IonQ, Inc.

Key Points
Astera Labs provides essential connectivity hardware for AI data centers and has achieved profitability with a 25.7% net margin.
IonQ is a pioneer in quantum computing with triple-digit revenue growth but faces significant net losses and technology scaling challenges.
Which semiconductor stock deserves a spot in your portfolio?
Investors searching for the next wave of computing innovation can find it in Astera Labs (NASDAQ:ALAB) and IonQ (NYSE:IONQ). Both companies offer unique exposure to the future of high-performance infrastructure.
Astera Labs focuses on the immediate needs of artificial intelligence data centers through high-speed connectivity. Meanwhile, IonQ is building the foundation for quantum computing, a field that could eventually redefine how we solve the world's most complex problems.
The case for Astera Labs
Astera Labs provides connectivity solutions that link essential components within large scale AI data centers. It has positioned itself as a critical player among semiconductor stocks by solving data bottleneck problems with its hardware and software. Because one end customer accounts for over 70% of revenue, this concentration adds a layer of risk to the business.
In its 2025 fiscal year (FY), revenue reached nearly $852.5 million, representing growth of 115.1% over the prior year. The company reported net income of $219.1 million for the same period. This was a significant turnaround from the net loss reported in fiscal year 2024 and resulted in a net margin of 25.7%.
As of its December 2025 balance sheet, the debt-to-equity ratio is zero, meaning the company has no debt relative to shareholder equity. The current ratio is 10.2x, which measures a company's ability to cover short-term debts with its current assets. Free cash flow, which is the cash a company generates after supporting operations and capital assets, was $281.8 million, but stock-based compensation represented 50.1% of operating cash flow, which inflates reported cash generation.
The case for IonQ
IonQ offers quantum computing through the cloud and is currently integrating its business by acquiring SkyWater Technology. It reaches customers through major cloud platforms provided by the likes of Amazon. These partnerships allow the company to sell its computing power as a service while developing next-generation hardware.
In FY 2025, revenue reached $130.0 million, an increase of 201.9% compared to the previous year. Despite this growth, the company reported a net loss of $510.4 million. This net loss, which resulted in a net margin of -392.6%, was driven by heavy spending on research and development, as well as acquisitions, necessary for its early-stage technology.
As of its December 2025 balance sheet, the current ratio is 15.5x, suggesting plenty of liquidity to meet short-term obligations. The debt-to-equity ratio is zero, and the company reported negative free cash flow of $299.6 million. This negative free cash flow reflects the cash consumed by operations and capital investments before generating any profit.
Risk profile comparison
Astera Labs faces significant revenue concentration, as its top three customers account for 86% of total sales. The business is also heavily dependent on Taiwan Semiconductor Manufacturing Company for its manufacturing, which creates vulnerability to geopolitical issues in Taiwan. Competition from established firms such as Broadcom remains a constant threat to its market share and pricing power.
IonQ must overcome major technological barriers related to scaling its quantum computers and achieving fault tolerance. The company remains financially dependent on external capital to fund its massive operating losses. Additionally, it relies on partners like Amazon for distribution even though those companies are developing their own competing internal quantum systems.
Valuation comparison
Astera Labs carries a Forward P/E of nearly 93.5x, while IonQ is valued at a P/S ratio of close to 97.3x.
Metric
Astera Labs
IonQ
Forward P/E
93.5x
n/a
P/S ratio
56.8x
97.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Deciding to invest in Astera Labs or IonQ is a choice between exposure to artificial intelligence or quantum computing. The former offers the massive AI tailwind at its back. The latter is a more speculative play, as quantum computers remain limited in their application due to technical hurdles that make them expensive and difficult to scale.
IonQ is a compelling investment because it’s experiencing strong sales growth. This indicates its technology is winning customers. It reported record revenue of $64.7 million in the first quarter, representing impressive 755% year-on-year growth. However, it made a number of acquisitions to expand its technical capabilities, and that’s led to rising costs. Its Q1 operating loss ballooned to $271.5 million from a loss of $75.7 million in the prior year.
Astera Labs is an all-around solid investment. Its connectivity solutions are key components to AI infrastructure, and are seeing surging demand as demonstrated by its 93% year-on-year sales growth to $308.4 million in Q1. Its profits are expanding too, with Q1 operating income of $61.8 million compared to $11.3 million in 2025. With a historic buildout of data centers happening right now, Astera Labs’ revenue is poised to continue growing.
Given these many strengths, and a lower sales multiple indicating shares are a better value compared to IonQ, Astera Labs is the superior stock to buy in 2026.
Should you buy stock in Astera Labs right now?
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Robert Izquierdo has positions in Amazon, Astera Labs, Broadcom, IonQ, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Broadcom, IonQ, SkyWater Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. IonQ: Is the Artificial Intelligence Giant or the Quantum Computing Chipmaker the Better Stock to Buy in 2026?

