3 Reasons Why IonQ Is the Best Quantum Computing Pure Play

Quantum computing pure-play companies are exciting. These investments have a ton of upside, but that comes with a ton of risk. All of these companies are competing for a market of unknown size and are also having to go up against some big tech companies that have nearly unlimited resources. That's not an easy road for companies to navigate, so investors must be picky about which quantum computing stocks they invest in.

My top quantum computing pure-play stock is IonQ (NYSE: IONQ), as it has several factors that differentiate it from the competition. That could give it an edge, leading to substantial returns if it pans out.

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1. IonQ is taking a different approach to quantum computing

Most quantum computing companies are using a superconducting technique for quantum computing. This approach has its merits, but IonQ is taking a different path. It uses trapped-ion technology, which has a few key advantages over superconducting. First, its accuracy is superior, but we'll get into that in a little bit. Second, it uses lasers to cool particles for quantum computing, rather than cooling an entire chamber. That has major cost advantages, and reducing input costs could be a key factor in its success. Last, its computers can be scaled fairly easily, and IonQ already has a blueprint for building a 10,000-qubit computer.

If IonQ can achieve that, it will likely see strong commercial success, as it considers a computer of that size the threshold for commercial viability. All of this adds up to a stock that could boom if IonQ achieves this buildout, making it a top choice in quantum computing.

2. IonQ holds the world record for the most accurate quantum computer

In some ways, viable quantum computing is already available. However, users don't know whether they can trust the results because most quantum computers exhibit significant errors. A quantum computer uses the movement of particles to perform calculations. It's very easy for background noise to enter the system and mess up the result, which reduces accuracy. IonQ is the current world record holder for quantum computing accuracy, with a system that incurs about one error in every 10,000 calculations.

While that's impressive, IonQ still has a way to go before it's good enough for commercial use. But because it has a major head start on nearly every other company, it's another reason why IonQ is my top pure-play pick.

3. IonQ's revenue growth showcases growing interest

IonQ isn't some obscure quantum computing company; it's gaining popularity each quarter, and its results are starting to reflect that. In Q1, revenue rose 755% year over year. Part of this growth is from acquisitions, but much of it is from new research partnerships and system sales. Remaining performance obligations rose 554% year over year to $470 million, representing a huge backlog that IonQ needs to churn through.

IonQ is just getting started, and there could be several other exciting partnerships, as well as government contracts that could come IonQ's way over the next few years. IonQ will have its work cut out for it to become the top dog in the quantum computing space, but it has a great start versus the competition. I'm a believer in IonQ, but I still don't have all of my eggs in the IonQ basket. There could be a lot that derails IonQ's momentum, and having some exposure to other companies that are pursuing superconducting quantum computing is also a smart idea. It could be five to ten years before quantum computing becomes a mainstream product, so investors will need to stay patient and wait to see how IonQ does over that time frame.

Keithen Drury has positions in IonQ. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.