5 Quantum Computing Stocks That Are Hot Again

1. IonQ, Inc. (NYSE:IONQ)

IonQ, Inc. (NYSE:IONQ) makes general-purpose quantum computers in the US. It then sells access to these quantum computers through its own cloud service as well as that of the major US tech companies. The company’s stock has more than doubled in a year and was quick to recover from the setback of Jensen Huang’s comments in early January.

With the earnings coming up on the 26th of February, the stock could surge again. In the previous quarter, IONQ posted a 100% YoY revenue growth, surpassing the upper end of its guidance. The company’s Q3 revenue of $12.4 million may not be significant and it cannot be denied that the lack of revenue is a big risk. However, the industry is in its early stages and research and development are more important at this stage than the ability to generate revenue.

IONQ is collaborating with AstraZeneca to accelerate the company’s drug discovery processes. A similar collaboration with the US Air Force Research Lab involves working on operating unmanned aerial systems from the ground using quantum computers. The firm’s research is on track and the recent acquisition of Qubitekk adds another 118 patents to the company’s armory, something that will come in handy when quantum computing goes mainstream.

IonQ, Inc. (NYSE:IONQ) is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held IONQ at the end of the third quarter which was 17  in the previous quarter. While we acknowledge the potential of IONQ as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as IONQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.