Should You Buy IonQ Stock Dip?

Quantum stocks, including IonQ (IONQ), have fallen sharply in recent days as a number of factors, including disappointment in Microsoft’s (MSFT) quarterly results, have made the Street averse to subprime stocks in general and subprime tech names in particular.
IONQ has great potential. But because the decline of subprime tech names appears poised to continue in the near term and quantum computing is still in its early stages, I wouldn’t recommend investors buy IONQ stock right now.
Also making me cautious about IONQ is the fact that its valuation is still quite stratospheric despite its recent share price decline.

IonQ produces and markets quantum technologies, including quantum computers and related software. In recent months, it has made multiple acquisitions, including Seed Innovation, which has “expertise in machine learning (ML), advanced software architecture, and cloud migration,” according to IonQ. In November, the quantum computing company revealed that it had agreed to buy Skywater Technology for about $1.8 billion in cash and stock. SkyWater, which has multiple chip factories and customers in the aerospace and industrial sectors, is expected to allow IonQ to launch its next products more quickly. Additionally, the quantum company hopes to sell its offering to SkyWater customers.

Current IonQ customers include Microsoft (MSFT), Alphabet (GOOG) (GOOGL), Airbus, Hyundai, the National Center for Quantum Computing, and Los Alamos National Laboratory.

In the third quarter of 2025, the company’s revenue increased to $39.87 million, up 92.7% from the same period last year. However, its net loss soared to $1.05 billion from $52.5 million in the third quarter of 2024.

The average analyst estimate sees the company’s loss per share narrowing to -$1.74 this year from -$5.08 in 2025. IONQ stock has a market capitalization of $13.9 billion and a price-to-sales (P/S) ratio of 124x.

Many big tech companies, including Microsoft, Alphabet and IBM (IBM), are investing significant amounts of time and money in quantum technology, while renowned consulting firm McKinsey has estimated that the quantum market could skyrocket to $72 billion in 2035, from just $4 billion in 2024.

IonQ’s customer list is quite impressive, having landed deals with the US Air Force, the country’s Defense Advanced Research Projects Agency (DARPA), and pharmaceutical giant AstraZeneca (AZN). It also bodes well for IONQ, the company expects to have generated between $106 million and $110 million in revenue by all of 2025.

Still, as evidenced by the fact that the quantum computing sector generated just $4 billion in revenue in 2024, the space is still in its early stages. And the Street has a history of eagerly and quickly buying emerging technology stocks, then quickly dumping those same stocks as their novelty wore off. Of course, the most famous example is the Internet bubble of the early 2000s. But many other sectors, including electric vehicle (EV) stocks and solar energy stocks, have experienced the same thing, reaching gargantuan valuations only to subsequently collapse.

Because Quantum is in its early stages and IONQ has an extremely high valuation, history indicates that it and all of its peers are vulnerable to very large pullbacks. As further evidence of that claim, its shares fell 31% in the three months ending January 30.

Ultimately, investors should wait for the stock to reach a more reasonable valuation before purchasing shares.

As of the date of publication, Larry Ramer had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com