Latest news with #NoveraQPU
Yahoo
10-06-2025
- Business
- Yahoo
Better Hypergrowth Stock: Rigetti Computing vs. CoreWeave
Rigetti hopes to become a one-stop shop in the quantum computing market. CoreWeave is carving out a high-growth niche with its cloud-based GPU data centers. 10 stocks we like better than Rigetti Computing › Rigetti Computing (NASDAQ: RGTI) and CoreWeave (NASDAQ: CRWV) both look like exciting growth plays for investors who can tolerate a lot of risk. Rigetti is an early mover in the quantum computing market, and CoreWeave is one of the market's fastest-growing artificial intelligence (AI) companies. Over the past 12 months, Rigetti's stock gained more than 970%. CoreWeave, which went public in March, has already soared about 250% from its IPO price of $40. Should you chase either of these high-flying hypergrowth tech stocks today? Rigetti provides quantum processing units (QPUs), full quantum systems, and a cloud-based platform for developing quantum applications. That makes it a one-stop shop for quantum computing solutions, and it has been expanding its menu of offerings with cheaper commercial systems and modular systems that link together multiple systems. Classical computers store and process data in binary bits: zeros and ones. Quantum computers use a different paradigm that takes advantage of the peculiarities of quantum mechanics: They use qubits, which can be ones or zeroes, but can also have values that are probability amplitudes -- complex weighted combinations of those zero and one states. As an investor, you don't need to understand how it works: What matters is that using qubits to process calculations allows quantum computers to quickly get answers to some unusual types of problems that would take years or even centuries for classical supercomputers to solve. The downsides are that quantum computers are bigger, pricier, and consume much more power. Also, because qubits are finicky and fragile, outside interference can flip their states. As a result, today's quantum computers produce errors once every few hundred operations, vastly more often than traditional computers, whose ratios are measured in errors per billion or trillion operations. To make quantum computing technology truly useful, its error rates will have to come down to magnitudes of one in a million or better. Rigetti's big customers include the Superconducting Quantum Materials and Systems Center, the Air Force Research Lab, and the Horizon Quantum Computing in Singapore. Its recent product launches include its smaller 9-qubit Novera QPU for commercial customers and its 84-qubit Ankaa 3 quantum system for government and research clients. It plans to launch a new modular system, which connects four of its 9-qubit systems to create a 36-qubit system, later this year. It aims to launch a non-modular 100-qubit system in 2026. Rigetti's revenue declined by 8% in 2023 and another 10% in 2024, mainly due to its lack of new R&D milestone payments and the uneven timing of payments from its government and research contracts. The company's net loss also widened from $75 million in 2023 to $201 million in 2024. But from 2024 to 2027, analysts expect its revenue to grow at a compound annual rate of 52% from $10.8 million to $37.7 million, and expect it to narrow its net loss to $85.4 million. That acceleration should be driven by more commercial contracts and even more powerful systems. But with a market cap of $3.3 billion currently, Rigetti already trades at 87 times its estimated sales for 2027. It might eventually grow into that valuation if it scales up its business and its quantum systems become more widely adopted for mainstream computing applications, but that valuation bubble could also burst if it fails to meet Wall Street's high expectations. That might be why company insiders sold five times as many shares as they bought over the past 12 months. CoreWeave was founded as an Ethereum-mining business in 2017, but it abandoned that market after the cryptocurrency crash of 2018. The company then repurposed its crypto-mining GPUs (graphics processing units) to power AI tasks on its new cloud infrastructure platform, which it significantly expanded with a $100 million purchase of Nvidia's H100 GPUs in 2022. CoreWeave then leveraged its GPUs as collateral to secure even more funding, and it attracted some big investments from Nvidia, Cisco, and PureStorage. That support helped the company expand from just three AI data centers at the end of 2022 to 33 such locations across the U.S. and Europe today. It claims its dedicated GPU approach makes it roughly 35 times faster and 80% cheaper for tackling AI tasks than traditional cloud platforms, and its top customers already include AI leaders like Microsoft and OpenAI. As CoreWeave opened more data centers to meet the growing demand in the AI space, its revenue surged from $16 million in 2022 to $1.92 billion in 2024. However, its net loss widened from $31 million in 2022 to $863 million in 2024 as it bought and leased more data centers, bought more GPUs from Nvidia, and dealt with higher energy costs. From 2024 to 2027, analysts expect CoreWeave's revenue to soar at a compound annual rate of 105% to $16.55 billion, and expect it to narrow its net loss to $747 million. That's an impressive growth trajectory, but soaring expenses and high debt could throttle long-term expansion. It could also face fresh competition as bigger cloud platforms roll out more dedicated AI services. With a market cap of $67.3 billion, CoreWeave seems more reasonably valued than Rigetti at 4 times its estimated sales for 2027. But when its lockup period expires on Sept. 24, a lot of its insiders could rush to sell and take profits on the high-flying stock. Rigetti might have a bright future as the quantum computing market expands, but its business is still wobbly and it is trading at meme stock valuations. CoreWeave is also risky, but it's growing faster and its valuations look more reasonable. So if I could only pick one of these hypergrowth stocks today, I'd choose CoreWeave. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems, Ethereum, Microsoft, Nvidia, and Pure Storage. The Motley Fool 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. Better Hypergrowth Stock: Rigetti Computing vs. CoreWeave was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
Where Will Rigetti Computing Be in 10 Years?