The NASDAQ 100 Pre-Market Indicator is down -5.1 to 27,758.03. The total Pre-Market volume is currently 133,032,151 shares traded.
The following are the most active stocks for the pre-market session:
Direxion Daily MU Bull 2X ETF (MUU) is -0.1726 at $24.38, with 11,494,480 shares traded. This represents a 2,814.21% increase from its 52 Week Low.
SoFi Technologies, Inc. (SOFI) is -0.93 at $15.81, with 8,633,649 shares traded. Smarter Analyst Reports: SoFi Concludes Acquisition of Technisys
GraniteShares 2x Long SK Hynix Daily ETF (SKUU) is -0.48 at $15.45, with 8,464,884 shares traded., following a 52-week high recorded in prior regular session.
GraniteShares 2x Short SK Hynix Daily ETF (SKDD) is +0.58 at $20.80, with 7,717,331 shares traded. This represents a 85.38% increase from its 52 Week Low.
SK hynix Inc. (SKHY) is -1.81 at $128.36, with 7,333,874 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro QQQ (TQQQ) is -0.2 at $61.36, with 5,349,226 shares traded. This represents a 64.42% increase from its 52 Week Low.
Nokia Corporation (NOK) is -0.11 at $8.82, with 2,454,149 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Bloom Energy Corporation (BE) is +14.67 at $181.51, with 2,287,092 shares traded. BE's current last sale is 63.69% of the target price of $285.
Freeport-McMoran, Inc. (FCX) is -0.28 at $61.36, with 1,204,964 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.73. As reported by Zacks, the current mean recommendation for FCX is in the "buy range".
IonQ, Inc. (IONQ) is -0.11 at $33.77, with 1,125,664 shares traded.IONQ is scheduled to provide an earnings report on 8/5/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is -0.59 per share, which represents a -70 percent increase over the EPS one Year Ago
Boston Scientific Corporation (BSX) is -3.66 at $42.40, with 1,118,210 shares traded. Smarter Analyst Reports: What Do Boston Scientific’s Risk Factors Tell Investors?
Ford Motor Company (F) is +0.68 at $15.64, with 931,881 shares traded. F's current last sale is 111.71% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jul 29, 2026 : MUU, SOFI, SKUU, SKDD, SKHY, TQQQ, NOK, BE, FCX, IONQ, BSX, F

The AI infrastructure trade has come under pressure in July as investors reassessed whether hyperscalers can sustain high levels of capital spending while generating attractive returns. Those concerns intensified after Alphabet GOOGL increased its 2026 capital expenditure guidance to $195-$205 billion from $180-$190 billion, highlighting the escalating investment required to build AI infrastructure even as cloud demand remains strong.
At the same time, reports that NVIDIA NVDA is considering financing guarantees for OpenAI's massive data center project reinforced concerns over the growing capital intensity of next-generation AI computing.
Adding to the pressure, competition from Chinese AI model developers and semiconductor companies fueled fears that returns on AI infrastructure investments could moderate over time. The combination sparked a broad sell-off across AI infrastructure and semiconductor stocks on July 28 as investors rotated out of richly valued AI names.
July Share Price Comparison of Pure-Play Quantum Stocks
Image Source: Zacks Investment Research
The Sell-Off Reaches Quantum Computing Stocks
The risk-off sentiment has also spilled over into quantum computing stocks, as investors broadly reduced exposure to high-growth AI-related technologies regardless of company-specific fundamentals. Month to date, shares of Rigetti Computing RGTI, IonQ IONQ, D-Wave Quantum QBTS and Quantum Computing Inc. or QCi have all retreated sharply (as seen in the above chart) as investors broadly reduced exposure to high-beta AI and emerging technology stocks, even though the sector's long-term commercialization outlook remains intact.
Quantum Fundamentals Remain Intact Despite the Pullback
The quantum computing sector's underlying business momentum, however, remains largely intact. Leading quantum computing companies continue to expand commercial bookings, secure government and defense contracts and strong enterprise engagement across optimization, cybersecurity and hybrid quantum-AI applications. Meanwhile, the long-term demand for next-generation computing continues to strengthen as organizations seek solutions for complex optimization, simulation and cryptographic workloads that remain difficult for classical computers.
As a result, the recent pullback appears to reflect broader market sentiment rather than a deterioration in quantum fundamentals. With several quantum companies entering the second-quarter earnings season backed by improving commercial momentum, healthy liquidity and expanding customer pipelines, the AI infrastructure-led sell-off could offer an attractive opportunity for long-term investors to buy fundamentally strong quantum stocks at low prices.
D-Wave Quantum and Rigetti Computing are two quantum computing stocks that combine compelling long-term growth prospects with the potential to deliver strong second-quarter results.
D-Wave Quantum is well positioned for another solid quarter after reporting strong first-quarter bookings of $33.4 million and remaining performance obligations (RPOs) of $42.4 million. The company also ended the first quarter with a strong cash position of $588.4 million, providing ample financial flexibility to support commercialization.
Following its acquisition of Quantum Circuits, D-Wave has expanded beyond quantum annealing into gate-model quantum computing, strengthening its competitive position. Supported by growing enterprise adoption and recent high-value commercial contracts, the company appears well placed to sustain its momentum.
With shares pulling back ahead of second-quarter earnings, QBTS offers an attractive long-term opportunity. This Zacks Rank #2 (Buy) stock is projected to report 2026 earnings growth of 75.7% on revenue growth of 63.3%.
Sales and EPS Growth Rates (Y/Y%)
Image Source: Zacks Investment Research
Rigetti Computing is another compelling quantum stock to watch ahead of the second-quarter earnings release. The company delivered nearly 199% year-over-year revenue growth in the first quarter while maintaining one of the industry's strongest balance sheets, with approximately $569 million in cash, cash equivalents and investments.
Rigetti continues to advance its superconducting gate-model quantum roadmap, including the planned launch of its 108-qubit Cepheus-1 system, while expanding collaborations with government, research and commercial customers. As enterprises increasingly explore hybrid quantum-classical computing, Rigetti remains well positioned to benefit from long-term industry adoption. Following the recent sector-wide pullback, RGTI offers an attractive risk-reward profile for long-term investors.
This Zacks Rank #3 (Hold) stock is projected to report 2026 earnings growth of 71.9% on revenue growth of 257.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sales and EPS Growth Rates (Y/Y%)
Image Source: Zacks Investment Research
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
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D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Quantum Stocks in Focus After the AI Infrastructure-led Pullback

