IonQ vs. Rigetti: Which Quantum Computing Stock Is the Better Buy?

Globe and Mail

15-04-2025

As the artificial intelligence (AI) race heats up with massive investments from the likes of Google (GOOGL), Microsoft (MSFT), Meta (META) and Amazon (AMZN), among others, it seems that the tech titans have already identified the next major landscape to dominate: Quantum Computing.
Slated to have a $2 trillion impact by 2035, quantum computing finds applications in a vast array of industries, ranging from cryptography to drug discovery. And with major players like Google (through its Willow chip), Microsoft (through its Majorana chip) and Amazon (through its Ocelot chip) already making major moves, it is safe to assume that this can be the next magtrend in tech.
While mega-cap tech giants may have seemingly unlimited reserves of cash that they can pour into winning the quantum computing battle, the nimble, pure-play enterprises of the sector have had a headstart. Two such names are IonQ (IONQ) and Rigetti Computing (RGTI). But which one is a better buy? Let's stack up the two companies and try to find out.
#1: Comparing Financials
Both companies are yet to be profitable, which is not a cause for a major concern in a rapidly growing and evolving industry like quantum computing.
In the most recent quarter, Rigetti reported revenues of $2.3 million, down 33% from the previous year, while losses widened considerably to $0.68 per share from $0.09 per share in the year-ago period.
However, the company remains in a solid liquidity position overall with a cash and equivalents balance of $67.7 million (vs $21.4 million in the year-ago period) with short-term debt of just $2.2 million on its books.
On the other hand, IonQ saw a remarkable 95% yearly jump in revenues to $43.1 million in 2024, exceeding the high end of the previously announced guidance range of $38.5 million to $42.5 million. Although this was accompanied by a substantial widening of net losses to $331.6 million from $157.8 million in the year-ago period, bookings for the full year came in at $95.6 million, which denoted yearly growth of 46.9%.
In terms of liquidity, IonQ is in a comfortable position with a cash and equivalents balance at the end of the year at $340.3 million, much higher than its short-term debt levels of just $3.4 million.
#2: Comparing Strategic Developments
While IonQ and Rigetti Computing both operate within the frontier of quantum computing, they pursue distinct technological paths that reflect differing strategic ambitions.
IonQ has built its foundation on the development of general-purpose trapped-ion quantum processors. These systems use atomic ions as qubits, an approach that offers longer coherence times and reduced operational noise compared to superconducting architectures. Such advantages become more pronounced as quantum workloads scale, supporting greater precision in complex computations. IonQ's hardware is fully integrated within a cloud-native stack, providing customers with end-to-end access through its proprietary platform and Amazon Web Services' managed quantum service. The company's latest release, the IonQ Forte Enterprise, is available to global clients and signals a commitment to commercial deployment at scale.
IonQ's technological strategy is complemented by a deep network of high-profile partners across both tech and industry verticals. Its alliances with Amazon, Google, and Microsoft serve to validate its infrastructure and enhance cloud interoperability, while collaborations with firms like Hyundai (HYMTF), AstraZeneca (AZN), and Airbus (EADSY) underscore its relevance across transportation, healthcare, and aerospace sectors. With this breadth of engagement and strong system-level performance, IonQ has begun to carve out a defensible position in the broader commercial quantum landscape.
Rigetti, meanwhile, focuses on superconducting quantum systems and maintains full-stack control of its chip development and fabrication. The company operates its own production facility — Fab-1 — in Fremont, California, and has secured more than 200 patents in its intellectual property portfolio. Rigetti is credited with producing the first multi-chip quantum processor, positioning itself as a leader in modular, scalable architectures.
In a recent milestone, Rigetti unveiled the Ankaa-3 system, an 84-qubit processor designed to enhance gate fidelity and suppress error rates — an area that continues to challenge all quantum computing platforms. The Ankaa-3 achieves a 99.0% median fidelity for iSWAP gates and 99.5% for fSim gates, marking a material advancement. The system is accessible to partners through Rigetti's own Quantum Cloud Services and also integrates with Amazon Braket and Microsoft Azure, broadening access to enterprise users.
Rigetti's roadmap for fiscal year 2025 is equally ambitious. It plans to launch a 36-qubit, four-chip system in the second quarter with further reductions in gate error, followed by a 108-qubit system in the fourth quarter that is expected to deliver similar gains. These next-generation platforms are poised to raise the bar for fault-tolerant superconducting designs.
The company has also cultivated important relationships with national laboratories and research institutions. Notable collaborators include the UK's National Quantum Computing Centre, NASA, the Air Force Research Laboratory, DARPA, and Fermilab. Commercial partnerships with entities like Standard Chartered (SCBFY), Moody's (MCO), and AWS further illustrate Rigetti's cross-sector appeal and access to real-world deployment opportunities.
In sum, IonQ demonstrates early strength in system fidelity, software integration, and commercial traction — particularly in use cases that demand precision and scale. Rigetti, by contrast, has made strong progress in multi-chip design, error reduction, and government-led quantum initiatives. While their technical foundations diverge, both companies remain vital to the evolution of quantum computing's enterprise potential.
#3: Comparing Share Price Performance
2025 has not been kind to the Rigetti stock, with the name correcting by 41% on a YTD basis. However, over the past year, the stock has seen a surge of 662%. Its current market cap is at $2.6 billion.
The same is the case with IonQ, which has seen a narrower decline of 39% in 2025 so far, with the stock up 217% over the past year. Its market cap is currently at $5.8 billion.
#4: Comparing Analyst Opinions
Overall, analysts have deemed Rigetti stock a 'Strong Buy' with a mean target price of $14.80, which indicates an upside potential of about 62.6% from current levels. Out of five analysts covering the stock, four have a 'Strong Buy' rating and one has a 'Moderate Buy' rating.
While for IonQ, analysts have attributed an overall rating of 'Moderate Buy' with a mean target price of $44.60. This denotes an upside potential of roughly 71% from current levels. Out of five analysts covering the stock, three have a 'Strong Buy' rating, one has a 'Moderate Buy' rating, and one has a 'Hold' rating.