Rigetti and IonQ: David Williams Selects the Best Quantum Computing Stocks to Buy

Business Insider

a day ago

What's the next big thing? That question defines so many aspects of our world, from fashion to automobiles to high technology. It's rare that the answer is obvious, but one emerging trend is beginning to stand out: quantum computing. Once the stuff of science fiction, it's quickly becoming the next great leap in technology.
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Quantum computing promises to bring faster, more capable supercomputers from the drawing board to the real world – machines capable of performing multiple complex calculations simultaneously by leveraging the principles of superposition and entanglement inherent in quantum physics. The expected result: computers that can solve in minutes problems that today's most advanced machines couldn't crack in a century.
According to ResearchAndMarkets, the quantum computing market was worth $1.85 billion globally last year, and is expected to hit $7.48 billion by 2030. That translates to a CAGR of nearly 29%. Unsurprisingly for a new field of computing tech, the hardware makes up the largest segment, 61%, of quantum's current market.
This is the field that Benchmark's David Williams, a 5-star analyst ranked in the top 3% of Street experts, is looking at. He sees the opportunity, and he's digging into the current crop of companies to identify two top investment opportunities: Rigetti (NASDAQ:RGTI) and IonQ (NYSE:IONQ).
Using the TipRanks platform, we checked out his picks and found that Williams isn't alone in his bullish stance – both stocks carry a Strong Buy consensus from Wall Street. Let's take a closer look.
Rigetti Computing
First on our short list today is Rigetti Computing, a Berkeley, California-based quantum hardware developer and provider. Rigetti has given itself a clear mission – to develop the hardware that will support and power quantum computing and move the supercomputer field into its next generation. The company has already developed a basic architecture, based on a dilution refrigeration system that cools the quantum computer to a mere one-hundredth of a Kelvin – far colder than even the depths of space. This system is designed to support Rigetti's quantum processor units, QPUs, the superconducting quantum integrated circuits that form the 'brain' of the quantum computer.
Rigetti is intimately involved with every aspect of quantum computer design and construction, from the cooling systems to the QPUs to the quantum integrated circuits (QuICs) that provide control capabilities for the finished device. This involvement allows Rigetti to design and build quantum computers at the customer's desired scale. Recognizing that not every customer needs or wants a whole quantum computer in-house, Rigetti is also leading the way as a provider of quantum cloud services (QCS), or hybrid quantum-classical computing. The company can support ultra-low latency connectivity to link high-performance classical computing systems to its QCS.
This past December, Rigetti launched its most advanced quantum computer, the Ankaa-3 system. This system can handle up to 84 qubits, the two-state quantum-mechanical bits that make quantum computing possible. More recently, Rigetti has released Novera, a smaller 9-qubit quantum computer based on the Ankaa-3's architecture. This new, smaller, QPU is designed to bring high performance to a smaller machine, and to make quantum computing accessible even in these early stages.
Looking ahead, Rigetti's CEO has charted out a somewhat conservative course for new product and system development. He sees the company deploying, by the middle of this year, a 36-qubit system based on four linked 9-qubit chiplets, and believes that the company can deploy 100-plus qubits by year's end.
Also this month, Rigetti released its 1Q25 financial results – and the top line came in well below expectations. Rigetti's revenue in the quarter was just $1.5 million, more than $1 million below the forecast, and the company's quarterly operating loss came to $21.6 million. Rigetti finished the quarter, on March 31, with $209.1 million in cash and other liquid assets available – but that was boosted before April was out when Quanta Computer purchased $35 million worth of the company's common stock. As of April 30, Rigetti had $237.7 million in liquid assets on hand.
For Benchmark's Williams, the key point here is Rigetti's ability to keep moving forward with its technology. He sees the company's modular approach as an important benefit, and writes, 'We remain confident in RGTI's technology roadmap and its steady progress toward meeting internal fidelity goals. In our view, the company's superconducting methodology and modular architecture give it an inherent edge in solving the scalability issue faced by gate-based systems. Although RGTI projects a slower timeline for mass adoption than some peers, growing interest in QPU hardware sales offers near-term revenue potential ahead of wider quantum uptake. We are encouraged by consistent execution across every element of the technology platform, with fidelity standing as the key remaining obstacle to realizing quantum advantage.'