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.02%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.32%. September E-mini S&P futures (ESU26) rose +0.02%, and September E-mini Nasdaq futures (NQU26) fell -0.33%.
Stock indexes settled mixed on Monday, with the Dow Jones Industrial Average posting a 1-week high and the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers and AI-infrastructure stocks on Monday weighed on the Nasdaq 100 and limited gains in the broader market. Investors rotated out of semiconductor and AI-infrastructure stocks on Monday and into beaten-down sectors, such as software.
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Stocks initially jumped on Monday after the US and Iran held off on attacks for a third straight day, easing geopolitical risks, pushing crude oil prices sharply lower, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” The plunge in crude oil prices on Monday knocked the 10-year T-note yield down -4 bp to 4.64%.
Monday’s US economic news showed strength in the economy and is supportive of stocks after US Jun capital goods new orders nondefense ex-aircraft, a proxy for capital spending, rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) plunged by more than -7% on Monday as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf and President Trump raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 38% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets settled higher on Monday. The Euro Stoxx 50 climbed to a 2.5-week high and closed up +0.02%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) on Monday closed up +8 ticks. The 10-year T-note yield fell -3.6 bp to 4.641%. T-notes moved higher amid Monday’s -7% plunge in crude oil prices, which eased inflation expectations. The 10-year breakeven inflation rate fell to a 1-month low of 2.201% on Monday. Weak demand for the Treasury’s $70 billion auction of 5-year T-notes limited gains in T-notes as the auction had a bid-to-cover ratio of 2.28, below the 10-auction average of 2.35 and the lowest in 3.75 years.
European government bond yields moved lower on Monday. The 10-year German bund yield fell -3.9 bp to 3.133%. The 10-year UK gilt yield fell -3.5 bp to 4.997%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Monday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) fell to a 1-week low and closed down more than -2%. Sandisk (SNDK) closed down more than -12% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) and ASML Holding NV (ASML) closed down more than -5%. Also, Western Digital (WDC), Lam Research (LRCX), and Seagate Technology Holdings Plc (STX) closed down more than -4%, and Micron Technology (MU), Applied Materials (AMAT), and KLA Corp (KLAC) closed down more than -3%. In addition, Marvell Technology (MRVL) closed down more than -2%.
Energy producers and service providers moved lower on Monday amid the -7% decline in crude oil prices. Devon Energy (DVN), Diamondback Energy (FANG), and Occidental Petroleum (OXY) closed down more than -4%, and APA Corp (APA), ConocoPhillips (COP), and Haliburton (HAL) closed down more than -3%. Also, Chevron (CVX) closed down more than -2%, and ExxonMobil Holdings (XOM) and SLB Ltd (SLB) closed down more than -1%.
Software stocks rallied on Monday, a supportive factor for the overall market. Atlassian (TEAM) closed up more than +10%, and Workday (WDAY) closed up more than +9% to lead gainers in the S&P 500. Also, Thomson Reuters (TRI) closed up more than +8%, and Autodesk (ADSK) and Palantir Technologies (PLTR) closed up more than +7%. In addition, ServiceNow (NOW) closed up more than +6%, and Salesforce (CRM) closed up more than +6% to lead gainers in the Dow Jones Industrials. Finally, Adobe (ADBE) closed up more than +5%, Oracle (ORCL) closed up more than +4%, Intuit (INTU) and Datadog (DDOG) closed up by more than +2%, and Microsoft (MSFT) closed up by more than +1%.
Airline stocks and cruise line operators moved higher on Monday after crude oil prices plunged more than -7%. American Airlines Group (AAL), Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Cruises (RCL) closed up more than +3%, and Alaska Air Group (ALK) closed up more than +2%. Also, United Airlines Holdings (UAL) and Delta Air Lines (DAL) closed up more than +1%, and Southwest Airlines (LUV) closed up +0.67%.
CH Robinson Worldwide (CHRW) closed down more than -6%, adding to last Friday’s -9% plunge, to lead trucking and freight companies lower after a Dallas jury awarded $604 million in compensatory damages against the company and two other defendants for a verdict related to a trucking accident. Also, FedEx Freight Holding Company (FDXF) and Marten Transport (MRTN) closed down more than -4%, and Arcbest (ARCB) closed down more than -3%. In addition, Old Dominion Freight Line (ODFL), Knight-Swift Transportation (KNX), JB Hunt Transport (JBHT), and XPO Inc (XPO) closed down more than -2%.
MapLight Therapeutics (MPLT) closed down more than -71% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) closed down more than -4% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Forte Biosciences (FBRX) closed up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) closed up more than +20% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) closed up more than +9% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) closed up more than +6% after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Rocket Lab Corp. (RKLB) closed up more than +4% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
Earnings Reports (7/28/2026)
American Tower Corp (AMT), Arch Capital Group Ltd (ACGL), Armstrong World Industries Inc (AWI), Avis Budget Group Inc (CAR), Axalta Coating Systems Ltd (AXTA), Axis Capital Holdings Ltd (AXS), Bloom Energy Corp (BE), Boeing Co/The (BA), BXP Inc (BXP), Caesars Entertainment Inc (CZR), Carrier Global Corp (CARR), Centene Corp (CNC), CenterPoint Energy Inc (CNP), Chemed Corp (CHE), CMS Energy Corp (CMS), Coca-Cola Co/The (KO), Corning Inc (GLW), CoStar Group Inc (CSGP), Crane Co (CR), DTE Energy Co (DTE), Ecolab Inc (ECL), Enphase Energy Inc (ENPH), ExlService Holdings Inc (EXLS), Expand Energy Corp (EXE), Extra Space Storage Inc (EXR), FirstEnergy Corp (FE), Ford Motor Co (F), HF Sinclair Corp (DINO), Hilton Worldwide Holdings Inc (HLT), Hubbell Inc (HUBB), Illinois Tool Works Inc (ITW), Incyte Corp (INCY), Invesco Ltd (IVZ), IQVIA Holdings Inc (IQV), KLA Corp (KLAC), Landstar System Inc (LSTR), Liberty Live Holdings Inc (LLYVA), Manhattan Associates Inc (MANH), Mondelez International Inc (MDLZ), NOV Inc (NOV), NXP Semiconductors NV (NXPI), Omnicom Group Inc (OMC), Oshkosh Corp (OSK), PACCAR Inc (PCAR), PayPal Holdings Inc (PYPL), Pentair PLC (PNR), PPG Industries Inc (PPG), Qorvo Inc (QRVO), Repligen Corp (RGEN), Rithm Capital Corp (RITM), Royal Caribbean Cruises Ltd (RCL), S&P Global Inc (SPGI), Seagate Technology Holdings PL (STX), Sherwin-Williams Co/The (SHW), Skyworks Solutions Inc (SWKS), STAG Industrial Inc (STAG), Teradyne Inc (TER), Textron Inc (TXT), TransUnion (TRU), United Parcel Service Inc (UPS), Unum Group (UNM), Veralto Corp (VLTO), Visa Inc (V), WP Carey Inc (WPC), Xylem Inc/NY (XYL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Mixed as AI Angst Offsets Easing Geopolitical Tensions

