IonQ Removes Major Quantum Barrier, Driving Investor Debate Over Commercial Timelines

IonQ Inc. (NYSE:IONQ) is drawing fresh attention to the quantum-computing industry after demonstrating real-time error correction, a development that analysts and traders see as an important step toward making the technology commercially useful. Grasso Sees Quantum Arriving Sooner CNBC’s "Fast Money" trader Steve Grasso said on Thursday that real-time error correction has been one of the biggest problems facing the quantum-computing industry. He believes IonQ’s breakthrough addresses that challenge by allowing a quantum system to identify and correct errors without slowing down its operations. Grasso said IonQ currently stands apart because competitors have not demonstrated the same capability. However, he cautioned that quantum companies continue to burn significant amounts of cash. He believes quantum computing could become practical sooner than investors previously expected. Rather than betting on one company, Grasso favors owning a basket of quantum-computing stocks to spread the risk across the industry. Munson Sees IonQ As A Speculative Pure Play Portfolio Wealth Advisors President and CIO Lee Munson also told CNBC that he believes IonQ removed a major roadblock to commercializing quantum computing. Munson described IonQ as essentially a venture-capital investment inside a publicly traded stock, reflecting the company’s early-stage and speculative nature. He sees IonQ as one of the more direct ways to gain exposure to quantum computing for investors willing to accept higher risk. Munson distinguished IonQ from D-Wave Quantum Inc. (NASDAQ:QBTS), saying the companies approach quantum computing differently and therefore should not necessarily trade together. IBM And Google Offer Less Speculative Exposure For investors who prefer established businesses and stronger cash flow, Munson pointed to International Business Machines Corp. (NYSE:IBM) and Alphabet Inc.’s (NASDAQ:GOOGL) Google as alternative ways to participate in the quantum-computing theme. Taken together, Grasso and Munson see IonQ’s breakthrough as meaningful for the industry but emphasize different approaches to investing in the sector. Grasso favors a diversified basket of quantum names, while Munson sees IonQ as the higher-risk pure play and IBM and Google as more established alternatives. IONQ Price Action: IonQ shares were down 2.97% at $41.27 during premarket trading on Thursday, according to Benzinga Pro data. Read Also: D-Wave Quantum Expands Defense Work, Moves HQ To Florida Image via Shutterstock