Latest news with #Rigetti
Business Insider
6 hours ago
- Business
- Business Insider
Rigetti and IonQ: David Williams Selects the Best Quantum Computing Stocks to Buy
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. Confident Investing Starts Here: 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 ) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
15 hours ago
- Business
- Yahoo
Rigetti Computing (NasdaqCM:RGTI) Reports Turnaround With Strong Quarterly Earnings
Rigetti Computing has seen a remarkable 76% price increase over the last quarter, a period marked by significant financial and strategic events. The announcement of strong quarterly earnings, with a net income turnaround from a previous loss, has likely bolstered investor confidence. Rigetti's collaboration with QphoX B.V. and the National Quantum Computing Centre accentuates its innovation in the quantum field. Furthermore, completing a private placement supports its financial health. While the broader market displayed mixed trends due to economic policies and tech sector developments, Rigetti's advancements were likely key contributors to its robust share price gain. We've discovered 4 weaknesses for Rigetti Computing (1 is a bit unpleasant!) that you should be aware of before investing here. Outshine the giants: these 26 early-stage AI stocks could fund your retirement. Rigetti Computing has delivered a very large total return of 1,235.85% over the past year, offering context to the recent 76% quarterly share price surge. This significant one-year performance surpasses the 11.5% return from the overall US market and the 9.1% return of the US Semiconductor industry, indicating robust investor confidence. Despite facing challenges in profitability, Rigetti's expanding collaborations and the successful launch of its Ankaa-3 System position its earnings and revenue growth prospects favorably. Notably, the forecasted 41.3% annual growth in revenue highlights potential strength despite current unprofitability. Regarding the price target, Rigetti's current share price offers only a 4.52% discount compared to the analyst consensus target of US$14.80. This suggests that the recent price increase may have closed the gap toward its perceived fair value. Financial transactions, such as the private placement raising approximately US$35 million, have further fortified Rigetti's financial positioning. These developments, combined with industry advancements and an active role in specialized quantum computing projects, may influence future market perceptions and investor sentiment. Our valuation report unveils the possibility Rigetti Computing's shares may be trading at a premium. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqCM:RGTI. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
2 days ago
- Business
- Yahoo
Rigetti Founder Launches New Quantum Firm to Boost AI
Chad Rigetti says his new startup, Sygaldry, will stand out from competitors in the quantum space because those rivals formed their business roadmaps years before AI was widely adopted. Rigetti speaks about his Y Combinator backed company with Caroline Hyde and Ed Ludlow on "Bloomberg Technology." 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
3 days ago
- Business
- Yahoo
Rigetti vs. IBM: Which Quantum Computing Stock Has Better Prospects?
As quantum computing inches closer to practical, real-world applications, investors are turning their attention to the companies leading the charge in this transformative technology. Rigetti Computing RGTI and International Business Machines Corporation IBM are two prominent players in the quantum space, each with distinct approaches and advantages. Rigetti, a nimble startup, focuses on building cutting-edge quantum processors and scalable systems, while IBM leverages its decades-long expertise and vast resources to develop a comprehensive quantum ecosystem that integrates hardware, software, and cloud services. Both companies are rapidly expanding their quantum capabilities and securing partnerships with governments, research institutions, and enterprises eager to use quantum power. As the quantum computing market shifts from experimental research to commercial use, this faceoff compares Rigetti and IBM on technology, business models, and growth strategies, helping investors identify which stock offers better long-term upside in the emerging quantum era. Shares of Rigetti have plunged 8.2%, while