Core Viewpoint - Rigetti Computing and CoreWeave are identified as high-risk, high-reward investment opportunities in the quantum computing and AI sectors respectively [1][17] Rigetti Computing - Rigetti's stock has increased by over 970% in the past 12 months, indicating significant market interest [2] - The company offers quantum processing units (QPUs), full quantum systems, and a cloud-based platform for quantum applications, positioning itself as a comprehensive provider in the quantum computing space [4] - Rigetti's revenue is projected to grow at a compound annual rate of 52% from $10.8 million in 2024 to $37.7 million in 2027, despite a decline in revenue of 8% in 2023 and 10% in 2024 [9][10] - The company has a market cap of $3.3 billion and trades at 87 times its estimated sales for 2027, raising concerns about its high valuation [11] - Major clients include the Superconducting Quantum Materials and Systems Center and the Air Force Research Lab, with recent product launches including a 9-qubit Novera QPU and an 84-qubit Ankaa 3 quantum system [8] CoreWeave - CoreWeave's stock has surged approximately 250% since its IPO in March, reflecting strong growth in the AI sector [2] - The company transitioned from Ethereum mining to AI tasks, significantly expanding its infrastructure with a $100 million purchase of Nvidia's H100 GPUs [12] - CoreWeave's revenue is expected to grow at a compound annual rate of 105% from $1.92 billion in 2024 to $16.55 billion in 2027, despite a widening net loss from $31 million in 2022 to $863 million in 2024 [14][15] - With a market cap of $67.3 billion, CoreWeave trades at 4 times its estimated sales for 2027, suggesting a more reasonable valuation compared to Rigetti [16] Comparative Analysis - While Rigetti has potential in the expanding quantum computing market, its business remains unstable and is trading at inflated valuations, making it a riskier investment [17] - CoreWeave, on the other hand, is experiencing faster growth and has more reasonable valuations, positioning it as a more attractive investment option in the current market [17]

Core Insights - Rigetti Computing (RGTI) has entered a strategic collaboration with Quanta Computer, involving a $35 million equity investment and a commitment of over $100 million each over five years for joint development in quantum computing technologies [1][6] Group 1: Partnership Details - The partnership aims to accelerate the commercialization of superconducting quantum processors, focusing on scalable and fault-tolerant systems for academic, enterprise, and government sectors [1][2] - Rigetti will leverage Quanta's manufacturing scale and operational infrastructure to transition from research-stage prototypes to commercially viable quantum computing systems [2][6] Group 2: Market Position and Performance - Rigetti's shares have decreased by 22.6% year-to-date, contrasting with the industry's growth of 10.5% [5] - The company has a price-to-book ratio of 16.38, which is above the industry average, and carries a Value Score of F [7] Group 3: Earnings Estimates - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates a significant 86.1% rise compared to the previous year [8] - Current estimates for the upcoming quarters show a projected EPS of -0.06 for the current quarter and -0.05 for the current year, with a year-over-year growth estimate of 86.11% [9]

Core Insights - Rigetti Computing has experienced a stock price increase of 1,080% over the past year, highlighting the growing interest in quantum computing technology and its transformative potential across various industries [1] Industry Overview - Quantum computing differs fundamentally from traditional computing by using qubits, which can exist in multiple states simultaneously, allowing for complex calculations and processing of large datasets [2] - The technology has practical applications in sectors such as financial modeling, drug discovery, and materials science, but faces challenges with increasing error rates as system complexity rises [3] Company Technology and Product Portfolio - Rigetti utilizes superconducting qubits, specifically tunable transmons, controlled by microwave pulses at low temperatures, and employs an Ankaa-class architecture for high-fidelity operations [5] - The company plans to develop a 100-qubit system by the end of the year, focusing on achieving high two-qubit gate fidelity rates exceeding 99% [6] - Rigetti's product offerings include the Novera QPU with a 9-qubit processor, the Ankaa-2 with 84 qubits, and the Ankaa-3, which features significant hardware improvements [7] Financial Performance - Rigetti generated $9.2 million in revenue over the last twelve months but reported an operating loss of $74 million, indicating the early-stage nature of the quantum computing market [7] - The stock has shown significant volatility, with a 96% decline during the 2022 inflation shock, compared to a 25.4% decline in the S&P 500 [8] Investment Outlook - Rigetti represents a high-risk, high-reward investment opportunity, with its future dependent on technological advancements and effective cost management [9] - The company has established relationships with clients like NASA and Standard Chartered, which may validate its technology's commercial viability [10]

