While many high-growth technology stocks have experienced profit-taking as investors shifted toward other parts of the market, quantum companies, in particular, have seen their lofty valuations come under scrutiny given that they remain years away from producing sustainable earnings.
The selling has been especially severe for two of the industry’s best-known pure-play companies. IonQ (NYSE:IONQ) has dropped about 38% during July, while Quantum Computing (NASDAQ:QUBT), often referred to as QCi, has declined ~23%.
Although both companies are working toward the same long-term opportunity, they rely on very different technologies and commercial strategies. IonQ builds quantum computers using trapped-ion technology, which has earned recognition for producing highly accurate qubits. The company sells access to its systems through leading cloud platforms, including Amazon Braket and Microsoft Azure Quantum, while also expanding into quantum networking and seeking greater semiconductor capabilities through its proposed SkyWater acquisition.
Quantum Computing has taken another path by focusing on quantum photonics, using particles of light instead of trapped ions to perform quantum calculations. Alongside its computing platform, the company is expanding optical chip manufacturing and foundry services through its acquisitions of Luminar Semiconductor and NHanced Semiconductors. Both businesses believe quantum computing will eventually transform computing, although they are pursuing very different routes toward commercial success.
