Should Investors Choose IonQ Over a More Established Quantum Computing Stock?

As investors look for opportunities in tech, many have turned to quantum computing. Amid the industry's growth, start-up companies such as IonQ (NYSE: IONQ) have come about to fill specific market niches.

Moreover, quantum has long attracted established tech companies like IBM and Google parent Alphabet. Unlike IonQ, these companies offer investors profits and stability, greatly lowering the risks for investors.

Still, they only derive a relatively small percentage of their revenue from quantum computing and would likely grow at a slower pace than IonQ. Knowing that, IonQ investors have to ask whether buying the pure-play quantum computing stock is worth the risk.

Image source: The Motley Fool.

IonQ's competitive advantages

IonQ has stood out in its industry for its innovation. For one, quantum bits, often called qubits, can process data exponentially faster than traditional computer bits, but are highly error-prone. IonQ addresses this through trapped ions, which tend to have lower error rates than the superconducting qubits used by IBM and Google.

Moreover, trapped ions offer all-to-all connectivity. Thus, instead of only communicating with neighboring qubits, as is often the case, it allows for direct communication with any qubit within an ecosystem, greatly reducing overhead.

Furthermore, IonQ focuses on connecting quantum processors instead of merely trying to make processors larger. The company says that this could help systems scale better and avoid bottlenecks, and indeed, such innovations could turn IonQ into an industry powerhouse that greatly enriches its shareholders.

Financial challenges

Unfortunately, IonQ's financials remain challenged. Indeed, revenue in the first quarter of 2026 was $65 million, well above the $8 million in the year-ago quarter. Nonetheless, due to its $272 million operating loss in the quarter, IonQ is on track to continue bleeding cash.

IonQ has $2 billion in liquidity, so it has time. Still, given its operating losses, it may have to issue more shares or debt in the foreseeable future.

For now, the stock sells at around 97 times sales, while the S&P 500 average sales multiple is just 3.7. Additionally, at a forward P/S ratio of 79, investors may not be able to count on growth to moderate this valuation quickly.

Also, when compared to IBM or Alphabet, one can see IonQ's risks firsthand. Admittedly, IBM's 9% revenue growth in Q1 or even Alphabet's 22% increase may seem lackluster in comparison.

Still, IBM sells at a P/S ratio of just over 3, while Alphabet sells for less than 11 times sales. With those valuations, investors may choose to trade quantum purity and massive growth for lower risks and more stability.

Should investors buy IonQ stock?

Most investors should evaluate IonQ stock based on their risk tolerance.

If one has a high risk tolerance and money to bet on speculative investments, IonQ may be worth the risk, as many investors believe that it could be the best quantum computing pure play.

However, IonQ is far from a guaranteed success story, while IBM and Alphabet will probably continue to succeed regardless of what happens with their quantum computing businesses. Thus, risk-averse investors are likely better off passing on IonQ in favor of more stable tech giants.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and IonQ. The Motley Fool has a disclosure policy.