Latest news with #RigettiComputing
Globe and Mail
3 days ago
- Business
- Globe and Mail
This Quantum Computing Stock Soared Over 30% In May. Is It a Buy Now?
Quantum computing stocks are some of the hottest stocks on Wall Street right now, even more so than AI stocks. While AI is still playing out, quantum computing stocks could pay off quickly if their technology becomes viable and mainstream, especially if you buy some pure-play start-ups. One quantum computing stock that soared in May was Rigetti Computing (NASDAQ: RGTI). It rose over 30% during the month, but was up over 50% at one point. Clearly, there's massive interest in Rigetti Computing's stock, but is it worth buying here? 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 » Rigetti Computing is up against some stiff competition Although Rigetti Computing had a great month, it's still down around 40% from its all-time high established in early January. Hype for quantum computing stocks reached an all-time high at the start of the year, so this makes sense, but is there a good reason for it to be down this much? Rigetti Computing is working on a full-stack solution for quantum computing, which means it will deliver customers an entire quantum computing unit ready for use. Rigetti is competing against multiple other start-ups to bring a viable solution to the market, but it's also competing against behemoths in the space, like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). Everyone is racing to solve the same problem: errors. Quantum computing is different than traditional computing. While traditional computing utilizes bits (a 0 or a 1) to transmit information, quantum computing uses qubits. Qubits transmit information as a superposition of an atom, which is best described as the probability of being a 0 or a 1. This makes quantum computing ideal for many tasks that aren't linear calculations, but it also induces some errors. Because qubits don't transmit exactly a 0 or a 1, there is room for interpretation on what answers they give. This is a fundamental problem with quantum computing, and each competitor is trying different ways to solve this issue. Rigetti has developed several chip architectures to reduce errors and currently has about 99% fidelity, which is comparable to most companies competing in this realm. In 2025, it plans to release a four-chip, 36-qubit system that may provide an actual use case in the real world, although widespread quantum computing use is still years away. Rigetti Computing projects that before 2030, the market opportunity for quantum computing will be only $1 billion to $2 billion, mainly driven by various public companies and government research labs. After 2030, it sees demand really picking up, increasing to a $15 billion to $30 billion market opportunity by 2040. This is a long way out, and the question remains: Is it too far out to be seriously investing in Rigetti Computing? Rigetti Computing is a high-risk, high-reward stock Rigetti Computing's stock already has a fair bit of success priced into it. The company trades at a $3.5 billion valuation despite only generating around $9.2 million in contracts. Rigetti is also deeply unprofitable and recently agreed to sell up to $350 million worth of new shares to increase its cash pile and continue its research and development. This shouldn't surprise anyone, but it dilutes existing shareholders by flooding the market with new shares. This isn't the first time Rigetti has done this, and it won't be the last, and investors need to be prepared for more events like this. Furthermore, if Rigetti loses the quantum computing arms race to another competitor, its stock will become worthless. While nobody wants to see an investment go to $0, it's the reality with some of these quantum computing start-ups. That's why I prefer to invest in some of the larger players also competing in the quantum computing arms race, as there's a base business to fall back on if they lose the race. Rigetti Computing isn't a bad stock by any means; it's just a high-risk one. If you want to own shares, then I'd suggest a smaller position size, as that will protect you from it significantly harming your portfolio should it fail. But even a small position size can grow to a massive one if the stock takes off. I'm unsure if Rigetti Computing will be that company, but we won't know the results for a few more years, so I'll probably avoid the stock for now. 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor 's total average return is987% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet 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.
