Future-facing investors should think about buying IonQ (NYSE:IONQ) stock now, especially since it recently dipped, as the recovery is probably right around the corner.
Everybody and his uncle has already piled into artificial intelligence stocks this year. Why not consider what’s coming next in the world of computing?
Headquartered in Maryland, IonQ specializes in quantum computing. This is actually a niche that’s compatible with AI, but also represents an evolution in computing technology.
So, feel free to hold your AI stocks while also adding some IonQ shares to your portfolio for potentially spectacular growth.
IONQ Stock Pulls Back After a Robust Rally
There’s an old saying in the financial markets: trees don’t grow straight to the heavens. In other words, even the best growth stocks can’t just keeping going up.
IONQ is a great example of this, as it recently pulled back from a 52-week high of $20.14 to the $15 area. That’s a 25% drawdown, and it’s only natural, since the stock rallied sharply from $3 and change earlier this year.
This share-price dip represents a terrific opportunity. In the company’s latest investor presentation, IonQ does an excellent job of explaining its value to the shareholders.
With words and visuals, IonQ explains that it’s building smaller and cheaper modular hardware for ultra-powerful computing. IonQ reminds investors it has already launched its best-in-class quantum computer, known as Forte.
Moreover, IonQ reports that it’s working with multiple partners in various world regions to push the envelope of quantum computing. IonQ’s current collaborators include South Korea’s Ministry of Science and ICT as well as Switzerland’s Center of Competence for Quantum and Artificial Intelligence.
A Bookings Boost and Revenue Recharge
Even as IonQ teams up with collaborators on more than one continent to develop game-changing quantum computing technology, some skeptics might wonder whether the company is actually growing its business.
The answer is definitely yes, and there are data points to prove it.
According to IonQ President and CEO Peter Chapman, the company reported “record-setting $28 million in bookings” during 2023’s second quarter. That, Chapman added, brought “the total to over $32 million in the first half.”
Looking ahead, Chapman asserts that IonQ is on track to achieve “revised, higher bookings expectations of $49 million to $56 million” for 2023.
It’s also encouraging to see that IonQ doubled its revenue year over year, from $2.608 million in 2022’s second quarter to $5.515 million in Q2 of 2023.
$20 Will Just Be the Beginning for IONQ Stock
The data indicates that IonQ is raking in the revenue and boosting its bookings. So, forward-looking investors ought to take a look at IonQ before too many traders know about this company.
I’m not saying that you should dump your AI stocks. They could certainly gain value this year, but you can also expand your horizons. In the coming quarters, quantum computing could become just as important as AI.
Additionally, IONQ stock recently pulled back. That’s a buying opportunity, and I fully expect the IonQ share price to return to $20 before moving much higher.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
