revenue last quarter, with a $32.3 million loss.

And for all the "Nvidia" parallels, it's very unclear how big the quantum computing market will be. Furthermore, Nvidia was able to develop its artificial intelligence (AI) GPUs and CUDA software almost completely unchallenged for 15 years, prior to the explosion of AI technology. However, IonQ not only has a slew of start-up competitors, but the large cloud players De Masi references mostly also have their own in-house quantum research as well.

Needless to say, this rally is largely based on hype, and could be driven by meme stock investors trying to force a short squeeze, with about 18% of IonQ's stock sold short. But as we've seen in the past, big surges like this can be fleeting. Quantum commercialization is still years away -- perhaps many years.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Billy Duberstein and/or his clients has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

One of the emerging pockets that's piquing interest in the artificial intelligence (AI) realm right now is quantum computing. While the technology is not widely used today, curious investors seem to have bought into the idea that quantum computing represents the next chapter in the AI narrative.

Among notable players fueling the quantum computing landscape is IonQ (NYSE: IONQ), which has witnessed a 275% rise in its share price over the last 12 months. I think that IonQ's rapid ascent echoes the rise of Palantir Technologies throughout the AI frenzy.

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Could investing in IonQ today be like catching Palantir at the onset of the AI revolution? Read on to find out.

Taking a closer look at IonQ's business

The chart below illustrates IonQ's revenue growth trends over the last several years. I'll admit that the steeping slope of the revenue line is quite impressive. And considering the company has won over the likes of Nvidia, Microsoft, Amazon, and Alphabet as key customers and partners, IonQ's future looks pretty bright.

IONQ Revenue (TTM) data by YCharts

Analyzing IonQ's stock price and valuation

Over the last 12 months, IonQ has only generated $43 million in sales. So even though the company's growth rate looks enormous, this percentage growth is going off a relatively small figure in the grand scheme of things.

Nevertheless, IonQ's market cap currently hovers around $8 billion -- putting the company's price-to-sales (P/S) ratio right around 165. Considering IonQ is still burning cash and not generating meaningful revenue, it's hard to justify such a lofty valuation.

Image source: Getty Images.

Could buying IonQ stock today be like investing in Palantir at the dawn of the AI revolution?

One of the chief concerns surrounding an investment in Palantir is also that the company's valuation has become overextended. Given Palantir's P/S multiple is among the highest across leading enterprise software businesses, I understand these concerns.

PLTR PS Ratio data by YCharts

The caveat I would make is twofold. First, Palantir is already proving that its software platforms are an integral component to AI roadmaps across the public and private sectors. This is underscored by the company's consistent ability to command healthy revenue acceleration and positive earnings. Second, I would not apply too much weight to IonQ's relationships with big tech.

Nvidia already has its own quantum computing platform, called CUDA-Q. Meanwhile, Microsoft, Alphabet, and Amazon have each built their own quantum chips. Given each of these "Magnificent Seven" members are already dominating the AI space and innovating at a rapid pace to enter new markets such as quantum computing, I'm hard-pressed to see how IonQ will compete in the long run -- especially as long as the company remains unprofitable.

At the end of the day, Palantir's future prospects are somewhat predictable given the current trajectory and robust outlook from management suggest that AI-powered software will remain in demand for years to come. For these reasons, some investors can justify Palantir's premium valuation. Given the nascency of quantum computing and the competition IonQ faces, I do not think the same can be said for the company.

While following a hot stock can be entertaining and tempting, oftentimes it's also pretty dangerous. Ultimately, I think IonQ has already experienced its "Palantir moment" and I see pressure on the stock as the more likely outcome going forward. I'd pass on investing in IonQ and opt for more established opportunities in the AI sector across megacap tech.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Cloudflare, CrowdStrike, Datadog, Microsoft, MongoDB, Nvidia, Palantir Technologies, Salesforce, ServiceNow, and Snowflake. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

IonQ (NYSE: IONQ), a provider of quantum computing systems and cloud-based services, went public by merging with a special purpose acquisition company (SPAC) on Oct. 1, 2021. The combined company's stock started trading at $10.60 per share, then endured some wild swings before closing at a record high of $51.07 on Jan. 6, 2025.

At the time, investors were impressed by IonQ's early mover's advantage in the quantum computing market and its rapid growth. President Donald Trump's victory in last November's U.S. election also sparked a buying frenzy in pricier growth stocks.

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Image source: Getty Images.

Yet, IonQ's stock has plunged about 45% since then. The bulls retreated as the Trump Administration's "Liberation Day" tariffs rattled the markets and stoked fears of a recession. It also became increasingly difficult to justify its sky-high valuations. So should investors consider IonQ's pullback to be a buying opportunity, or a grim warning of darker days ahead?

What does IonQ do?