Industry Overview - Quantum computing stocks are currently among the hottest on Wall Street, surpassing even AI stocks in interest [1] - The potential for rapid returns exists if quantum computing technology becomes viable and mainstream [1] Company Analysis: Rigetti Computing - Rigetti Computing's stock rose over 30% in May, peaking at over 50% increase during the month, indicating strong market interest [2] - Despite the recent gains, Rigetti's stock is down approximately 40% from its all-time high in early January, reflecting the volatility and hype surrounding quantum computing stocks [4] - The company is developing a full-stack quantum computing solution, competing against both start-ups and major players like Microsoft and Alphabet [4] - Rigetti has achieved about 99% fidelity in its chip architectures, which is competitive within the industry [6] - The company plans to release a four-chip, 36-qubit system by 2025, although widespread adoption of quantum computing is still years away [6] Market Opportunity - Rigetti projects a market opportunity for quantum computing of $1 billion to $2 billion before 2030, with significant growth expected to $15 billion to $30 billion by 2040 [7] - The long-term nature of this market opportunity raises questions about the timing for serious investments in Rigetti [7] Financial Position - Rigetti's current valuation stands at $3.5 billion, despite generating only around $9.2 million in contracts, indicating a high-risk investment profile [7] - The company is unprofitable and has agreed to sell up to $350 million in new shares to bolster its cash reserves for research and development [7][8] - The issuance of new shares dilutes existing shareholders, a recurring issue for Rigetti [8] Investment Considerations - Rigetti Computing is characterized as a high-risk, high-reward stock, with significant success already priced into its valuation [7][10] - Investors may consider smaller position sizes to mitigate potential losses while still allowing for growth if the stock performs well [10] - The uncertainty surrounding Rigetti's future performance suggests a cautious approach to investment in the company at this time [10]

Quantum computing stocks such as IonQ, Rigetti Computing, and D-Wave Quantum are crushing the broader market right now. 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 ...

Core Insights - Rigetti Computing has seen its shares increase by over 1,249% in the last 12 months, highlighting the potential for significant returns in the tech sector, particularly in quantum computing [1] - The company is positioned in the emerging quantum computing market, which is expected to have vast economic implications, potentially reaching trillions of dollars [3] Industry Overview - Quantum computing aims to enhance computational power by using qubits instead of traditional bits, allowing for the rapid solving of complex problems [2] - The technology has potential applications in drug discovery, logistics optimization, and materials science, indicating a broad range of real-world uses [3] Company Strategy - Rigetti plans to monetize its quantum computing capabilities through a "picks-and-shovels" model, providing quantum computing power via a cloud interface accessible by traditional hardware [4] - Recent technological breakthroughs in the industry suggest that mainstream adoption of quantum computing may occur sooner than anticipated [4] Competitive Landscape - Competitors like D-Wave Quantum and Alphabet are making significant advancements, with D-Wave's revenue increasing by 500% year over year, indicating a more successful commercialization strategy [10][11] - Rigetti's stock performance has been influenced by competitors' achievements, but the company faces risks from these better-capitalized rivals [6][8] Financial Performance - In the first quarter, Rigetti's revenue fell by 52% year over year to $1.47 million, while operating losses increased from $16.6 million to $21.6 million due to rising R&D costs [9] - The company's high price-to-sales (P/S) ratio of 341 raises concerns about its valuation amidst significant operational challenges [12]

Core Insights - D-Wave Quantum and Rigetti Computing are both focusing on quantum computing with distinct approaches, one being commercial and the other research-driven [2][15] - D-Wave Quantum has shown significant growth in revenue and operational efficiency, while Rigetti Computing faces challenges with declining revenues [11][15] D-Wave Quantum Highlights - D-Wave Quantum reported a 509% increase in first-quarter 2025 revenues, reaching $15 million, primarily due to the sale of the Advantage2 quantum system [3] - The company achieved a GAAP gross margin of 92.5%, up from 67.3% year-over-year, indicating strong operational leverage [3][4] - D-Wave's net loss narrowed to $5.4 million, the lowest since going public, reflecting improved operational efficiency [4] - The company ended March 2025 with $304.3 million in cash and a debt-to-capital ratio of 12.9%, showcasing a strong liquidity position [5] Rigetti Computing Highlights - Rigetti Computing was selected for Phase A of DARPA's Quantum Benchmarking Initiative, receiving a $1 million award to support scalable quantum computing concepts [8] - The company secured a $5.48 million AFOSR grant to advance chip fabrication technology, aiming to improve superconducting qubit performance [9] - Rigetti received a $35 million equity investment from Quanta Computer, boosting its cash position to $237.7 million [10] - Despite these funding successes, Rigetti reported a 51% year-over-year decline in first-quarter revenues, indicating weak demand for its quantum solutions [11][15] Comparative Performance - Year-to-date, D-Wave Quantum's stock surged 123.8%, outperforming the broader Internet Software industry and the S&P 500, while Rigetti's stock declined by 8.2% [11] - D-Wave's strong revenue growth and enterprise adoption contrast with Rigetti's projected flat-to-lower revenues for the year, highlighting the latter's ongoing challenges [15]

