{"id":134755,"date":"2025-05-27T02:13:10","date_gmt":"2025-05-27T02:13:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/134755\/"},"modified":"2025-05-27T02:13:10","modified_gmt":"2025-05-27T02:13:10","slug":"meet-the-monster-quantum-computing-stock-that-continues-to-crush-the-market","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/134755\/","title":{"rendered":"Meet the Monster Quantum Computing Stock That Continues to Crush the Market"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Nvidia, Alphabet, Amazon, and Microsoft are each developing quantum computing technologies across chips and software.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">While these developments could provide even further opportunity in the AI race for megacap tech, a smaller company called IonQ is quickly gaining steam.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Shares of IonQ have trounced the S&amp;P 500, Nasdaq Composite, and megacap technology stocks over the last 12 months.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=348aa8d4-3ba5-4413-8672-e773606e8f13&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than IonQ \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than IonQ \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\">When thinking about quantum computing, names such as <strong>Nvidia<\/strong>, <strong>Alphabet<\/strong>, <strong>Microsoft<\/strong>, or <strong>Amazon<\/strong> might come to mind. Each of these companies has developed custom chips and software focused on quantum computing technology &#8212; providing them with even more opportunity to dominate the artificial intelligence (AI) landscape.<\/p>\n<p class=\"yf-1090901\">But what if I told you that over the last year, Nvidia is the only stock in this peer set that has generated a better total return than the <strong>S&amp;P 500<\/strong> and <strong>Nasdaq Composite<\/strong>?<\/p>\n<p class=\"yf-1090901\">Beyond the megacap technology stocks, <strong>IonQ<\/strong> (NYSE: IONQ) has emerged as a budding opportunity in the quantum computing realm. Over the last year, IonQ stock has risen by a staggering 432% &#8212; absolutely crushing the S&amp;P 500 and Nasdaq indexes, which have risen by 11% and 13%, respectively.<\/p>\n<p class=\"yf-1090901\">Is IonQ stock set up to continue beating the market? Read on to find out.<\/p>\n<p class=\"yf-1090901\">It&#8217;s important to understand that when a new megatrend emerges, individual opportunities underneath the broader umbrella tend to follow. What I mean by that is throughout the AI revolution, investors have (for the most part) been following the same subsectors such as enterprise software, cloud computing infrastructure, and semiconductor chips.<\/p>\n<p class=\"yf-1090901\">While quantum computing is an enormous market opportunity, it&#8217;s not exactly scaling at the same pace as chips or software right now. For this reason, I tend to view quantum computing as more of a trendy, new pocket of the AI realm that appears promising but has little traction to prove it.<\/p>\n<p>    <a href=\"https:\/\/ycharts.com\/companies\/IONQ\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"IONQ Chart\" loading=\"eager\" height=\"441\" width=\"720\" class=\"yf-1vr77wf loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/IONQ\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:IONQ;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">IONQ<\/a> data by <a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">YCharts<\/a>      <\/p>\n<p class=\"yf-1090901\">Not even a year ago, IonQ was trading near <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/types-of-stocks\/penny-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ee4161dc-2554-4f79-addd-f3ccadfd6cc0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:penny stock;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">penny stock<\/a> levels. Still, despite a nearly sevenfold rise in its share price, IonQ stock is &#8220;only&#8221; $45. Well, smart investors understand that share price is only one parameter when assessing a company&#8217;s valuation.<\/p>\n<p class=\"yf-1090901\">Let&#8217;s dig into IonQ&#8217;s financial profile to help assess if the stock is overvalued or trading for a reasonable price.<\/p>\n<p>    <img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"A quantum computing chip processing data.\" loading=\"lazy\" height=\"590\" width=\"960\" class=\"yf-1vr77wf loader\"\/> Image source: Getty Images.         <\/p>\n<p class=\"yf-1090901\">Over the last year, IonQ generated $43 million in revenue. Sure, the company&#8217;s sales trajectory might look encouraging, but look at that cash burn. While raking in tens of millions in revenue, IonQ burned through more than $300 million &#8212; and the trend is getting worse!<\/p>\n<p> Story Continues <\/p>\n<p>   <a href=\"https:\/\/ycharts.com\/companies\/IONQ\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"IONQ Revenue (TTM) Chart\" loading=\"lazy\" height=\"553\" width=\"720\" class=\"yf-1vr77wf loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/IONQ\/revenues_ttm\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:IONQ Revenue (TTM);elm:context_link;itc:0;sec:content-canvas\" class=\"link \">IONQ Revenue (TTM)<\/a> data by <a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">YCharts<\/a>    <\/p>\n<p class=\"yf-1090901\">Despite this inverse relationship between sales and profits, IonQ&#8217;s market cap has continued to soar. At an $11.7 billion market capitalization, IonQ currently trades for a price-to-sales (P\/S) multiple of 238. That is almost tenfold the P\/S ratio of Nvidia.