Investors on the hunt for the next great thing, after artificial intelligence, have been focusing their attention this year on quantum computing.
Microsoft Corp. (NASDAQ:MSFT) and IONQ Inc. (NYSE: IONQ) are two names which offer considerable exposure to the quantum computing technology that, according to many experts, could be a catalyst in the stock market for years.
As much as MSFT is the most stable, there are reasons to choose IONQ over Microsoft if you want to be exposed to quantum computing. This is especially true if your risk appetite matches. We’ll explore the reasons.
Which is the best stock to buy?
Microsoft has a gazillion projects in the works, including quantum computing.
The tech giant doesn’t reveal the revenue generated by quantum computing.
The pure-play IONQ is the only one that provides direct exposure to quantum computer. It achieved 99.9% gate fidelity for its barium next-generation development platform in September.
MSFT is a better option than this New York-listed firm, as it pays out a current dividend yield of 0.80%.
IONQ’s stock price has doubled in the last three months. This indicates that it is currently experiencing an explosive phase.
Microsoft is an investment with a more relaxed approach that offers healthy returns over the long term, if not the most voluminous.
Wall Street sees MSFT’s share price rising to an average of $497, which suggests that it could rise another 20%.
IONQ’s revenue more than doubled in the fiscal Q2
IONQ may not be a very profitable stock at the moment, which could make some investors hesitant to build a large position.
Its revenues are growing rapidly.
Late August the New York-listed firm announced $11.4 million sales for the second quarter of its financial year – a 106% rise compared to the same period last year.
The company expects to grow revenue by 73% this year, or $38 millions, compared with $22 in 2023.
Investors can feel more confident about investing in IONQ because the company already works with renowned names such as Oak Ridge National Laboratory, Hyundai and other notable companies.
The Maryland-headquartered firm even has a partnership with Microsoft as well.
Investing in IONQ is a high-risk bet. However, it could also offer lucrative rewards if the company continues to grow rapidly.
By securing a position on IONQ at any possible dip in its price, which may occur in the coming weeks, it won’t be the worst idea.
The following post is titled Is IONQ a better investment than Microsoft to gain exposure to quantum computer? This post may change as new information becomes available
