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.

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.

IonQ (NYSE:IONQ) has raised over $372M through its “at-the-market” equity offering program. The quantum computing firm sold 16,038,460 shares of its common stock for around $372.6M, netting aggregate proceeds of ~$360M.

Investing in innovative companies is a proven strategy for generating outsized gains over time. Generally, companies that invest in research and development are positioned to benefit from multiple competitive moats and a first-mover advantage.

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 faces market headwinds with high beta vulnerability, unsustainable valuations, and limited cash runway despite revenue growth. Click to read why IONQ is a Strong Sell.