<\/p>\n<p class=\"yf-1090901\">I think IonQ is a speculative stock to own and its <a href=\"https:\/\/www.fool.com\/investing\/2025\/01\/04\/quantum-computing-will-be-the-biggest-ai-theme\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ee4161dc-2554-4f79-addd-f3ccadfd6cc0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:valuation seems unjustified;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">valuation seems unjustified<\/a> to me. While the stock has outperformed the broader market over the last year, I suspect much of the rise in the share price has to do with optimistic narratives surrounding quantum computing coupled with investor fatigue in the usual suspects (i.e., the &#8220;Magnificent Seven&#8221;).<\/p>\n<p class=\"yf-1090901\">While I&#8217;m intrigued by quantum computing, it&#8217;s not an area that&#8217;s enticed me enough to follow the momentum currently fueling IonQ stock to new highs. Instead, owning stocks such as Nvidia, Amazon, Microsoft, Alphabet, or even <strong>IBM<\/strong>\u00a0can provide investors with exposure to quantum computing while also achieving some level of insulation since you will be diversified in other areas of the broader AI market, too.<\/p>\n<p class=\"yf-1090901\">I would pass on IonQ stock right now. Given its parabolic rise in such a short time frame, I think it&#8217;s more likely the stock will take a breather rather than continue crushing the market.<\/p>\n<p class=\"yf-1090901\">Before you buy stock in IonQ, consider this:<\/p>\n<p class=\"yf-1090901\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2efade95-1bce-45cf-81fd-c7f175c0b893&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D17500&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ee4161dc-2554-4f79-addd-f3ccadfd6cc0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and IonQ wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1090901\"><strong>Consider when\u00a0<strong>Netflix<\/strong>\u00a0made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $639,271<\/strong>!*\u00a0<\/strong><strong>Or\u00a0when\u00a0<strong>Nvidia<\/strong>\u00a0made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $804,688<\/strong>!*<\/strong><\/p>\n<p class=\"yf-1090901\"><strong>Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is\u00a0957% \u2014 a market-crushing outperformance compared to\u00a0167%\u00a0for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join\u00a0Stock Advisor.<\/strong><\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2efade95-1bce-45cf-81fd-c7f175c0b893&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17500%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DIonQ&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ee4161dc-2554-4f79-addd-f3ccadfd6cc0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-1090901\">*Stock Advisor returns as of May 19, 2025<\/p>\n<p class=\"yf-1090901\">Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool\u2019s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool\u2019s board of directors. <a href=\"https:\/\/www.fool.com\/author\/20479\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Adam Spatacco;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Adam Spatacco<\/a> has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, Microsoft, and Nvidia. 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 <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/investing\/2025\/05\/26\/meet-the-monster-quantum-computing-stock-that-cont\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Meet the Monster Quantum Computing Stock That Continues to Crush the Market;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Meet the Monster Quantum Computing Stock That Continues to Crush the Market<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia, Alphabet, Amazon, and Microsoft are each developing quantum computing technologies across chips and software. While these developments&hellip;\n","protected":false},"author":2,"featured_media":134756,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[51,3774,19933,2441,3742,3359,11255,3358,16,15],"class_list":{"0":"post-134755","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-ionq","10":"tag-market-opportunity","11":"tag-markets","12":"tag-nasdaq-composite","13":"tag-nvidia","14":"tag-penny-stock","15":"tag-quantum-computing","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114577382200149782","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/134755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=134755"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/134755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/134756"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=134755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=134755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=134755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}