Rigetti Computing (NASDAQ: RGTI) is a "pure play" quantum computing company that went public by merging with a special purpose acquisition company (SPAC) three years ago. It designs and manufactures its own quantum processing units (QPUs), builds full quantum computing systems, and hosts a cloud platform for developing quantum applications. Rigetti has been a wildly unpredictable stock. It opened at $9.75 per share on the first day after closing its SPAC merger, sank to a record low of $0.38 in May 2023, but now trades at around $8. With a market cap of $2.38 billion, it's already valued at a whopping 170 times this year's sales. Let's look ahead and see if Rigetti can justify its sky-high valuations over the next decade. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Traditional computers still store their data in binary bits of zeros and ones. Quantum computers can store zeros and ones simultaneously in qubits, which allows them to process larger amounts of data at a much faster rate than their binary counterparts. However, quantum computers are still much bigger, pricier, and prone to make more mistakes than binary computers. As a result, these systems are still mainly used by government and research institutions for niche purposes. Alphabet's CEO, Sundar Pichai, recently predicted it would take at least five to 10 years for "practically useful" quantum computers to arrive. So, while quantum computing companies like Rigetti aren't generating much revenue yet, some bullish investors believe that investing in them today might be comparable to investing in Nvidia right before the AI boom started in the late 2010s. Rigetti stands out in this nascent market because it's a full-stack quantum computing company that serves as a "one-stop shop" for chips, full systems, and cloud-based services. It aims to make quantum computing more accessible with cheaper commercial systems, modular systems that link together multiple systems, and a robust cloud platform for building quantum apps. In 2024, Rigetti only generated $11 million in revenue while racking up a net loss of $201 million. Its biggest customers include the Superconducting Quantum Materials and Systems Center, the Air Force Research Lab, and the Horizon Quantum Computing in Singapore. For 2025, analysts expect Rigetti's revenue to rise to $14 million as it narrows its net loss to $70 million. That near-term growth should be driven by its Novera QPU, a smaller 9-qubit computer that costs roughly $900,000 and targets commercial customers; its 84-qubit Ankaa-3 quantum computing system for higher-end government and research clients, and the upcoming launch of a modular system which links together four of its 9-qubit chips to create a 36-qubit system. In 2026, it aims to launch a non-modular 100-qubit system. Over the next few years, it plans to launch an even more powerful 336-qubit system. It expects its median gate fidelity, or the rate at which it detects errors, to improve from 99% today to 99.5% in its upcoming systems. To look even further ahead, we should look at a few market estimates. According to Market Research Future, the quantum computing market could still expand at a compound annual growth rate (CAGR) of 28.5% from 2025 to 2035. Metatech Insights expects the market to grow at a CAGR of 28.7% during the same period. We should take those estimates with a grain of salt, but they suggest the earliest and most successful movers will reap massive profits over the next decade. If Rigetti matches Wall Street's forecast of $14 million in revenue in 2025 and grows at a CAGR of 29% over the following 10 years, it would generate $178 million in revenue in 2035. That would be an impressive growth trajectory, but Rigetti is already valued at 13 times the final year's estimate -- so a decade of growth might already be baked into its current market cap. However, those estimates might be too conservative if the quantum computing market actually replicates the AI market's growth trajectory. From fiscal 2015 to fiscal 2025 (which ended this January), Nvidia's revenue grew at a CAGR of 39% as its sales of AI data center GPUs exploded. If Rigetti grows at that same CAGR through 2035, its revenue will reach $384 million by the final year -- and it might seem a bit cheaper (but still expensive) at 6 times that estimate. Rigetti is a tough stock to value because its core market is still in its infancy. If quantum computers fail to crack the mainstream market over the next decade, Rigetti's valuations will quickly collapse. But if the market expands at a faster-than-expected rate, it could blow past analysts' estimates and force them to recalculate its growth potential. I think Rigetti's stock is a bit too hot to handle right now, although it might grow into its valuations if it outlasts its peers in its fragmented industry. Therefore, I'm cautiously optimistic that it can head a little higher over the next decade -- but I don't think it can consistently outperform the S&P 500 until its market becomes more fully developed. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $593,970!* Now, it's worth noting Stock Advisor's total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy. Where Will Rigetti Computing Be in 10 Years? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
Is Rigetti Computing Stock a Buy Now?
