Quantum computing stocks have been incredible performers so far this year. And Nvidia (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang’s comments have only reignited a trade that’s even hotter than the AI trade. Even if industry pundits are a tad more optimistic on the quantum timeline, it’s hard to know just how quantum stocks are priced at this juncture. Will the commercialization and profitability boom be in the cards within five years, or will it take a decade or a few decades before quantum makes the leap that entails another technological revolution?
It’s hard to tell when quantum computers will hit an inflection point and which firms will dominate. Also, with a growing number of AI agents and the imminent launch of the much-awaited ChatGPT-5 looming, there’s no shortage of growth and opportunity to be had in the AI stocks, both the obvious ones (think Nvidia or just about any one of the Magnificent Seven names) as well as the hidden beneficiaries (think the names that supply the data centers or the enterprise software firms standing in the shadows of Palantir (NASDAQ:PLTR)), I do think quantum is a real revolutionary technology that’s worth tuning into despite the high risk of being much too soon to the trade.
As it stands, the AI boom seems to be in its prime time, while quantum may be a few years (or more) away. Indeed, the danger of being too early, I believe, is higher than the risk of being too late, given the serious momentum exhibited by the players looking to make a mark on a nascent market.
The AI revolution has arrived. The quantum leap could be next, but it’s tough to time it.
Perhaps following the big money (executives and insider buyers) is a way to go for investors who want to punch their ticket to a firm that has the best tech, and, perhaps most importantly, the talent to become and stay a leader in quantum whenever the field is ready to experience an AI-esque surge. Like the internet boom and bubble burst, however, investors must know what they stand to lose, as it could be every bit as important as how much they stand to gain, especially if one has lost sight of valuation. Personally, I think executive moves a huge vote of confidence that speaks well to the opportunity to be had in a more speculative growth company.
IonQ: Back in March, it was unveiled that a big-name director bought a lot of shares
IonQ (NASDAQ:IONQ) has been one of the hottest quantum stocks in the past year, gaining close to 440% at the time of this writing. The firm’s trapped ion quantum tech may very well offer a glimpse of where the entire field is headed. Additionally, IonQ views itself as a quantum internet company, which entails a far higher growth ceiling than analysts may be forecasting. With an impressive quantum ecosystem in the works and a path to $1 billion revenue “over the next few years,” according to Rosenblatt, perhaps IONQ is the high-upside bet that’s worth the equally-high risks, provided one can build a position over time rather than take a big bite after a sizeable surge.
With very sophisticated and complicated tech underneath the hood, it’s not a mystery as to why traders have piled in on any hint of good news for quantum. With shares dipping 25% off all-time highs, with a concerning technical pattern that could be in the works (in my opinion, a double-top pattern has a chance of forming), investors may wish to prepare to buy incrementally on weakness.
The stock shed over 4% on Friday on a bad day for Wall Street and tech. With Director Bill Scannell buying around $2 million in IONQ shares several months ago, though, perhaps there’s an opportunity as momentum reverses course and euphoria turns to panic. Indeed, I think IONQ is a stellar name to pick up as big tech takes a tumble, especially if IonQ’s looming quarter fails to impress.
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