IBM stock has gained 17.6% in the year-to-date period. Image Source: Zacks Investment Research From a valuation standpoint, IBM looks more attractive than RGTI. According to the price/book ratio, IBM's shares currently trade at 8.92, lower than 19.43 for Rigetti. Image Source: Zacks Investment Research Rigetti uses a modular quantum architecture that scales by linking smaller chips. Its latest Ankaa-3 system features 84 superconducting qubits with approximately 99.5% two-qubit gate fidelity, enabled by its proprietary ABAA process. Rigetti emphasizes AI-assisted calibration and error reduction to boost performance. It plans to launch a 36-qubit system in mid-2025 and exceed 100 qubits by year-end. Though innovative, its systems remain smaller in scale compared to industry leaders. IBM deploys a highly integrated quantum stack, led by its 133-qubit Heron processor, which improves error rates and reduces crosstalk over its Eagle predecessor. Its modular architecture supports interconnecting processors like the 1,121-qubit Condor, forming the backbone of Quantum System Two for scalable hybrid computing. With strong cloud integration, global infrastructure, and developer support via Qiskit, IBM remains a leader in practical, scalable quantum technology. Rigetti adopts a focused, hardware-first business model tailored to quantum computing, centered around its proprietary modular chip architecture and cloud-based Quantum Cloud Services. It monetizes through direct system access, strategic partnerships, and integration with platforms like Amazon Braket and Azure Quantum. Rigetti targets niche enterprise and research segments, offering flexible deployment and AI-assisted system calibration. In contrast, IBM leverages its vast resources to deliver a full-stack quantum computing model, combining hardware, software (Qiskit), and services under the IBM Quantum Platform. It commercializes through cloud access, consulting, and its 280+ member IBM Quantum Network, which includes Fortune 500 firms and academic institutions. With over $1 billion in cumulative quantum revenue and multi-billion-dollar R&D investments, IBM's business model emphasizes ecosystem dominance, global infrastructure, and long-term enterprise integration. Rigetti's growth strategy centers on scaling modular quantum systems, advancing hardware via ABAA fabrication and AI calibration, and targeting a 108-qubit system by the end of 2025 with halved error rates. It is expanding manufacturing through a $250M Quanta partnership and boosting cloud integration to widen access. While innovation-driven and agile, the strategy is limited by financial constraints and a smaller customer base. IBM's growth strategy focuses on quantum-centric supercomputing via a long-term roadmap, interconnecting modular chips like the 1,121-qubit Condor to achieve fault tolerance. It targets quantum advantage by 2026 through efforts like the '100×100 challenge' and Quantum System Two. Leveraging global infrastructure, enterprise partnerships, and strong R&D funding, IBM prioritizes scalability, reliability, and commercial adoption worldwide. The Zacks Consensus Estimate for RGTI's 2025 sales implies a year-over-year decline of 18.63%. For 2025, loss per share is projected to be 5 cents compared with 36 cents a year ago. The earnings estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for IBM's 2025 sales and earnings implies year-over-year growth of 5.5% and 6%, respectively. The earnings estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research Both Rigetti and IBM are advancing in the quantum computing space, but they differ significantly in scale, strategy, and market positioning. IBM holds a Zacks Rank #3 (Hold) with a strong Growth Score of 'A', reflecting solid potential driven by its expansive infrastructure, global partnerships, and ambitious quantum roadmap. Rigetti, on the other hand, carries a Zacks Rank #4 (Sell), indicating a challenging short-term prospect. However, its Growth score of 'B' reflects upside potential once the challenges subside. While Rigetti remains a compelling small-cap innovator with modular architecture and technical focus, IBM's full-stack capabilities and enterprise reach give it an edge for investors seeking more stability and long-term commercial traction in the quantum sector. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
Rigetti vs. IBM: Which Quantum Computing Stock Has Better Prospects?
