IonQ's Quantum Breakthrough Can't Compete with Nvidia's Strong Finances
IonQ's recent breakthrough in quantum computing has been met with excitement, but experts are cautioning investors to focus on Nvidia instead.
The company's real-time quantum error decoder is a significant technical milestone, but its shares have still fallen 45% over the past year and are trading at $41.26 after a 12% surge in the last week.
'This they've solved,' said Steve Grasso on CNBC's Fast Money, 'but if you looked at the chart on the rest of these... they're solving it, not the rest of the quantum space.' The market echoed this sentiment, with IonQ's rivals Rigetti Computing and D-Wave Quantum falling in response to the news.
Nvidia, on the other hand, is a $5.45 trillion AI infrastructure company that has seen its shares rise 25% over the past year. The company delivered revenue of $96.22 billion last quarter, with an operating margin of 66.2% and free cash flow of $21.34 billion.
'The ecosystem beneficiary is where the real capital sits,' said Stephanie Link on CNBC's Fast Money. 'You want to own a basket of these names' for direct exposure, but Nvidia is where the real money is being made.'