Rigetti Computing (NASDAQ: RGTI) has been a tough stock to hold over the past three years. The quantum computing company, which went public by merging with a special purpose acquisition company (SPAC) on March 2, 2022, started trading at $9.75, but eventually closed at a record low of $0.38 per share on May 3, 2023. But on April 2, 2025, Rigetti's stock trades at about $8.50 a share. A $1,000 investment in Rigetti at its all-time low would be worth nearly $22,400 today. Let's see why Rigetti's stock slumped and then soared, and whether it's still worth buying after that impressive recovery. Traditional computers still store and process data in binary bits of zeros and ones. Quantum computers can store fractional values between zeros and ones in "qubits," which allow them to process larger amounts of data at much faster rates. That sounds like a massive leap forward for modern computing, but quantum computers are still much larger, more expensive, and consume more power than top-tier binary computers. They also output a higher ratio of data errors than their binary counterparts. Correcting a large volume of these errors is a key requirement for building truly usable quantum computers. As a result, quantum computers are still generally used for niche research applications. However, newer quantum computing companies like Rigetti Computing want to rectify those issues with faster, cheaper, smaller, and more accurate quantum systems. Rigetti designs and manufactures its own quantum processing units (QPUs), builds full quantum computing systems, and hosts a cloud platform for developing quantum applications. That diverse mix of product and services makes Rigetti a one-stop shop -- or a "full stack" play -- on the nascent quantum computing market. Before it went public, Rigetti claimed its revenue would reach $18 million in 2022, $34 million in 2023, and $73 million in 2024. It also claimed its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would improve from a $39 million loss in 2022 to a smaller $12 million loss in 2024. But in 2024, Rigetti only generated $11 million in revenue and a negative adjusted EBITDA of $49 million. On a generally accepted accounting principles (GAAP) basis, it racked up a whopping net loss of $201 million. That disappointing growth trajectory -- along with rising interest rates and the resignation of its founder Dr. Chad Rigetti from the CEO position in late 2022 -- caused its stock to sink to its all-time low in May 2023. But despite those challenges, Rigetti's stock surged in the second half of 2024 as it rolled out new products and interest rates declined. Dr. Rigetti also stayed aboard to focus on the company's product development after handing the CEO position over to Dr. Subodh Kulkarni, who previously led the 3D-sensing technology company CyberOptics. Last December, Rigetti launched its Novera QPU, a 9-qubit commercial version of its quantum computer, for $900,000. It also launched its first 84-qubit Ankaa-3 quantum computing system, which can detect over 99% of its errors (its "median gate fidelity"), to support its own cloud-based services. Its customers now include big institutions like the Superconducting Quantum Materials and Systems Center, the Air Force Research Lab, and the Horizon Quantum Computing in Singapore. This year, Rigetti aims to launch a modular quantum computing system (which links four of its 9-qubit chips) to create a 36-qubit system with a median gate fidelity of 99.5%. In 2026, it plans to deploy a nonmodular 100-qubit system with a median gate fidelity of 99.5%. Over the next few years, it aims to launch a more powerful 336-qubit system. Assuming Rigetti achieves those ambitious plans to scale up its business, analysts expect its revenue to rise 27% to $14 million in 2025, 140% to $34 million in 2026, and 48% to $50 million in 2027. But with a market cap of $2.23 billion, Rigetti already trades at 45 times its projected sales for 2027. By comparison, industry peer IonQ (NYSE: IONQ) -- which is expected to grow at a faster rate than Rigetti over the next three years -- trades at just 19 times its estimated sales for 2027. Therefore, Rigetti is priced for perfection at these levels -- and it could be tough to deliver perfect results in this messy macroeconomic environment. It could also face tougher competition from big tech giants like Microsoft, Alphabet's Google, and IBM as they ramp up their development of even more powerful quantum computing chips and systems. Moreover, Rigetti has increased its number of outstanding shares by 151% since its public debut with its secondary offerings and stock-based compensation. That dilution should continue as it raises more cash to cover its steep losses. Its insiders are also net sellers who sold nearly four times as many shares as they bought over the past 12 months. Based on these facts, I wouldn't touch Rigetti's stock. It looks too much like a meme stock. Rigetti's price could be cut in half (or more) and still be considered expensive. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 4, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and Microsoft. The Motley Fool 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. Is Rigetti Computing Stock a Buy Now? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than Rigetti Computing 1 Year From Now