The S&P 500 Index ($SPX) (SPY) today is up +0.11%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.54%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.46%. September E-mini S&P futures (ESU26) are up +0.11%, and September E-mini Nasdaq futures (NQU26) are down +0.40%.
Stock indexes gave up early gains today and are trading mixed, with the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers is weighing on the broader market as investors rotate out of semiconductor and AI-infrastructure stocks and into beaten-down sectors, such as software.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks initially jumped today, with the Dow Jones Industrial Average posting a 1-week high after the US and Iran held off attacks on one another for a third straight day, easing geopolitical risks, pushing crude oil prices down sharply, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” The plunge in crude oil prices today has knocked the 10-year T-note yield down -3 bp to 4.65%.
Today’s US economic news shows strength in the economy and is supportive of stocks after US Jun capital goods new orders, nondefense ex-aircraft, rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) are down more than -6% today, as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as President Trump has raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 38% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets are higher today. The Euro Stoxx 50 climbed to a 2.5-week high and is up +0.39%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +5 ticks. The 10-year T-note yield is down -2.4 bp to 4.653%. T-notes are moving higher amid today’s -6% plunge in crude oil prices, which eases inflation expectations. The 10-year breakeven inflation rate fell to a 3-week low of 2.221% today. Supply pressures are limiting the upside in T-notes as the Treasury will auction $183 billion of T-notes today and tomorrow, beginning with a $69 billion auction of 2-year T-notes and a $70 billion auction of 5-year T-notes later today.
European government bond yields are moving lower today. The 10-year German bund yield is down -4.6 bp to 3.126%. The 10-year UK gilt yield is down -4.9 bp to 4.983%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 89% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today, weighing on the broader market. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-week low. Sandisk (SNDK) is down more than -11% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) and Western Digital (WDC) are down more than -6%. Also, Lam Research (LRCX), ASML Holding NV (ASML), Micron Technology (MU), Applied Materials (AMAT), and Seagate Technology Holdings Plc (STX) are down more than -5%, and KLA Corp (KLAC) is down more than -4%. In addition, Marvell Technology (MRVL) is down more than -3%, and Intel (INTC) and Microchip Technology (MCHP) are down more than -2%.
Energy producers and service providers are sliding today amid the -6% decline in crude oil prices. ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -2%. Also, Haliburton (HAL), APA Corp (APA), ExxonMobil Holdings (XOM), and Chevron (CVX) are down more than -1%.
MapLight Therapeutics (MPLT) is down more than -64% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) is down more than -4% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Software stocks are rallying today, a supportive factor for the overall market. Workday (WDAY) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100, and Atlassian (TEAM) is up more than +7%. Also, Autodesk (ADSK) and Oracle (ORCL) are up more than +5%, and Salesforce (CRM) is up more than +4% to lead gainers in the Dow Jones Industrials. In addition, Adobe (ADBE) is up more than +4%, and ServiceNow (NOW), Palantir Technologies (PLTR), and Intuit (INTU) are up more than +3%. Finally, Microsoft (MSFT) is up by more than +2%, and Datadog (DDOG) is up by more than +1%.
Airline stocks and cruise line operators are climbing today with the -6% plunge in crude oil prices. Alaska Air Group (ALK), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) are up more than +2%. Also, United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are up more than +1%. Also, Southwest Airlines (LUV) is up +0.53%.
Forte Biosciences (FBRX) is up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) is up more than +16% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) is up more than +7% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) is up more than +6% after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Rocket Lab Corp. (RKLB) is up more than +2% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
Earnings Reports (7/27/2026)
Rambus Inc (RMBS), Welltower Inc (WELL), Kilroy Realty Corp (KRC), Brown & Brown Inc (BRO), Principal Financial Group Inc (PFG), UDR Inc (UDR), Sanmina Corp (SANM), Nucor Corp (NUE), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), F5 Inc (FFIV), Cincinnati Financial Corp (CINF), Element Solutions Inc (ESI), Applied Digital Corp (APLD), Cadence Design Systems Inc (CDNS), Brixmor Property Group Inc (BRX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Fall from Early Highs as Chipmakers Retreat

