1 Quantum Computing Stock That Is a Glaring Buy, According to Wall Street
Similar to artificial intelligence (AI), quantum computing is seen as a big technological disruption in the making that will revolutionize society. Quantum computers will ideally be able to solve complex problems that have stumped classical computers and do so in a much more efficient manner than humans have to this point.
If you were one of the lucky few investors who managed to recognize this a year ago and purchased quantum computing stocks, then your portfolio has likely generated tremendous alpha. Investors continue to bet on this young industry that hasn't generated meaningful revenue or earnings yet, but not every one of these bets will be a winner.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Here's one quantum computing stock that Wall Street analysts think is a glaring buy.
A leader in the space
According to Tipranks, five Wall Street analysts have issued research reports on Rigetti Computing (NASDAQ: RGTI) over the last three months, and all five rate the company a buy. The average price target of $15 implies about 30% upside over the next 12 months or so.
Quantum computing is considered the next advancement for the computer industry that has now ingrained itself everywhere from the modern home to the classroom to the office. While computers use bits, small units of information that process and store data, quantum computers use qubits to try and process the data much faster in order to execute much larger and more complex calculations.
Rigetti has been selling quantum computers to end users for a few years now and is constantly innovating, trying to put out better models. At the end of 2024, the company announced the public launch of its 84-qubit Ankaa-3 system, which cut error rates in half in 2024 to achieve 99% median two-qubit iSWAP gate fidelity, a measure of accuracy. By the end of this year, Rigetti plans to release a quantum computer with over 100 qubits with a reduction in error rates double that achieved in its latest system. The more qubits a quantum computer has, the more powerful the computations it can conduct.
Earlier this year, Alliance Global Partners analyst Brian Kinstlinger noted that Rigetti is one of the "three most advanced quantum computer OEMs (original equipment manufacturers)" along with Alphabet 's Google and IBM. Companies like Microsoft and Amazon have only announced quantum chips with eight or nine qubit sizes.
Rigetti has also made some progress toward commercialization. The company's partners and customers include Amazon Web Services (AWS), Standard Chartered, Moody's, the Defense Advanced Research Projects Agency, the Department of Energy, the Air Force Research Laboratory, and the United Kingdom-based National Quantum Computing Centre.
Rigetti has also been awarded several grants. Earlier this year, Quanta, the second-largest contract electronics manufacturer in Taiwan by revenue, invested $35 million in Rigetti, which Kinstingler called "yet another validation" of Rigetti's leadership in the space.
Should you follow Wall Street's advice?
The difficult thing about all quantum computing stocks is that the revenue they are generating is minimal and can be sporadic right now. Most of these companies, which are still basically start-ups, are losing money.
For instance, Rigetti generated about $10.8 million of revenue in 2024 and over a $200 million loss. In the first quarter of the year, Rigetti generated about $1.5 million of revenue and a profit due to non-cash gains from changes in the fair value of its warrant liabilities. However, the company would have put up more losses had it not been for that non-recurring cash gain.
Meanwhile, investor enthusiasm has sent the stock surging 1,097% over the past year (as of June 24) and to a $3.7 billion market cap. Given the big run and massive valuation now, I think investing in Rigetti is still quite risky. I wouldn't recommend anything more than a flyer or a speculative position that you can afford to lose.
Should you invest $1,000 in Rigetti Computing right now?
Before you buy stock in Rigetti Computing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rigetti Computing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!*
Now, it's worth noting Stock Advisor 's total average return is818% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
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*Stock Advisor returns as of June 23, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, Microsoft, and Moody's. The Motley Fool recommends Standard Chartered Plc and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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