This is the most promising quantum computing stock ever, but should you buy it now?

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Quantum computing has the potential to accelerate how companies and scientists process data, leading to advanced artificial intelligence, better weather forecasting and medical breakthroughs.

Long-term potential b Shares of quantum computing It’s significant, and McKinsey estimates the market could reach $2 trillion by 2035.

The competition is already heating up as many companies take a unique approach to developing their quantum computers. One such company is. IonQ (NYSE: IONQ)A leading manufacturer of quantum computing systems. But is the stock bought now? Let’s take a closer look.

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One of the things that makes IonQ unique is the way it creates a quantum computer. Instead of using traditional quantum computers that consist of “extremely cold superfine wire or crystalline silicon with artificial defects,” IonQ instead uses trapped ions.

The company says the trapped ions can be used to create chains of linear ions for quantum processors capable of 100+ qubits (the processing unit of quantum computers). The result is a high-powered quantum computer with far fewer errors than the competition.

One of the biggest obstacles to quantum computing is its practical use. However, IonQ is already growing its customer list with the automaker. HyundaiIndustrial equipment company CaterpillarAnd the US military as a customer.

Biopharmaceutical drug discovery and computer-aided simulations for the engineering and manufacturing industries are the company’s two main areas of focus for practical quantum computing applications, IonQ management said in a recent quarterly earnings call. The company has recently announced a new partnership to tap into some of this market potential. AstraZeneca To accelerate innovation in biopharmaceuticals.

IonQ also provides access to some quantum computing via public cloud networks, including Microsoft, AmazonAnd AlphabetAs Google’s interest grows, these partnerships could help advance more practical uses of quantum computing.

Despite the huge potential in quantum computing, I don’t think IonQ’s stock is a buy for most investors right now.

First, quantum computing is highly approximate. Of course, there are some practical applications, but investing in this technology, essentially quantum computing, will one day dramatically change how companies process data. It’s an uncertain market, and trying to pick a winner early seems impossible.

Second, and perhaps most importantly, IonQ’s stock is now expensive. Its shares have a forward price-to-sales ratio of 217. After a more than 250% share price gain over the past 12 months, IonQ stock is trading at a premium. Meanwhile, the income is still moderate, and the losses are high.

In fact, third-quarter revenue more than doubled, and the company even exceeded its revenue guidance of $12 million for the quarter, posting $12.4 million instead. But that figure pales in comparison to IonQ’s net loss of $52.5 million.

While IonQ is making progress by increasing sales and expanding its partnerships, there is still a lot of uncertainty surrounding quantum computing, and the company’s losses are high. Given that we are still in this nascent market, any investment in the pure play of quantum computing is risky.

Instead, investors may want to look at what other tech companies like Alphabet are doing. High gain in quantum computing But they have more financial stability.

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John McKee, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Motley Fool’s board of directors. Alphabet CEO Susan Frey is a member of The Motley Fool’s board of directors. Chris Snow It has no place in the said shares. The Motley Fool has positions and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends AstraZeneca Plc and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has Disclosure Policy.

This is the most promising quantum computing stock ever, but should you buy it now? Originally published by The Motley Fool.