IonQ (IONQ -13.83%) stock is seeing big sell-offs in Monday’s trading. The quantum computing specialist’s share price was down 13.7% as of 3:15 p.m. ET and had been down as much as 16% earlier in the daily session.
IonQ stock is losing ground today due to news that the U.S. will implement more restrictive export limitations on artificial intelligence (AI) chips. The company’s share price is also falling in conjunction with recent comments from Meta Platforms CEO Mark Zuckerberg. But there is a bright spot for investors.
IonQ stock is tumbling again
Growth stocks are seeing big pullbacks today following news that the U.S. plans to amp up export restrictions on AI chips and semiconductor manufacturing equipment. The Biden administration detailed regulations that would prevent advanced AI chips from being sold to China, Russia, Iran, and North Korea and put a limit on the number that could be sold to other countries.
In addition to sell-offs connected to geopolitical dynamics, IonQ and other quantum computing stocks are facing selling pressures connected to Zuckerberg’s appearance on Joe Rogan’s podcast last Friday. During the interview, Zuckerberg said that he believed quantum computing was “still quite a ways off from being a very useful paradigm.” The tech leader added that many people think that truly useful applications of the tech are still more than a decade away.
Zuckerberg’s comments follow similar statements made by Nvidia CEO Jensen Huang last week. Speaking about quantum computing at an analyst event at the CES trade show, Huang opined:
If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.
The tech leader’s commentary kicked off a wave of selling for quantum computing stocks, and Zuckerberg’s recent comment is having a similar impact today.
But IonQ actually had some good news for investors today
While IonQ stock is falling due to geopolitical pressures and concerns about the timeline for quantum computing commercialization, the company actually shared a bullish update this morning. It published a press release announcing that it had entered into a new contract with the U.S. Air Force Research Lab (AFRL).
IonQ’s Qubitekk division will be installing quantum network infrastructure at the AFRL’s center in Rome, New York. The project is valued at $21.1 million and is intended to improve interoperability between quantum computers and networked devices, expand hardware compatibility, and power advances in connectivity.
Despite some big sell-offs lately, IonQ is still up 145% over the last year. With the company aiming to deliver breakthroughs in a potentially revolutionary tech field with a speculative outlook, the stock could continue to be highly volatile.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