Globe and Mail
3 days ago
- Business
- Globe and Mail
D-Wave Quantum Stock Skyrockets on Real-World Computing Breakthroughs
D-Wave Quantum Inc. QBTS, a prominent player in quantum annealing technologies, drew renewed attention following a series of material advancements across hardware, software and enterprise deployments. The company's strong strategic executions and recent public remarks by CEO Dr. Alan Baratz on quantum supremacy underscore a significant period of technical validation and commercial execution. In a year, the stock has skyrocketed 1281%, significantly outperforming the broader Internet Software industry 's 35.1% rise, the Computer and Technology sector's 10% increase and the S&P 500's 12.3% gains. The company also outperformed other prominent players in quantum computing like Rigetti Computing RGTI and IonQ IONQ, which rose 840.6% and 402%, respectively, during the same period. One-Year Price Comparison D-Wave's Quantum Advantage Across Scientific and Emerging Applications In first-quarter 2025, D-Wave demonstrated quantum supremacy on a real-world problem, with its 1,200-qubit Advantage2 prototype completing a complex magnetic simulation in minutes, a task that would take 1 million years and massive energy on the Frontier supercomputer. This marked a significant validation of D-Wave's quantum annealing capabilities. At the same time, D-Wave advanced its full-scale Advantage2 system (4,400+ qubits), featuring doubled coherence time, higher energy scale and improved qubit connectivity—key enhancements for solving complex optimization and AI problems. The company also introduced a Proof of Quantum Work model, showing how quantum computing can cut blockchain energy use by up to 1,000x while enhancing security, highlighting new opportunities in fintech, digital identity and distributed systems. QBTS Ahead of RGTI and IONQ D-Wave is currently ahead of Rigetti and IonQ in delivering real-world value through quantum computing. Unlike its peers, D-Wave's quantum annealing technology has achieved demonstrated performance at scale. Its 1,200-qubit Advantage2 prototype recently completed a complex magnetic simulation in minutes, something estimated to take one million years on the world's most advanced classical supercomputer. This demonstration of quantum supremacy on a practical problem sets D-Wave apart as the only company to date with such proof. Moreover, D-Wave is actively supporting commercial production use cases. Companies like Ford Otosan, NTT DOCOMO, and Japan Tobacco are already leveraging their systems to optimize manufacturing, telecom operations, and drug discovery processes. The Advantage2 system, with over 4,400 qubits, enhanced coherence time, and high qubit connectivity, builds on this momentum with significant hardware maturity. In contrast, Rigetti and IonQ remain in earlier stages, with smaller-scale systems and limited evidence of sustained customer deployment in operational environments. Estimates for D-Wave The Zacks Consensus Estimate for D-Wave's 2025 earnings implies a 72% improvement year over year. D-Wave Quantum currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> 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 IonQ, Inc. (IONQ): Free Stock Analysis Report Rigetti Computing, Inc. (RGTI): Free Stock Analysis Report D-Wave Quantum Inc. (QBTS): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
3 days ago
- Business
- Yahoo
This Quantum Computing Stock Soared Over 30% In May. Is It a Buy Now?
Rigetti Computing is a popular quantum computing stock. The stock commonly rises and falls dramatically. 10 stocks we like better than Rigetti Computing › Quantum computing stocks are some of the hottest stocks on Wall Street right now, even more so than AI stocks. While AI is still playing out, quantum computing stocks could pay off quickly if their technology becomes viable and mainstream, especially if you buy some pure-play start-ups. One quantum computing stock that soared in May was Rigetti Computing (NASDAQ: RGTI). It rose over 30% during the month, but was up over 50% at one point. Clearly, there's massive interest in Rigetti Computing's stock, but is it worth buying here? Although Rigetti Computing had a great month, it's still down around 40% from its all-time high established in early January. Hype for quantum computing stocks reached an all-time high at the start of the year, so this makes sense, but is there a good reason for it to be down this much? Rigetti Computing is working on a full-stack solution for quantum computing, which means it will deliver customers an entire quantum computing unit ready for use. Rigetti is competing against multiple other start-ups to bring a viable solution to the market, but it's also competing against behemoths in the space, like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Everyone is racing to solve the same problem: errors. Quantum computing is different than traditional computing. While traditional computing utilizes bits (a 0 or a 1) to transmit information, quantum computing uses qubits. Qubits transmit information as a superposition of an atom, which is best described as the probability of being a 0 or a 1. This makes quantum computing ideal for many tasks that aren't linear calculations, but it also induces some errors. Because qubits don't transmit exactly a 0 or a 1, there is room for interpretation on what answers they give. This is a fundamental problem with quantum computing, and each competitor is trying different ways to solve this issue. Rigetti has developed several chip architectures to reduce errors and currently has about 99% fidelity, which is comparable to most companies competing in this realm. In 2025, it plans to release a four-chip, 36-qubit system that may provide an actual use case in the real world, although widespread quantum computing use is still years away. Rigetti Computing projects that before 2030, the market opportunity for quantum computing will be only $1 billion to $2 billion, mainly driven by various public companies and government research labs. After 2030, it sees demand really picking up, increasing to a $15 billion to $30 billion market opportunity by 2040. This is a long way out, and the question remains: Is it too far out to be seriously investing in Rigetti Computing? Rigetti Computing's stock already has a fair bit of success priced into it. The company trades at a $3.5 billion valuation despite only generating around $9.2 million in contracts. Rigetti is also deeply unprofitable and recently agreed to sell up to $350 million worth of new shares to increase its cash pile and continue its research and development. This shouldn't surprise anyone, but it dilutes existing shareholders by flooding the market with new shares. This isn't the first time Rigetti has done this, and it won't be the last, and investors need to be prepared for more events like this. Furthermore, if Rigetti loses the quantum computing arms race to another competitor, its stock will become worthless. While nobody wants to see an investment go to $0, it's the reality with some of these quantum computing start-ups. That's why I prefer to invest in some of the larger players also competing in the quantum computing arms race, as there's a base business to fall back on if they lose the race. Rigetti Computing isn't a bad stock by any means; it's just a high-risk one. If you want to own shares, then I'd suggest a smaller position size, as that will protect you from it significantly harming your portfolio should it fail. But even a small position size can grow to a massive one if the stock takes off. I'm unsure if Rigetti Computing will be that company, but we won't know the results for a few more years, so I'll probably avoid the stock for now. 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% 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 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet 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. This Quantum Computing Stock Soared Over 30% In May. Is It a Buy Now? 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
Forbes
3 days ago
- Business
- Forbes
RGTI Stock: What's Next After An 1,100% Rally?