Going forward from here, Williams believes that Rigetti has a sound foundation, adding: 'Despite the firm's cautious outlook, we believe RGTI is strategically positioned with a compelling architecture, substantial IP moat, and healthy balance sheet to support these efforts.'
Overall, analysts are all in on Rigetti. The stock holds a Strong Buy consensus based on 5 unanimous ratings. With shares at $13.89 and an average price target of $15, the forecast calls for a 9% gain over the next 12 months. (See RGTI stock forecast)
IonQ
The second stock we'll look at is IonQ, which gets its name from the approach the company takes toward quantum computing. IonQ is developing trapped ion quantum computers, using electromagnetic fields to trap electrically charged atomic particles, ions, and to then use the stable electric states of those ions to store qubit information. The advantage of IonQ's approach lies in the nature of atomic particles – being closer to their subatomic building blocks than other material particles, atoms are described by the company as 'naturally quantum,' and more amenable to storing qubit data.
IonQ was founded in 2015, and in the decade of its existence, the Maryland-based company has matured into the first publicly traded pure-play quantum computing firm. IonQ has brought its atomic approach into the real world through its commercially available quantum computers, Aria, and Forte. The flagship system, Aria, is a 25-qubit system that was designed to bring IonQ's approach to life; Forte, the company's second commercial system, expanded the capacity to 36 qubits.
This combination of scientific credibility and commercial traction is fueling excitement on Wall Street. IonQ's stock is soaring ~37% today after CEO Niccolo de Masi told Barron's that the company aims to become the 'Nvidia of quantum computing.' Investors are responding positively to this vision, viewing it as a strong commitment to industry leadership.
That rally isn't just based on words. In the first quarter, IonQ landed a $22 million deal to deliver its Forte Enterprise system to EPB in Chattanooga, where it will power the first commercially available quantum computing and networking hub. Looking ahead, IonQ is preparing to launch Tempo, a 64-qubit system designed to achieve quantum advantage in practical applications, marking another major step in the company's effort to make quantum computing commercially viable.
On the financial side, IonQ generated $7.57 million in revenue during 1Q25, roughly flat year-over-year, and saw a quarterly net EPS loss of 14 cents. The EPS loss beat the forecast by 15 cents per share. IonQ is guiding for Q2 revenue in the range of $16 million to $18 million, and sees full-year 2025 revenue landing between $75 million and $95 million. At the midpoint, both targets are roughly aligned with Wall Street's expectations of $16.93 million for Q2 and $85.42 million for the full year.
David Williams, in his coverage of IonQ, notes that the company is still at a very early stage – but that it has a high potential to beat analyst expectations.
'While IonQ is an early-stage tech company, the firm is executing well against targets and hitting key milestones ahead of schedule, giving us confidence that the progress toward the long-term roadmap will continue. We have increased conviction in the firm achieving Commercial Advantage later this year, likely solidifying the company's first mover advantage, which we believe will be a significant milestone and major catalyst to drive shares meaningfully above our price target. However, recognizing the risks, inherent challenges in timing, and lacking qualitative, industry accepted benchmarking techniques, we prefer to maintain a conservative valuation approach. We also note, the cadence of technology advances and expected reauthorization of the NQIA in addition to Quantinuum's potential IPO may provide a catalyst near-term,' Williams.
While this top-rated analyst is cautious in his outlook, he believes that IonQ can deliver, as he explains, 'Despite tempered competitor forecasts for the industry not reaching sufficiently capable systems to generate commercial value until later this decade, our view is IONQ is likely nearer than the broader market is anticipating. With the strongest balance sheet among public peers and consistent execution, we remain confident in the company's roadmap and growth potential.'
Williams clearly sees IonQ as a standout in the quantum space, rating the stock a Buy.
Overall, the Street's take on Moderna presents something of a conundrum. The stock has a Strong Buy consensus rating, based on 4 Buys and 1 Hold. However, the $40 average price target implies shares will drop ~12% in the year ahead. It will be interesting to see if analysts make changes to their IONQ models shortly. (See )
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