Key Points
D-Wave Quantum announced today that AT&T will use its annealing quantum computing technology.
AT&T is trying a variety of new technologies to improve its operations.
IonQ is not an immediate beneficiary of this news.
Quantum computing stock IonQ (NYSE: IONQ) jumped 8.4% through 11 a.m. ET Monday morning -- and it's got a competitor to thank for it.
This morning, rival quantum stock D-Wave Quantum (NYSE: QBTS) announced that AT&T (NYSE: T) has signed up to use D-Wave's technology "to address complex optimization challenges across its network operations."
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Quantum's getting popular
Crazily, D-Wave stock is up only 5.5% on the news -- but IonQ is up even more! Why might that be?
D-Wave says AT&T will apply its "annealing quantum computing technology" (which uses quantum physics to find optimal solutions to complex mathematical problems) to make AT&T's AI agents more efficient when optimizing data traffic and detecting network outages. AT&T is also evaluating other D-Wave technology to further improve its network, and says it has a "broader innovation strategy, which applies quantum computing, AI, automation, advanced analytics, and software-defined infrastructure to modernize how the network is built, run, and optimized."
And that might be a clue: AT&T isn't necessarily tying itself to D-Wave alone through this partnership, but is expressing interest in trying out a range of technologies, including different approaches to using quantum computing to improve its operations. This may have investors thinking that IonQ, too, might find an "in" with AT&T -- or with other telecommunications giants.
What this means for IonQ
Is this a reasonable assumption to make? Perhaps, but it smacks more of momentum traders hoping something good will happen for IonQ than of actual evidence that these good things are already happening.
That doesn't mean they're wrong to hope, of course. But with most analysts warning that IonQ remains years from profitability, I see no compelling need to jump on this momentum trade today. IonQ stock will probably remain volatile for years.
Should you buy stock in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why IonQ Stock Just Jumped

