Nothing ever moves in a straight line. Investors who think they’ve missed out on a trend can likely have several opportunities to buy in, especially for a trend with years behind it.
The AI trend of the past few years has seen a number of pullbacks, including the market’s 8.5% peak-to-trough decline in 2024, and a 10% pullback in 2023. But a new trend is emerging that’s much more fast-moving.
That trend is quantum computing. Companies focusing just on this technology took a massive dive earlier this week, following comments from Nvidia’s CEO about how long truly quantum computing would take.
The poster child for the industry, IonQ (IONQ), dropped 40% on the remarks. However, shares are still up five-fold from their 52-week lows. While an early-stage company, IonQ has had no trouble expanding its quantum computing system operations.
More importantly, IonQ’s general-purposes systems are designed to integrate on cloud platforms, which should allow them to ramp up quickly and meet rising computing demand from the major tech companies.
Action to take: Speculative investors may like shares here following their sharp pullback. IonQ will likely remain volatile, but could still impress investors in the quantum computing space in the years ahead.
For traders, shares are still in an longer-term uptrend. The July $50 calls, last trading for about $6.40, could see high double-digit returns in the months ahead if shares resume their uptrend after this recent gap lower.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.