Core Insights - The article discusses the competitive landscape of quantum computing, focusing on Rigetti Computing and IBM as key players in the industry, highlighting their distinct approaches and market strategies [1][2]. Company Overview - Rigetti Computing is a startup that emphasizes cutting-edge quantum processors and scalable systems, while IBM utilizes its extensive experience to create a comprehensive quantum ecosystem that includes hardware, software, and cloud services [1][2]. - Rigetti's stock has decreased by 8.2% year-to-date, whereas IBM's stock has increased by 17.6% in the same period [3]. Valuation - IBM's price/book ratio is 8.92, which is more attractive compared to Rigetti's 19.43 [5]. Technology - Rigetti's Ankaa-3 system features 84 superconducting qubits with approximately 99.5% two-qubit gate fidelity, and it plans to launch a 36-qubit system in mid-2025, aiming to exceed 100 qubits by year-end [8]. - IBM's 133-qubit Heron processor improves upon its predecessor, and its modular architecture supports interconnecting processors like the 1,121-qubit Condor, forming the backbone of Quantum System Two [9]. Business Model - Rigetti's business model is hardware-focused, monetizing through direct system access and partnerships, targeting niche enterprise and research segments [10]. - IBM's model combines hardware, software, and services, commercializing through cloud access and consulting, with over $1 billion in cumulative quantum revenue [11]. Growth Strategies - Rigetti aims to scale its modular systems and achieve a 108-qubit system by the end of 2025, supported by a $250 million partnership [12]. - IBM's strategy focuses on achieving quantum advantage by 2026, leveraging its global infrastructure and enterprise partnerships [13]. Financial Estimates - The Zacks Consensus Estimate for Rigetti's 2025 sales indicates an 18.63% year-over-year decline, while IBM's estimates imply a 5.5% growth [14][15]. - Rigetti's projected loss per share for 2025 is 5 cents, compared to IBM's earnings estimate of $10.95 per share [14][16]. Investment Outlook - IBM holds a Zacks Rank 3 (Hold) with a strong Growth Score of 'A', while Rigetti has a Zacks Rank 4 (Sell) but a Growth Score of 'B', indicating potential upside [16][17]. - IBM's full-stack capabilities and enterprise reach provide a more stable investment option compared to Rigetti's innovative but smaller-scale approach [17].

Core Insights - Quantum computing is emerging as a significant sector, with recent advancements indicating a shift towards general availability and increased investor interest [3][10] - Companies like D-Wave Quantum Inc and IonQ Inc are leading the charge, with IonQ's CEO comparing the company to Nvidia in the tech space [3][4] - The recent performance of quantum stocks, including a 56% increase for D-Wave and a 31% increase for IonQ, highlights the potential for substantial returns in this market [3][8] Company Developments - D-Wave Quantum Inc announced that its advanced quantum computer is now available for governments and research institutions, marking a milestone for the sector [3] - IonQ Inc's stock has seen significant growth, trading at $45.69 after being identified as a penny stock in 2022, showcasing its rapid ascent [3][8] - Rigetti Computing Inc has also gained attention, with a notable increase in stock price following a recommendation based on Expectational Analysis [4][8] Investment Strategies - The Grand Slam Countdown service recommends out-of-the-money vertical debit spreads on stocks expected to move strongly, utilizing a combination of technical, sentiment, and fundamental analysis [5] - Rigetti's stock had a significant short interest, with 24% of its float sold short, indicating potential for a short squeeze and price increase [7] - A recent trade involving Rigetti resulted in a 300% profit for subscribers within four trading days, demonstrating the effectiveness of the trading strategy [8] Market Conditions - The quantum computing sector is currently in an 'overbought' territory, suggesting that while the technology has long-term potential, short-term sustainability may be challenging [10] - The market's recent volatility and corrections indicate a need for cautious optimism among investors in the quantum computing space [10][11]

Core Insights - Quantum computing is poised to unlock trillions of dollars in value by 2040, with its ability to solve complex problems much faster than traditional computers [1] - Recent advancements in qubit stability and error correction are bringing quantum computing closer to mainstream commercial use, with potential transformative impacts across various sectors [2] Company Summaries - **Amazon (AMZN)** is leveraging its AWS cloud infrastructure to democratize quantum computing through Braket, potentially creating a new multibillion-dollar revenue stream as it becomes a go-to quantum cloud provider [5] - **Alphabet (GOOGL)** continues to advance its quantum efforts with the Willow chip, which shows significant improvements in error reduction, positioning the company to commercialize breakthroughs that could transform its core businesses [6][7] - **IBM (IBM)** leads in enterprise quantum computing with over 60 quantum systems deployed globally and a comprehensive software platform, giving it a first-mover advantage in capturing corporate quantum spending [8] - **Microsoft (MSFT)** is pursuing a topological qubit approach and building a comprehensive Azure Quantum ecosystem, which could lock in corporate customers for decades [9] - **D-Wave Quantum (QBTS)** focuses on quantum annealing systems that generate revenue today, positioning itself as a near-term winner in commercial quantum computing [10] - **IonQ (IONQ)** develops trapped ion quantum computers with superior qubit connectivity, demonstrating real-world applications and offering direct exposure to quantum computing's growth potential [11] - **Rigetti Computing (RGTI)** provides end-to-end quantum solutions and controls its technology stack, combining startup agility with the necessary vertical integration for commercial viability [12] - **Nvidia (NVDA)** powers quantum computing through its CUDA-Q platform, enabling significant speedups for quantum simulations and ensuring profitability from quantum breakthroughs regardless of hardware approach [13][14]