The S&P 500 Index ($SPX) (SPY) today is up +0.65%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.56%. September E-mini S&P futures (ESU26) are up +0.65%, and September E-mini Nasdaq futures (NQU26) are up +0.60%.
Stock indexes are moving higher today, with the Dow Jones Industrial Average posting a 1-week high after the US and Iran held off attacks on one another for a third straight day, easing geopolitical risks, pushing crude oil prices down sharply, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” Stocks tied to the global buildout of artificial intelligence, from chipmakers to electrical equipment manufacturers, are leading the broader market higher today. The plunge in crude oil prices today has knocked the 10-year T-note yield down -3 bp to 4.65%.
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Today’s US economic news shows strength in the economy and is supportive for stocks after US Jun capital goods new orders nondefense ex-aircraft, and parts rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) are down more than -5% today, as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as President Trump has raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 34% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets are higher today. The Euro Stoxx 50 climbed to a 2.5-week high and is up +1.12%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +6 ticks. The 10-year T-note yield is down -2.6 bp to 4.651%. T-notes are moving higher amid today’s -6% plunge in crude oil prices, which eases inflation expectations. Supply pressures are limiting the upside in T-notes as the Treasury will auction $183 billion of T-notes today and tomorrow, beginning with a $69 billion auction of 2-year T-notes and a $70 billion auction of 5-year T-notes later today.
European government bond yields are moving lower today. The 10-year German bund yield is down -3.8 bp to 3.134%. The 10-year UK gilt yield is down -3.9 bp to 4.993%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Software stocks are rallying today, a supportive factor for the overall market. Atlassian (TEAM) and Workday (WDAY) are up more than +6%, and Oracle (ORCL) is up more than +5%. Also, ServiceNow (NOW), Palantir Technologies (PLTR), Salesforce (CRM), Adobe (ADBE), and Datadog (DDOG) are up more than +3%. In addition, Microsoft (MSFT) and Intuit (INTU) are up more than +2%.
Airline stocks and cruise line operators are climbing today with the plunge in crude oil prices. Alaska Air Group (ALK) and Carnival (CCL) are up more than +4%, and United Airlines Holdings (UAL) and Norwegian Cruise Line Holdings (NCLH) are up more than +3%. Also, American Airlines Group (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and Royal Caribbean Cruises (RCL) are up more than +2%.
Energy producers and service providers are sliding today, with the -5% plunge in crude oil prices. ConocoPhillips (COP), ExxonMobil Holdings (XOM), Devon Energy (DVN), and Diamondback Energy (FANG) are down more than -2%. Also, Haliburton (HAL), APA Corp (APA), and Chevron (CVX) are down more than -1%.
Forte Biosciences (FBRX) is up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) is up more than +16% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) is up more than +12% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Mobileye Global (MBLY) is up more than +9% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $12.
Rocket Lab Corp. (RKLB) is up more than +6% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
MapLight Therapeutics (MPLT) is down more than -66% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Earnings Reports (7/27/2026)
Rambus Inc (RMBS), Welltower Inc (WELL), Kilroy Realty Corp (KRC), Brown & Brown Inc (BRO), Principal Financial Group Inc (PFG), UDR Inc (UDR), Sanmina Corp (SANM), Nucor Corp (NUE), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), F5 Inc (FFIV), Cincinnati Financial Corp (CINF), Element Solutions Inc (ESI), Applied Digital Corp (APLD), Cadence Design Systems Inc (CDNS), Brixmor Property Group Inc (BRX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rally as Middle East Tensions Ease