Quantum computing stocks are having a moment. Following Alphabet's revelation of its Willow quantum chip in December, quantum computing stocks including Rigetti Computing (NASDAQ: RGTI) soared, and attention has remained on the sector as Microsoft and Nvidia have made their own announcements about quantum computing. Rigetti Computing is still a development-stage company, as it brought in just $10.8 million in revenue in 2024 and an operating loss of $68.5 million. Its revenue also declined by 10% during the year, a sign that investors' hopes for explosive growth are not showing up in the results so far. Rigetti touted a new strategic collaboration with Quanta Computer, and it also made its first QPU (quantum processing unit) sale to an academic institution, selling one of its Novera QPU products to Montana State University. At a market cap of $2.8 billion, Rigetti Computing is pricey for a stock with barely any revenue and negative revenue growth in recent quarters, setting it up for a potential pullback if the excitement around quantum computing fades. With that risk in mind, here are two smaller stocks that look well-positioned to be worth more than Rigetti Computing a year from now. Amplitude (NASDAQ: AMPL) is a cloud software stock that specializes in digital product analytics and optimization, meaning it gives companies the tools to see how customers are using their digital products so they can improve them and increase return on investment. Amplitude's analytics software helped Peloton realize that social interaction was key to member retention. The technology also helped guide Burger King's "Whopper Detour" campaign, which offered customers a Whopper for $0.01 if they downloaded the app near a McDonald's. The company went public near the tail end of the pandemic boom, and the stock plunged in 2022 like a lot of software stocks. However, management has said that post-pandemic-related churn is now behind it, and it expects its growth rate to improve over the coming years. Amplitude is also focused on launching an artificial intelligence (AI) agent, which has the potential to be a game-changer for the company. It would accelerate customer insights and make it easier to find relevant information using a chat interface like ChatGPT. At a market cap of $1.55 billion, Amplitude stock could top Rigetti in another year if Rigetti pulls back, or if Amplitude's AI agent gains significant traction. Homebuilders have had a rough go of it in recent years as the housing market cooled after the pandemic ended, and it has remained soft as mortgage rates are still elevated. However, there's a substantial opportunity for homebuilders like Dream Finders Homes (NYSE: DFH), as there is an estimated shortage of 4 million homes in the country. Dream Finders Homes offers an appealing way to get exposure to the homebuilding sector, as it uses an asset-light business model pioneered by best-in-class homebuilder NVR. Rather than buying land outright, which can add a lot of balance sheet risk, Dream Finders Homes buys land options that it can exercise if it later chooses to build on that land. The company primarily builds homes in the Southeast, and recent results have been promising. In the fourth quarter, revenue jumped 35% to $1.5 billion, and business momentum looked even stronger with 46% net new orders to 1,611. The company also grew with the help of acquisitions, including the regional home builder Crescent Homes and the Jet HomeLoans mortgage loan originator, showing the company has multiple avenues for growth. At a market cap of $2.27 billion, Dream Finders Homes could easily be worth more than Rigetti Computing in another year. If the macro climate improves and mortgage rates start to come down, Dream Finders Homes has the potential to surge, and its asset-light business model should protect the stock from a recession or broader economic weakness. Before you buy stock in Dream Finders Homes, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dream Finders Homes wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,245!* Now, it's worth noting Stock Advisor's total average return is 845% — a market-crushing outperformance compared to 165% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 24, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Dream Finders Homes, Microsoft, NVR, Nvidia, and Peloton Interactive. The Motley Fool recommends Burger King parent Restaurant Brands International 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. Prediction: 2 Stocks That Will Be Worth More Than Rigetti Computing 1 Year From Now was originally published by The Motley Fool
Yahoo
24-03-2025
- Business
- Yahoo
Better Quantum Computing Stock: Rigetti Computing vs. D-Wave Quantum
