By Quantum computing has been the front and centre of the financial debates this year – especially among investors on the lookout for the next big thing after artificial intelligence.
Two names that offer ample exposure to quantum computing that many believe could revolutionise the world as we know it and serve as a long-term catalyst for the equities market in the coming years include Microsoft Corp (NASDAQ: MSFT) and IONQ Inc (NYSE: IONQ).
While MSFT certainly leads in terms of stability, there’s reason to pick IONQ stock over Microsoft for exposure to quantum computing, particularly if you have the appropriate risk-appetite. Let’s explore why.
IONQ stock vs MSFT: which one is the better pick?
Quantum computing is one of the gazillion things that Microsoft is committed to at the moment.
So, the tech titan doesn’t disclose the percentage of revenue it generates from quantum computing.
IONQ, on the other hand, is a pure-play that offers direct exposure to quantum computing. In September, it surpassed 99.9% two-qubit gate fidelity on its next-gen barium development platform.
MSFT has a one-up over this New York listed firm as it currently pays a dividend yield of 0.80%.
But IONQ stock has more than doubled over the past three months, indicating it’s in its explosive phase at writing.
Microsoft, on the other hand, is a relatively laid-back investment that promises healthy albeit not vehement returns for the long-term.
Wall Street currently sees upside in MSFT share price to $497 on average that suggests potential for another 20% gain from here.
IONQ more than doubled its revenue in fiscal Q2
IONQ is not currently a profitable name that may make investors wary of building a sizable position in it.
But it’s revenue sure is growing at an accelerated pace.
In late August, the New York listed firm reported $11.4 million in sales for its second financial quarter – a whopping 106% increase versus the same quarter last year.
More importantly, the company’s management expects that momentum to continue, forecasting $38 million in revenue for this year or 73% higher than $22 million in 2023.
Investors should feel better about investing in IONQ stock also because it is already working with notable names like Oak Ridge National Laboratory and Hyundai.
The Maryland-headquartered firm even has a partnership with Microsoft as well.
All in all, investing in IONQ may be a risky bet, but it may very well offer lucrative returns as well if it continues to grow at a fast pace.
It won’t, therefore, be the worst of ideas to secure a position in IONQ on any dip in its share price that may materialise in the weeks ahead.
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