Better Quantum Computing Stock: IonQ vs. D-Wave
2026-10-01 21:15
•Will Healy •The Motley Fool
••••• •••••••• Axe Cap view
Quantum Computing: IonQ's Edge Over D-Wave
IonQ offers better potential than D-Wave despite hefty losses and valuations.
Quantum computing remains a speculative play, especially for South African investors. IonQ stands out with industry-leading precision and a strong tie-up with Nvidia, which signals serious backing and future growth. Its revenue jumped impressively, but losses and a 65 price-to-sales ratio mean it’s far from cheap. D-Wave's technology is innovative with real-world uses but a 67% revenue drop and absurdly high P/S of 475 make it a tougher pill to swallow. For Rand-based investors, direct exposure is limited, so the USD/ZAR rate will be a key factor, with a weaker Rand potentially boosting returns on these US-listed names. If the tech hype fades or Nvidia pulls back, IonQ’s valuation could deflate swiftly. Approach quantum stocks as long shots rather than core holdings. this is just our opinion and not financial advice
Monitor IonQ for selective exposure but avoid D-Wave due to poor revenue trends and extreme valuation risk. Use USD/ZAR trends as a barometer for entry timing.
- IONQ
- QBTS
- USD/ZAR
- Quantum tech fails to meet commercial expectations soon
- USD/ZAR volatility erodes returns
5/10
The article compares two quantum computing stocks, IonQ and D-Wave Quantum. IonQ demonstrates industry-leading precision with 99.99% 2-qubit gate fidelities and has a partnership with Nvidia, but faces massive operating losses and an extremely high P/S ratio of 65. D-Wave has achieved real-world applications through its quantum annealing technology and Leap cloud service, but revenue declined 67% year-over-year with a P/S ratio of 475. The author recommends IonQ as the relatively safer choice despite both stocks carrying significant risks and being overvalued.
Our take is based on reporting first published by The Motley Fool.