Quantum computing could make it easier to process massive amounts of information in the near future. Unlike traditional computers, which still store data in binary bits of zeros and ones, quantum computers can store them simultaneously in qubits. That approach enables quantum computers to process data much faster than binary computers, but the ones in operation now are also larger, more expensive, and consume more power while making more mistakes than binary computers. Those shortcomings are preventing quantum computers from being used for mainstream applications, so they're still mainly used for niche research purposes. But over the next few years, companies are working to make quantum computers smaller, less expensive, and more accurate as the technology improves. According to Fortune Business Insights, the quantum computing market could still expand at a compound annual growth rate (CAGR) of 34.8% from 2024 to 2032 -- so this industry's early movers might be future multi-baggers. Two of those early movers, Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum (NYSE: QBTS), saw their stocks surge nearly 470% and 390% over the past 12 months, respectively, as the market attracted a stampede of bulls. But should investors chase either of those high-flying stocks right now? Rigetti designs and manufactures its own quantum processing units (QPUs), builds full quantum computing systems, and hosts a developer-oriented cloud infrastructure platform for quantum computing applications. That vertically integrated approach makes it a "full stack" play on the quantum computing market. It serves big customers like the Superconducting Quantum Materials and Systems Center (SQMS), Air Force Research Lab (AFRL), and Horizon Quantum Computing in Singapore. It launched the Novera QPU, a 9-qubit commercial version of its quantum computer that costs about $900,000, in late 2024. It also recently deployed its first 84-qubit Ankaa-3 quantum computing system, which can detect over 99% of its errors (known as its "median gate fidelity" ratio), to support its cloud-based platform. This year, it plans to launch a new modular quantum computing system that links together four 9-qubit chips to create a 36-qubit system with a median gate fidelity of 99.5%. It also aims to deploy a non-modular system with more than 100 qubits by the end of 2026, and an even more powerful 336-qubit system within the next few years. D-Wave Quantum carved out its niche with its quantum annealing tools, which help organizations optimize their workflow, schedules, supply chains, and logistics networks. It achieves that like an automated efficiency expert that maps out large amounts of data to find the solutions that require the least computing power. It sells both its own hardware and its own cloud-based services through its Leap quantum platform, which can be integrated into larger cloud infrastructure platforms like Amazon Web Services (AWS). It also calibrated its new 4,400-qubit Advantage2 processor -- which solves complex 3D lattice problems 25,000 times faster than its current Advantage processor -- last November. That upgrade could help it optimize its clients' operations much more efficiently. It's already signed on big clients like Deloitte, Mastercard, Lockheed Martin, and Accenture, and it could continue to attract more customers with its focus on using quantum computing for more practical applications. Rigetti and D-Wave both have promising strategies for the quantum computing market, but a lot of that future growth has already been priced into their high-flying shares. Rigetti and D-Wave have enterprise values of $2.83 billion and $3.09 billion, respectively, but this is how much revenue they're expected to generate through 2027. Metric 2025 2026 2027 Rigetti revenue (growth rate) $14.0 million (30%) $33.6 million (140%) $49.7 million (48%) D-Wave revenue (growth rate) $22.4 million (1%) $34.4 million (54%) $72.1 million (109%) Data source: Marketscreener. Note: Dollar figures are estimates and growth rates are year over year. Therefore, Rigetti already trades at 57 times its projected sales for 2027, while D-Wave trades at 43 times that estimate. Investors should also take those estimates with a grain of salt, since the quantum computing market remains in its infancy. Furthermore, both companies are also expected to stay unprofitable for at least the next three years, and they've been severely diluting their existing investors with high stock-based compensation expenses and secondary offerings to raise fresh cash. Over the past 12 months, Rigetti and D-Wave increased their outstanding shares by 73% and 80%, respectively, and that dilution should continue for the foreseeable future. During that past year, Rigetti's insiders sold nearly 4 times as many shares as they bought, but D-Wave's insiders bought 8% more shares than they sold. That warmer insider sentiment suggests D-Wave might have a bit more upside potential. I personally wouldn't buy either of these quantum computing stocks at these sky-high valuations. But if I had to choose one over the other, I'd invest in D-Wave Quantum because its growth is accelerating, its stock is slightly cheaper than Rigetti's, its insiders are still net buyers, and its technology seems better suited for mainstream customers than research institutions. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $721,394!* Now, it's worth noting Stock Advisor's total average return is 839% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 18, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Accenture Plc, Amazon, and Mastercard. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. Better Quantum Computing Stock: Rigetti Computing vs. D-Wave Quantum was originally published by The Motley Fool
