From Yahoo Finance: 2025-05-16 17:45:00

Quantum computing is gaining traction in the AI world, with IonQ seeing its share price surge by over 270% in the past year. Drawing parallels to Palantir Technologies, IonQ is capturing investor interest. Despite potential, IonQ’s $43 million in sales and high market cap raise valuation concerns.

IonQ’s revenue growth trends are notable, attracting major partners like Nvidia, Microsoft, Amazon, and Alphabet. However, with a market cap of $8 billion and a P/S ratio of 165, IonQ’s valuation appears lofty for a company not yet profitable. Concerns about Palantir’s valuation also resonate in the industry.

While Palantir shows promise with consistent revenue growth and positive earnings, IonQ faces stiff competition from tech giants already leading in AI and quantum computing. Investing in IonQ could be risky given the company’s trajectory and market dynamics.

Despite the allure of hot stocks like IonQ, caution is advised. Palantir’s future seems steady, while IonQ faces challenges in a competitive AI landscape. Potential investors should consider established opportunities in the megacap tech sector instead.

Suzanne Frey from Alphabet and John Mackey from Amazon are associated with The Motley Fool. Author Adam Spatacco has positions in various tech companies. The Motley Fool has a disclosure policy. “Could IonQ Be the Next Palantir?” article originally published by The Motley Fool.

Read more: Could IonQ Be the Next Palantir?