As quantum computing inches closer to practical, real-world applications, investors are turning their attention to the companies leading the charge in this transformative technology. Rigetti Computing RGTI and International Business Machines Corporation IBM are two prominent players in the quantum space, each with distinct approaches and advantages. Rigetti, a nimble startup, focuses on building cutting-edge quantum processors and scalable systems, while IBM leverages its decades-long expertise and vast resources to develop a comprehensive quantum ecosystem that integrates hardware, software, and cloud services. Both companies are rapidly expanding their quantum capabilities and securing partnerships with governments, research institutions, and enterprises eager to use quantum power. As the quantum computing market shifts from experimental research to commercial use, this faceoff compares Rigetti and IBM on technology, business models, and growth strategies, helping investors identify which stock offers better long-term upside in the emerging quantum era. Shares of Rigetti have plunged 8.2%, while IBM stock has gained 17.6% in the year-to-date period. Image Source: Zacks Investment Research From a valuation standpoint, IBM looks more attractive than RGTI. According to the price/book ratio, IBM's shares currently trade at 8.92, lower than 19.43 for Rigetti. Image Source: Zacks Investment Research Rigetti uses a modular quantum architecture that scales by linking smaller chips. Its latest Ankaa-3 system features 84 superconducting qubits with approximately 99.5% two-qubit gate fidelity, enabled by its proprietary ABAA process. Rigetti emphasizes AI-assisted calibration and error reduction to boost performance. It plans to launch a 36-qubit system in mid-2025 and exceed 100 qubits by year-end. Though innovative, its systems remain smaller in scale compared to industry leaders. IBM deploys a highly integrated quantum stack, led by its 133-qubit Heron processor, which improves error rates and reduces crosstalk over its Eagle predecessor. Its modular architecture supports interconnecting processors like the 1,121-qubit Condor, forming the backbone of Quantum System Two for scalable hybrid computing. With strong cloud integration, global infrastructure, and developer support via Qiskit, IBM remains a leader in practical, scalable quantum technology. Rigetti adopts a focused, hardware-first business model tailored to quantum computing, centered around its proprietary modular chip architecture and cloud-based Quantum Cloud Services. It monetizes through direct system access, strategic partnerships, and integration with platforms like Amazon Braket and Azure Quantum. Rigetti targets niche enterprise and research segments, offering flexible deployment and AI-assisted system calibration. In contrast, IBM leverages its vast resources to deliver a full-stack quantum computing model, combining hardware, software (Qiskit), and services under the IBM Quantum Platform. It commercializes through cloud access, consulting, and its 280+ member IBM Quantum Network, which includes Fortune 500 firms and academic institutions. With over $1 billion in cumulative quantum revenue and multi-billion-dollar R&D investments, IBM's business model emphasizes ecosystem dominance, global infrastructure, and long-term enterprise integration. Rigetti's growth strategy centers on scaling modular quantum systems, advancing hardware via ABAA fabrication and AI calibration, and targeting a 108-qubit system by the end of 2025 with halved error rates. It is expanding manufacturing through a $250M Quanta partnership and boosting cloud integration to widen access. While innovation-driven and agile, the strategy is limited by financial constraints and a smaller customer base. IBM's growth strategy focuses on quantum-centric supercomputing via a long-term roadmap, interconnecting modular chips like the 1,121-qubit Condor to achieve fault tolerance. It targets quantum advantage by 2026 through efforts like the '100×100 challenge' and Quantum System Two. Leveraging global infrastructure, enterprise partnerships, and strong R&D funding, IBM prioritizes scalability, reliability, and commercial adoption worldwide. The Zacks Consensus Estimate for RGTI's 2025 sales implies a year-over-year decline of 18.63%. For 2025, loss per share is projected to be 5 cents compared with 36 cents a year ago. The earnings estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for IBM's 2025 sales and earnings implies year-over-year growth of 5.5% and 6%, respectively. The earnings estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research Both Rigetti and IBM are advancing in the quantum computing space, but they differ significantly in scale, strategy, and market positioning. IBM holds a Zacks Rank #3 (Hold) with a strong Growth Score of 'A', reflecting solid potential driven by its expansive infrastructure, global partnerships, and ambitious quantum roadmap. Rigetti, on the other hand, carries a Zacks Rank #4 (Sell), indicating a challenging short-term prospect. However, its Growth score of 'B' reflects upside potential once the challenges subside. While Rigetti remains a compelling small-cap innovator with modular architecture and technical focus, IBM's full-stack capabilities and enterprise reach give it an edge for investors seeking more stability and long-term commercial traction in the quantum sector. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