Rigetti Computing (NASDAQ: RGTI) has emerged as a standout performer in the quantum computing sector, with its stock price surging a remarkable 1,080% over the past twelve months. This extraordinary growth reflects the mounting excitement around quantum computing technology and its potential to transform multiple industries. The fundamental appeal of quantum computing lies in its departure from traditional binary computing systems. While conventional computers process information using bits that exist in either zero or one states, quantum computers utilize qubits that can exist in multiple states simultaneously. This quantum superposition enables these systems to perform complex calculations and process vast datasets by exploring numerous potential outcomes concurrently. The practical applications span diverse sectors including financial modeling, drug discovery, and materials science. However, the technology faces a critical challenge: error rates increase proportionally with system complexity and higher qubit counts. This inherent volatility is characteristic of emerging technologies but represents a significant hurdle for widespread adoption. Despite these challenges, the quantum computing industry has achieved notable milestones. Major technology companies including Google, IBM, and Rigetti have successfully demonstrated scalable quantum systems with dozens of qubits, marking crucial progress toward practical applications. IBM leads the field with its 1,121-qubit Condor processor and ambitious plans to develop 100,000-qubit systems by 2033. Now, for investors looking for potential gains with less volatility, the High Quality portfolio has comfortably outperformed the S&P 500, delivering over 91% returns since inception. Separately, see – Is CRWD Stock Overvalued At $460? Rigetti distinguishes itself in the quantum computing field by utilizing superconducting qubits, specifically tunable transmons. These are controlled by microwave pulses at extremely low temperatures within dilution refrigerators. Their Ankaa-class architecture uses a square lattice of qubits and tunable couplers to enable high-fidelity two-qubit operations. Rigetti's product strategy includes both entry-level and advanced quantum processing units: Rigetti plans to develop a 100-qubit system by the end of the year. These systems prioritize achieving high two-qubit gate fidelity rates exceeding 99%, a crucial factor for practical quantum error correction. Rigetti's technology is accessible through its Quantum Cloud Services platform and partnerships with major cloud providers like Amazon Braket and Microsoft Azure. While Rigetti's technological achievements are impressive, the financial picture reveals the early-stage nature of the quantum computing market. The company generated only $9.2 million in revenue over the last twelve months while reporting an operating loss of $74 million during the same period. These figures underscore that quantum computing remains primarily in the developmental phase rather than widespread commercial deployment. The stock's performance history illustrates the inherent volatility of emerging technology investments. During the 2022 inflation shock, RGTI's value plummeted 96% compared to the S&P 500's peak-to-trough decline of 25.4%. This dramatic differential demonstrates the heightened risk associated with quantum computing stocks during adverse market conditions. Rigetti represents a classic high-risk, high-reward investment opportunity within the quantum computing sector. The company's future trajectory depends heavily on continued technological breakthroughs and effective cost management. Success in scaling quantum computer production could drive significant stock appreciation, making RGTI essentially a bet on both quantum computing's future potential and Rigetti's ability to capture market share. The company has established relationships with notable clients including NASA, Phasecraft, and Standard Chartered, providing some validation of its technology's commercial viability. As quantum computing technology continues advancing, improved accuracy and broader industry adoption should benefit established players like Rigetti. However, investors must weigh these opportunities against substantial risks. The technology remains experimental, competition from well-funded giants like IBM and Google is intense, and the timeline for widespread commercial adoption remains uncertain. There always remains a meaningful risk when investing in stocks that are far from widespread commercial deployment. Consider Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Yahoo
4 days ago
- Business
- Yahoo
Is Now a Good Time to Buy Quantum Computing Stocks? History Suggests What Could Happen Next.
