IonQ (IONQ) Slashes 9% as Govt Denies Talks with Quantum Firms

We recently published 10 Stocks Crashing Hard Despite Highly Optimistic Market. IonQ, Inc. (NYSE:IONQ)  is one of the worst-performing stocks on Tuesday.

Shares of IonQ fell by 9 percent on Tuesday to close at $57.15 apiece, ending three straight days of rally, as investors began digesting the US government’s denial that it was in talks with quantum companies for a potential investment.

IonQ, Inc. (NYSE:IONQ) dropped alongside its peer, D-Wave Quantum Inc. (NYSE:QBTS), after the Commerce Department debunked reports that it was negotiating with several quantum computing firms.

“The Commerce Department is not currently negotiating equity stakes with quantum computing companies,” a spokesperson was quoted as saying in a statement.

Last week, the Wall Street Journal reported that each quantum firm was looking to secure $10 million worth of funding from the government in exchange for government ownership, similar to other listed firms from different industries that secured million- and billion-dollar investments from the administration.

Meanwhile, investors repositioned portfolios ahead of IonQ, Inc.’s (NYSE:IONQ) third quarter earnings results after market close on Wednesday, November 5.

While we acknowledge the potential of IONQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.