Shares of quantum computing company IONQ Inc. plunged 5.05% during Wednesday's intraday trading session amid concerns that the current hype surrounding the sector may be unsustainable in the near term.
According to a research note from Needham analyst Quinn Bolton, IONQ and fellow quantum computing firm Rigetti Computing could see their stock prices decline by as much as 54% and 80%, respectively. Bolton cited a lack of operating performance and high cash burn as key risks, suggesting that these companies may struggle to meet lofty investor expectations.
While quantum computing is touted as a potentially game-changing technology with a projected $850 billion in economic value by 2040, analysts warn that the sector is still in its early stages. History has shown that emerging technologies often face bubble-bursting events before reaching maturity, and quantum computing may not be an exception.
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