Traditional computers, even those running the fastest CPUs, store their data in binary bits of zeros and ones. Quantum computers store zeros and ones simultaneously in "qubits," so they can process larger amounts of data at a much faster rate.

However, quantum computers are also larger, consume more power, and are much pricier than traditional servers and mainframes. They also make a higher percentage of mistakes. Due to those limitations, they're still mainly used by universities and government agencies for niche research projects, instead of for mainstream computing tasks.

IonQ sells three quantum computers: Its older Aria system, its flagship Forte system, and its data center-oriented Forte Enterprise system. It plans to roll out its fourth system, the Tempo, later this year.

All its systems use a "trapped ion" technology that isolates individual ions (charged atoms) with electromagnetic fields in a vacuum chamber. It claims that this process is more accurate and power-efficient than other competing methods like superconducting qubits and photonic qubits. IonQ also serves up its quantum computing power as a cloud-based service for customers that want to develop quantum applications without installing on-premise systems.

IonQ measures its quantum computing power in algorithmic qubits (AQ). Both versions of Forte reached 36 AQ at the end of 2024. It expects Tempo to achieve 64 AQ by using barium ions instead of ytterbium ions to improve its stability.

That means IonQ remains on track to achieve its ambitious long-term goal of generating 64 AQ in 2025, 256 AQ in 2026, 384 AQ in 2027, and 1,024 AQ in 2028. It also expects its gate fidelity (its error detection rate) to rise from 99.9% in 2024 to 99.95% in 2028 as it rolls out its more advanced systems.

How fast is IonQ growing?

From 2021 to 2024, IonQ's annual revenue surged from $2 million to $43 million. That growth trajectory was impressive, but it still significantly missed its own pre-merger estimates.

Data source: IonQ.

The unexpected departure of its chief science officer, Dr. Chris Monroe, also rattled its investors in late 2023. However, IonQ continued to roll out new systems, sign new government and enterprise contracts, and acquire some of its smaller competitors. It even integrated Nvidia's parallel computing platform CUDA (Compute Unified Device Architecture) into its own quantum systems to support the integration of the chipmaker's AI-oriented GPUs.

From 2024 to 2027, analysts expect IonQ's revenue to grow at a compound annual growth rate (CAGR) of 88% to $290 million. But with a market capitalization of $6.56 billion, IonQ is already valued at 23 times its estimated sales for 2027. It also isn't expected to break even anytime soon.

Should you buy IonQ's stock right now?

The quantum computing market could expand at a CAGR of 28.5% from 2025 to 2035, according to Market Research Future. If IonQ merely matches that growth rate, its revenue could grow from an estimated $85 million in 2025 to $939 million in 2035.

That would be an impressive growth trajectory, but too much of its growth is baked into its current valuations. Even if its stock were cut in half, it would still be considered expensive relative to its growth. That might be why its insiders sold more than twice as many shares as they bought over the past three months, and why 18% of its float was being shorted in mid-April.

IonQ might be worth nibbling on as a speculative play on the nascent quantum computing market, but investors shouldn't assume it won't drop even lower. In short, it's too early to consider its recent pullback to be a great buying opportunity.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

The cutting edge of innovation runs through the rapidly evolving field of quantum computing. This technology promises to solve complex problems at unprecedented speeds, far exceeding the capabilities of classical systems.

Recent breakthroughs from industry leaders IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) have moved concepts of quantum mechanics from theoretical into real-world commercial applications. Quantum computing is already big business, generating rapid growth in what experts predict could represent an annual market valued at upward of $170 billion by 2040.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Let's explore whether IonQ or Rigetti Computing is the better quantum stock right now.

Image source: Getty Images.

The case for IonQ

With a market capitalization of $5.4 billion, IonQ is the largest pure-play quantum computing stock in the market, more than double the size of Rigetti's $2.3 billion valuation.

The company stands out with its unique trapped-ion technology -- holding ions precisely in 3D space using a custom-designed ion trap to leverage electrically charged atoms as qubits, the fundamental unit of information in its quantum system that uses the principles of superposition, entanglement, and inference to process information.

Unlike superconducting qubits used by Rigetti and International Business Machines, which require cooling of the circuits to subfreezing temperatures, IonQ's approach avoids this.

Its architecture tackles a key challenge in quantum systems, where increasing the number of qubits to boost computational power leads to higher error rates and system instability. With the ability to operate at room temperature as a key advantage, IonQ's latest Forte Enterprise system, with 36 algorithmic qubits, is the company's most powerful single core quantum processor and is positioned for scalable, practical quantum solutions.

The financial trends have been impressive. In 2024, IonQ's net revenue reached $43.1 million, up 96% year over year for the period ended Dec. 31.