Quantum computing has emerged as one of the hottest areas in the artificial intelligence (AI) realm. While IonQ, Rigetti, and D-Wave Quantum all have momentum fueling their share prices, valuation trends suggest that these stocks may be in a bubble. History suggests that a precipitous sell-off could be in store for emerging companies fueling the quantum computing opportunity. 10 stocks we like better than Rigetti Computing › While there have been fleeting moments of euphoria in the stock market in 2025, it's been a pretty tough year overall. One particular area that has managed to outmaneuver this year's volatility, however, is quantum computing. As of the closing bell on May 27, the Defiance Quantum ETF had returned approximately 8% so far t his year -- handily outperforming the returns of the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. Given those dynamics, investors might be tempted to start buying quantum computing stocks right now. Among the most popular names fueling the gains in the Defiance Quantum exchange-traded fund are IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), and D-Wave Quantum (NYSE: QBTS). Let's assess what is fueling the excitement around quantum computing at the moment. From there, I'll dig into valuation trends for the companies referenced above to help determine if now is a good opportunity to own these market-beating stocks. While artificial intelligence (AI) has become a megatrend fueling the stock market to new highs over the last couple of years, I would argue that there is a finite number of end markets contributing to the industry's popularity. What I mean by that is that within the AI realm, areas such as semiconductors, cloud computing, and enterprise software seem to fetch the most enthusiasm. I think this is why chip stocks such as Nvidia, software players like Palantir Technologies, and cloud hyperscalers Microsoft, Amazon, and Alphabet have consistently remained high-profile names pushing the AI narrative forward. In my eyes, investors may be getting a little tired of seeing the same names affiliated with AI opportunities. Perhaps this is why quantum computing -- which can complete mathematical calculations exponentially faster than existing methods of computing -- has started to emerge as a potential "next big thing" in the AI landscape. Despite little commercial scale, the total addressable market (TAM) for quantum computing is expected to be in the hundreds of billions of dollars, according to estimates compiled by management consulting firm McKinsey & Company. The chart below illustrates the price-to-sales (P/S) ratio for IonQ, Rigetti Computing, and D-Wave Quantum over the past year. The most obvious takeaway from these trends is that the soaring share prices have resulted in pronounced levels of valuation expansion. But considering how game-changing quantum computing might be for the AI movement, shouldn't investors look past these valuation multiples? Unfortunately, I think the answer to that is a hard "no." To add some context to the multiples above, consider that the P/S ratios of Amazon and Cisco topped out between 30 and 40 during the peak days of the dot-com bubble. When you assess IonQ and its peers through that lens, the P/S levels above look unsustainable. Below, investors can see that over the past two decades, the P/S ratios for Cisco, Amazon, and even Nvidia have compressed considerably. These dynamics make sense. As businesses mature and diversify their products and services, they (hopefully) achieve a path to consistent profitability and begin to be valued based on earnings and cash flow as opposed to revenue. What makes investing in IonQ, Rigetti, and D-Wave Quantum riskier than, say, Amazon and Cisco 20 years ago or Nvidia right now, is that, collectively, these quantum computing companies are only generating tens of millions in revenue while burning hundreds of millions of dollars annually. A financial profile like that makes reaching profitability and scaling a business an uphill battle. While history is not guaranteed to repeat itself, I think it is highly likely that shares of IonQ, Rigetti, and D-Wave will begin to witness some pressure sooner than later. As a result, there could be extreme levels of compression in valuation multiples. Ultimately, I think the quantum computing stocks I've talked about here are speculative. They're geared more for day traders and less appealing for investors with a long-run horizon. I would pass on IonQ, Rigetti, and D-Wave Quantum and prefer to continue investing in megacap technology stocks going forward. Their diversified business models are more appealing and provide them with the financial flexibility to explore quantum computing if they choose to do so down the road. 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% 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 2, 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. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, Microsoft, Nvidia, and Palantir Technologies. 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 Now a Good Time to Buy Quantum Computing Stocks? History Suggests What Could Happen Next. 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
