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Artificial intelligence (AI) has been the hottest sector on Wall Street for more than two years. And, arguably, quantum computing is now the hottest subsector within AI. So, let’s have a closer look at two quantum computing stocks to watch in 2025.
The first is Ionq (Ionq 0. 94%). When writing those lines, Ionq’s shares have more than 275% in the last 12 months.
It is not necessary to say that this inventory of quantum high flight computing for all. Like many corporations in the field, Ionq has no strong foundations, since it is still in the early stages of its business life cycle. and progression (r
In its most recent quarter (ended Sept. 30, 2024), the company reported only $12.4 million in revenue. Bear in mind, I say ‘only’ because many public companies report well over $1 billion in revenue each quarter. For those companies, $12 million in revenue is like a rounding error.
At any rate, IonQ’s quarterly revenue did increase by 104% year over year, so the company is growing quickly. However, potential investors shouldn’t overlook how small its sales are when compared to other public companies.
Turning to profitability, IonQ reported a net loss of $52.5 million; the company’s quarterly losses amounted to roughly 4x its sales. As for its balance sheet, IonQ has about $365 million in cash on hand and only $18 million in debt. That’s reassuring, as the company’s free cash flow is negative. Over the last 12 months, it has a negative operating cash flow of about $92 million.
None of this that the basic Ionq concepts are unexpected. As a complex business that seeks to expand revolutionary technology, Ionq is largely spending studies and expansion. In the beyond 12 months, the company has paid around $ 30 million according to R&D quarters, logically prioritizing above all.
However, prospective investors perceive that there are dangers to the trading strategy and ownership of their movements. If IonQ’s studies are paid for, and the corporate announces key innovations in quantum IT technology, shareholders can be heavily rewarded. Otherwise, there’s not much to save Impled’s IonQ movements from its existing summits. In other words, IonQ stock is not for every investor or wallet.
Then there is alphabet (Goog 2. 50%) (Googl 2. 56%).
In some respects, the Google Father is guilty of kicking the quantum PC rally. In early December 2024, Google announced that its quantum PC fleece willow had carried out a complex calculation in five minutes. The catch? It would take an existing 10-year-old superpc of septhillones (yes, this is a genuine number) to perform the same calculation.
Obviously, this was a big deal, and hopes soared that practical quantum computing could be much closer than anyone expected. However, there are still major hurdles to overcome when it comes to quantum computing.
For one thing, quantum computers are notoriously error-prone. Because of their design, quantum bits, or qubits, are often unstable. Indeed, chips like Google’s Willow must be kept extremely cold — near absolute zero — to function properly.
Moreover, although the feat of solving Willow challenges impressively, some scientists think that we remain years, if not decades, practical quantum computers that can be used in fields such as medicine or engineering.
In short, quantum computing remains an experimental field for Alphabet. However, that might present an opportunity for investors who would like to have a stake in the quantum computing revolution but also want a more robust business model.
Alphabet is a mature company, which has generated around $340 billion in revenue source in the last 12 months and $94 billion in net profit in the same period. It has various revenue stream resources ranging from cloud computing to video competition to video streaming.
In other words, all alphabet eggs are not in the quantum PC basket. However, if the company makes an advance in the field, a new source of income logo can be unleashed that would make the alphabet even more horny for investors. And that makes the alphabet an inventory of quantum PC convincing to monitor in 2025, and beyond.
Suzanne Frey, director of Alphabet, is a member of the Motley Fool’s Board. Jake Lerch has alphabet positions. The madness of the word has positions and recommends alphabet. The Motley Fool has a dissemination policy.
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