The NASDAQ 100 Pre-Market Indicator is up 362.32 to 28,490.66. The total Pre-Market volume is currently 171,249,120 shares traded.
The following are the most active stocks for the pre-market session:
T3 Defense Inc. (DFNS) is +2.63 at $6.98, with 16,947,508 shares traded. As reported by Zacks, the current mean recommendation for DFNS is in the "strong buy range".
Nokia Corporation (NOK) is +0.31 at $9.41, with 5,792,581 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Direxion Daily TSLA Bull 2X ETF (TSLL) is +0.1399 at $7.56, with 4,281,682 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro QQQ (TQQQ) is +2.47 at $66.47, with 4,179,543 shares traded. This represents a 78.11% increase from its 52 Week Low.
Direxion Daily MU Bull 2X ETF (MUU) is +1.1274 at $32.40, with 2,883,669 shares traded. This represents a 3,772.97% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -1.75 at $43.04, with 2,871,184 shares traded. This represents a 20.22% increase from its 52 Week Low.
GraniteShares 2x Short SK Hynix Daily ETF (SKDD) is -1.27 at $13.62, with 2,604,662 shares traded. This represents a 21.39% increase from its 52 Week Low.
BitMine Immersion Technologies, Inc. (BMNR) is +0.78 at $16.57, with 1,008,390 shares traded. As reported by Zacks, the current mean recommendation for BMNR is in the "buy range".
Oracle Corporation (ORCL) is +3.1216 at $118.11, with 764,108 shares traded., following a 52-week high recorded in prior regular session.
SK Telecom Co., Ltd. (SKM) is +0.73 at $36.40, with 744,945 shares traded. SKM's current last sale is 130.23% of the target price of $27.95.
IonQ, Inc. (IONQ) is +1.31 at $34.15, with 661,278 shares traded. As reported by Zacks, the current mean recommendation for IONQ is in the "buy range".
Stellantis N.V. (STLA) is -0.11 at $5.58, with 611,994 shares traded.STLA is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 0.41 per share, which represents a 99,900 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jul 27, 2026 : DFNS, NOK, TSLL, TQQQ, MUU, SQQQ, SKDD, BMNR, ORCL, SKM, IONQ, STLA

Key Points
Infleqtion will connect quantum computing with existing AI infrastructure, and Nvidia is backing the company.
Hundreds of customers work with Infleqtion in high-growth industries with deep pockets.
This stock isn't for the faint of heart, since it will end up with a price-to-sales ratio of 50 if it achieves its full-year guidance.
Quantum computing hasn't had the same commercial success as artificial intelligence quite yet, but it has the potential to impact many industries. This technology can operate much faster than traditional computers and solve problems that current technology cannot.
Well-known quantum stocks like IonQ and Rigetti Computing have been extremely volatile, with multiple cases of doubling in a single month or losing more than 30% in a single month over the past five years. These stocks can spike sharply as quantum gets closer to commercialization, but investors may want to focus on Infleqtion (NYSE: INFQ) instead, especially as it approaches a 52-week low.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Infleqtion has a partnership with Nvidia
One thing that Infleqtion has going for it is a partnership with Nvidia, the incredibly successful chip company that's grown to a market cap of nearly $5 trillion. Given its sheer size, Nvidia draws a lot of attention to any collaboration it pursues, given how much money flows into the AI chipmaker's coffers each quarter.
Infleqtion's Nvidia partnership could potentially set it up for billions of dollars once Infleqtion's technology, which integrates quantum computing with existing AI infrastructure, is commercialized.
The infrastructure used in AI data centers is completely different from that in quantum data centers. Infleqtion's technology can serve as a major connector that makes it unnecessary to replace AI data centers with quantum data centers. Infleqtion's Sqale Quantum Processing Unit (QPU) will be connected to Nvidia's NVQLink to enable integration with quantum supercomputing. Infleqtion Chief Technology Officer Pranav Gokhale touted QPUs as "a strong foundation for this new HPC era," which will focus on the "seamless integration of quantum and classical resources into a single unified platform."
Quantum and AI are connected, and Infleqtion's partnership with Nvidia gives it a head start in capitalizing on this opportunity.
Infleqtion already has a large customer footprint
Infleqtion told investors in its first-quarter earnings presentation that it has hundreds of quantum customers. While the company is small, it can potentially make substantial revenue from each customer, especially as the technology gets more effective and is commercialized.
Governments, enterprises, and research companies all have deep pockets. That resulted in only $9.5 million in Q1 revenue for Infleqtion, which was up by 14% year over year, but that's the nature of pure quantum picks. Revenue is low for now, but it can go parabolic at any time. GAAP losses from operations reached $33.6 million, showing that this is a high-risk, high-reward pick.
Infleqtion's customer base has helped lay the groundwork to gain market share in national security, space, and hybrid quantum-AI applications. The company expects these efforts to produce at least $40 million in full-year 2026 revenue.
Infleqtion also revealed that it is developing an atom-based radio-frequency sensing platform due to "growing customer interest." Not only does this indicate customers want to spend more money on quantum, but it also shows that they trust Infleqtion with their capital.
The valuation is a mess
The partnership with Nvidia, positioning in the quantum computing industry, and customer base are major catalysts for Infleqtion. In the long run, the stock can compound quickly once quantum computing is commercialized and goes mainstream.
However, current investors will have to be patient with the valuation. Even if it hits $40 million in full-year revenue, a $2 billion market cap presents a daunting 50 price-to-sales ratio. Furthermore, Infleqtion is burning through cash as it monetizes its innovative technology.
Investors considering Inflection may want to take a small position rather than make it a top holding. It's essentially a lottery ticket backed by some of the biggest leaders in tech, government, and research. You will have to ignore metrics like P/E ratios and price-to-sales ratios for now when analyzing this stock.
Should you buy stock in Infleqtion right now?
Before you buy stock in Infleqtion, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Infleqtion wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Quantum Stock Is a Key Nvidia Partner and Looks Like a Buy Near a 52-Week Low

