Not long ago, I heartily recommended investing in IonQ (NYSE:IONQ). However, I have also pointed to the risks involved, as quantum computing is a still-developing technology. So, share-price volatility should be expected. My IONQ stock forecast is definitely bullish and you can certainly buy it. However, my strategy also recommends buying another stock in order to diversify your holdings.
I understand the enthusiasm surrounding quantum computing. Some financial traders think it might be the next big trend, like artificial intelligence (AI) was in 2023.
Still, I encourage you to temper your enthusiasm with caution, as IonQ isn’t the only quantum-computing firm out there. Indeed, there’s a competitor that’s also worth watching and, possibly, investing in right now.
The Bullish Argument for IONQ Stock
Don’t get the wrong idea. I’m still optimistic about IonQ’s growth prospects. If quantum computing does actually become the “next AI,” IONQ stock will be one of a small number of pure-play assets in this category.
By the way, IonQ isn’t ignoring the AI trend. In fact, IonQ is collaborating with Zapata AI to “benchmark generative AI techniques on quantum hardware.” Hence, IonQ’s investors can get portfolio exposure to both AI and the “next AI” at the same time.
Furthermore, there’s no denying that IonQ is a powerful revenue grower. Specifically, IonQ’s third-quarter 2023 revenue increased 122% year over year (YOY) to $6.1 million. Moreover, the company reported $26.3 million in new bookings for Q3 2023.
As a result, IonQ achieved its objective of “$100 million in cumulative bookings within the first three years of its commercialization efforts.” That’s impressive, but hold your horses as I’m not recommending going all-in on IONQ stock.
Don’t Just Look at IonQ
Why shouldn’t you just load up on IonQ shares? Again, I should emphasize that, comparatively speaking, quantum computing is a market that’s still in its early stages. The volatility risk is real and shouldn’t be overlooked.
Also, IonQ has a strong competitor in the quantum-computing space. In particular, D-Wave Quantum (NYSE:QBTS) is a notable up-and-comer that IONQ stock investors can’t afford to ignore.
As InvestorPlace contributor Ian Cooper pointed out, D-Wave Quantum made an agreement with Deloitte to speed up quantum-computing adoption in Canada’s public and private sectors. In other words, IonQ isn’t the only business making inroads into the global quantum-computing market.
Additionally, D-Wave Quantum is a revenue grower just like IonQ is. Drilling down to the data, D-Wave Quantum’s revenue increased 50% YOY to $2.6 million in the third quarter of 2023. Plus, the company reported Q3 2023 bookings of $2.9 million, up 53% YOY.
Bullish IONQ Stock Forecast: Profit With This and Another Stock
IonQ will certainly benefit if quantum computing becomes the “next AI.” Yet, D-Wave Quantum might steal some of IonQ’s market share. The good news is that you don’t just have to bet on one horse to win the race.
My IONQ stock forecast is that it will go much higher in the long run. However, I recommend de-risking your portfolio somewhat by purchasing both IonQ shares and QBTS stock. That way, you’ll get pure-play exposure to an exciting technology niche market without putting all of your eggs in one company’s basket.
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.