The company counts on several major customers representing industries that are embracing quantum computers in fields like pharmaceutical drug discovery, logistics optimization, and engineering simulations. IonQ also partnered with major cloud-computing providers such as Microsoft and Amazon to offer quantum computing as a service.

The company is not yet profitable, but IonQ's attraction as an investment is its hypergrowth trajectory. For 2025, it expects revenue to nearly double to $97 million, with management citing strong interest in its rack-mounted, data-center-friendly quantum computers.

Investors convinced IonQ is still in the early stages of a significant long-term opportunity have plenty of reasons to buy and hold the stock for the long run.

The case for Rigetti Computing

Although IonQ's trapped-ion technology may have a near-term commercial advantage, Rigetti Computing positions itself for long-term dominance through its vertically integrated business model that allows it to control everything from chip design and manufacturing to software development and cloud delivery.

The company operates Fab-1, the industry's first dedicated quantum foundry, enabling precise control over its proprietary chip fabrication, which could be a more cost-effective strategy over time. Rigetti's in-house manufacturing and modular architecture enable scalable, high-qubit-count systems, potentially surpassing IonQ's performance.

According to Rigetti, its superconducting qubits achieve ultra-fast gate speeds of 60 to 80 nanoseconds, up to four orders of magnitude faster than ion-based systems, making them ideal for applications requiring rapid quantum operations.

Despite weaker financial momentum, with Rigetti generating just $10.8 million in 2024, the company's latest 84-qubit Ankaa-3 system is expected to accelerate growth. Market optimism in Rigetti's potential is reflected in the 700% stock price gain over the past year, even outperforming IonQ's 250% return over the same period at the time of this writing. With a balance sheet cash position of $217 million as of the last report, Rigetti has the financial flexibility to pursue its strategic objectives.

Investors who believe Rigetti's superconducting quantum technology will evolve into the industry standard may find its stock has plenty of upside potential.

Decision time: IonQ has an edge

IonQ and Rigetti Computing are at the forefront of the transformative quantum computing industry. However, IonQ emerges as the better quantum stock right now, with a more compelling growth outlook.

Amid the challenging economy, I expect the stock to remain volatile, with 2025 being a pivotal year for the company to reaffirm its operational and financial strategy. For investors with a long time horizon, building a small position in IonQ through a dollar-cost averaging strategy can work within a diversified portfolio to mitigate near-term risks.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $629,519!*

Now, it’s worth noting Stock Advisor’s total average return is 829% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, International Business Machines, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Got a little money and a lot of time? Say, 10 years or more? That's perfect. Time is an investor's best friend, and of course, the more capital you've got to deploy, the bigger your potential net return gets. And if you've got at least a decade to work with, you've got time to take a shot on some relatively volatile but potentially revolutionary investment prospects.

With that as the backdrop, here's a rundown of three monster stocks to buy and hold for 10 years, if not longer. Notice that each of them isn't just in a whole new kind of business. They're largely driving the formation of their respective industries.

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Uber Technologies

A decade ago, the idea of connecting a stranger who needed a ride with another stranger willing to give them one (using the driver's own vehicle, no less) didn't just seem unmarketable. It seemed outrageous. As it turns out, however, the ride-hailing business was a brilliant idea driven by a major sociocultural movement that wouldn't become clear until several years later.

In short, people are decreasingly interested in driving or even owning their own automobile. Figures from the Federal Highway Administration indicate that the number of 19-year-olds with a driver's license in the United States has fallen from over 87% in 1983 to under 69% as of 2022. And the difference is even starker the younger the teen. Fewer than 40% of eligible teenagers living in the United States hold a driver's license, for perspective, versus about two-thirds of this group three decades ago.

In a similar vein, a recent survey taken by Deloitte suggests that while only 11% of U.S. residents aged 55 and up would consider giving up their car, 44% of people under the age of 35 would at least be willing to entertain the idea, given their willingness to use other modes of transportation.

Connect the dots. Younger consumers are more comfortable with new ways of doing things. As they age, they'll further normalize this alternate mode of mobility.

Enter Uber Technologies (NYSE: UBER), which dominates the domestic ride-hailing business but has also set up shop overseas where the same growing disinterest in driving and vehicle ownership is evident. Last year's top-line growth of 18% to $44 billion extends a long-standing trend that's expected to persist at this pace for at least a few more years.

Data source: StockAnalysis.com. Chart by author.

However, this growth trend will likely last for longer than just a few more years. Market research outfit Coherent Market Insights believes the global ride-hailing market is set to grow at an annualized pace of 13.5% through 2032. As a market leader, Uber is well-positioned to capture its fair share of this long-term growth. That is why the stock's lethargic performance since early last year is a buying opportunity.