Key Points
Quantum computing represents a new frontier in technology that some predict could deliver trillions in economic value over the next decade.
A number of smaller, research-heavy pure-play companies are attempting to build quantum computers suitable for enterprise use cases.
One "Magnificent Seven" company is better positioned than the pure plays to benefit from quantum computing adoption, and it's trading at a historically low valuation.
Quantum computing represents a fundamental shift from classical systems, which process data using binary bits that exist as zeros or ones in underlying codebases. Quantum machines use qubits, which possess a property called superposition -- allowing them to evaluate vast numbers of possibilities simultaneously.
This capability holds particular promise for artificial intelligence (AI), where quantum computers could deliver faster answers to complex optimization problems, enhance machine learning, and simulate molecular interactions, among many other uses. According to McKinsey & Company, quantum computing could add up to $2.7 trillion of value to the global economy by 2035, underscoring the scale of the opportunity as this technology matures from laboratory curiosity toward practical utility.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
What are the most popular quantum computing stocks?
IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), and D-Wave Quantum (NYSE: QBTS) are the primary publicly traded pure-play companies focused on quantum computing hardware and services.
IonQ employs trapped-ion qubits in its quantum systems, which aim to improve AI models and create better data for research purposes. Meanwhile, Rigetti uses superconducting qubits to build quantum computers that customers can leverage with existing AI-native tools. Both IonQ and Rigetti offer access to their platforms through cloud-based environments, seeking integrations with infrastructure providers like Microsoft Azure, Amazon Web Services, and Google Cloud. D-Wave has primarily focused on a niche technology called quantum annealing that is only useful for solving optimization problems and sampling problems. However, those types of problems include a host of real-world applications in areas like logistics, finance, and drug discovery.
Across these companies, technology remains heavily research-oriented. While commercial systems and cloud access are expanding, they are still years away from delivering enterprise-grade fault-tolerant machines capable of providing a measurable quantum advantage.
Analyzing the financial realities of quantum pure plays
Though they are all generating some revenues and receiving support from government subsidies, each of these quantum pure plays continues to post substantial operating losses. All of them have relied on repeated equity raises to fund their research and development. The result has been ongoing shareholder dilution.
The valuations of the quantum pure plays reflect extreme speculation rather than concrete fundamentals. IonQ has a price-to-sales (P/S) ratio around 58, while Rigetti and D-Wave both sport P/S multiples near 480. For cash-burning operations whose progress has yet to translate into profitability or self-funding growth, these valuation profiles are overextended, to say the least.
What is the best quantum computing stock?
In my view, Nvidia (NASDAQ: NVDA) is the strongest candidate to consider buying for any investor seeking quantum computing exposure in their portfolio.
Nvidia supplies the classical infrastructure essential to building quantum machines through its CUDA-Q platform, which enables hybrid quantum-classical programming across GPUs, CPUs, and quantum processors. As quantum AI scales up, these systems will increasingly depend on Nvidia's ecosystem for next-generation algorithms that allow the strengths of classical and quantum computing to be efficiently combined.
Meanwhile, Nvidia's price-to-earnings (P/E) ratio of 32 is hovering around its lowest level in nearly seven years. This discount suggests that the potential upsides of quantum computing adoption and continued AI infrastructure expansion are not yet fully reflected in Nvidia's stock price.
This positions Nvidia stock as a compelling buy to capture the near-term momentum of data center build-outs, while offering leveraged exposure to longer-term advances of quantum computing over the coming decade.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Adam Spatacco has positions in Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon, IonQ, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Forget IonQ, Rigetti Computing, and D-Wave Quantum. This Trillion-Dollar Artificial Intelligence (AI) Stock Is the Best Quantum Computing Opportunity, and It's Currently Trading at a 7-Year Valuation Low.

IonQ, Inc.

Price history and volume

360 Overview

Investment risk — high

Investment potential — medium

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