Quantum computers hold a lot of promise. They could advance medicine and materials science discoveries, improve weather forecasting models, and help create more advanced artificial intelligence. These vast possibilities have some investors and tech companies giddy,

Most of the water cooler discussion these days among investors discussing the highest-flying stocks continues to be around artificial intelligence stocks, or companies leveraging such technology for growth.

Shares of quantum computing companies wavered on Thursday after jumping yesterday on renewed investor interest in the nascent technology.

Investing is sometimes about weighing the potential reward versus the risks involved. Sure, IonQ could become a powerhouse in quantum computing. The issue is that the stock is already valued as if it's a given when it's not. If things don't work out as investors hope, the stock has an immense downside from its current price.

Quantum computing stocks delivered explosive gains until the start of the year. Investors invested in them as the AI rally pushed most tech-related stocks to record highs, and quantum computing was seen as the next big beneficiary of AI.

IonQ raises $372M through equity offering to secure $700M pro-forma cash balance for 2024, despite market turbulence.