Recursion Pharmaceuticals

Given the strides made by artificial intelligence just within the past few years, most investors would likely agree that it's only a matter of time before AI is being used to create new drugs. What most people might not realize, however, is that it's already happening. A company called Recursion Pharmaceuticals (NASDAQ: RXRX) currently uses such a developmental tool as well as offers it to third-party pharmaceutical companies.

It's called Recursion OS. Like any other ordinary LLM (large language model) AI platform, this one can sift through a massive amount of digital data and then combine contextually relevant information. It can then determine how a new therapeutic molecule might be assembled and then test how it might work as a treatment for a particular disease.

This approach's chief advantages over more conventional forms of drug research are ones you might guess: speed and cost. Whereas traditional pharma R&D work might require several years and hundreds of millions of dollars just to complete a trial that ends in failure, AI-based testing can be virtually completed for a fraction of the cost in a matter of weeks, if not days. This means the pharmaceutical industry can afford to take more swings, even knowing that most of them might end in failure.

Recursion's business is double-barreled, to be clear. Not only is it sharing revenue-bearing access to its platform with third-party drug companies that currently include Roche, Bayer, and Sanofi, but it's also working on some of its own stuff. All told, nearly a dozen drugs conceived and digitally tested within Recursion OS are now in actual, required clinical trials. Others were weeded out before wasting time and money on clinical testing.

That's still just the beginning, however. Global Market Insights expects the AI-powered drug discovery business to grow at an average annual rate of almost 30% between now and 2032. Recursion Pharmaceuticals is currently unprofitable. Given the industrywide tailwind, though, a swing to profitability could easily be in the cards within the next 10 years, catapulting this stock as a result.

IonQ

Finally, add IonQ (NYSE: IONQ) to your list of prospects that could dish out monster-sized returns over the course of the coming decade. You're probably familiar with how traditional computing devices -- like the one you're using right now -- work. A massive amount of digital information is racing around a computer chip, being translated into a form you can see and interact with comfortably.

As impressive as this technology may be, however, this tech's underlying binary code consisting of nothing but digital ones and zeros has actually become a bit limiting. There's a much more powerful option. By using subatomic particles as its basis, a so-called quantum computer can handle a massive amount of data. With quantum computing, in fact, calculations that might take a traditional computer decades to complete can now be done in a matter of minutes.

This speed, of course, has major implications for industries like artificial intelligence, cybersecurity, and even the aforementioned drug discovery, just to name a few.

There is the not-so-small matter of practicality and cost. Such platforms are overkill for everyday web browsing, for instance, while purchasing one for heavy-duty number-crunching could easily cost hundreds of thousands of dollars, if not more. Even just renting cloud-based access to a quantum computer can cost $50 per minute.

For the right purpose, though, plenty of institutions can come up with that kind of money, like the U.S. Air Force, the city of Busan (Korea), and the Applied Research Laboratory for Intelligence and Security (or ARLIS). All three organizations -- along with several others -- are now test-driving IonQ's tech to figure out how to best leverage this powerful new computing option. The company did $43 million worth of business last year, in fact, up 95% from 2023's top line.

But this still only scratches the surface. Precedence Research predicts that the worldwide quantum computing industry will see compound annualized growth of 31% through 2034, making the next 10 years incredibly exciting for one of the (very) few "pure plays" in the business.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy.

Shares of IonQ (NYSE: IONQ) are surging this week. The company's stock had gained 25% over the week as I write this. The strong performance easily outpaced the S&P 500's most chaotic week in years.

A major quantum computing initiative from the Pentagon helped drive the stock higher.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

DARPA program ignites quantum sector

Late last week the U.S. military's Defense Advanced Research Projects Agency (DARPA) announced it had selected 15 companies for its ambitious quantum computing program. The initiative will explore whether it's possible to build a "useful" quantum computer that "can achieve utility-scale operation -- meaning its computational value exceeds its cost" by 2033.

DARPA's efforts were largely responsible for many of the most important technological breakthroughs of the last half-century, like the internet and GPS. The name carries a lot of weight and investors were excited to see IonQ as one of the named participants. The initiative is part of the Department of Defense's push to lead quantum technology and maintain its edge over China.

Further momentum

Just weeks ago, the company announced that IonQ Forte Enterprise, its most recent commissioned quantum computer, is now available to customers globally through Amazon's Amazon Web Services (AWS), as well as the IonQ Quantum Cloud. The move cements IonQ as a leader in the space as it focuses on real-world application of its technology.

Still, Forte Enterprise is a long way from the sort of robust, stable, and commercially viable quantum computer that could prove revolutionary. The technology is in its infancy. The DARPA program proves this as its aim is to achieve viability by 2033. There are years of high spending on R&D with minimal revenue ahead and no guarantees that the technology ever does mature. Investing in quantum computing at this stage comes with quite a bit of risk, but if you understand this and are still interested, IonQ is one of your best choices.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.