Core Insights - Rigetti Computing, Inc. (NASDAQ:RGTI) is recognized as one of the 12 best performing stocks over the last three months, with a Buy rating reiterated by Craig-Hallum analyst Richard Shannon [1] - The company announced its support for NVQLink, NVIDIA Corporation's new open platform for integrating AI supercomputing with quantum computers [1][2] Group 1: Company Developments - Rigetti Computing showcased its work with NVQLink at the Quantum Computing Pavilion during NVIDIA GTC in Washington, D.C., where attendees witnessed a full-scale demonstration of its quantum computer [2] - NVQLink integrates quantum processors and control systems with NVIDIA's AI supercomputing, facilitating low-latency, high-throughput connectivity between CPUs, GPUs, and quantum processing units [3] - This collaboration aims to accelerate the development of hybrid quantum-classical applications and enhance quantum supercomputers [3] Group 2: Company Overview - Rigetti Computing is a full-stack quantum computing company that develops quantum computing systems and processors, operating quantum computers via the cloud [4] - The company provides services to businesses, governments, and researchers through its Rigetti Quantum Cloud Services platform [4]

Core Insights - Quantum computing stocks, including Rigetti Computing, have experienced significant volatility, with Rigetti rising nearly 250% from September 1 before dropping over 35% from its peak, followed by a rebound due to U.S. government interest in investing in quantum technology [1][2] Company Overview - Rigetti Computing has sold two Novera quantum computing systems recently, totaling $5.7 million, indicating early-stage demand for quantum computers [5][6] - The company is competing in a market with strong competition from both pure-play companies and larger firms like Alphabet, all anticipating that quantum computing will become commercially viable by 2030 [6][7] Industry Trends - The quantum computing industry is still in its infancy, with no commercially viable quantum computers available yet, and most current units being used for research purposes [4] - There is a growing demand for early-stage quantum computers, as evidenced by the sales made by Rigetti, which may suggest the development of a first-mover advantage [6][7]

Quantum computing has the potential to produce some serious stock market winners.Quantum computing has become a hot, fast-moving sector, with various investments made in the field alongside significant technological breakthroughs. This has caused stocks to have massive drops and spikes within the same week, giving investors in this space whiplash.However, many stocks in the quantum computing sector are down around 25% from their all-time highs, leading investors to believe that now would be a great time to ...

Core Insights - Quantum computing is emerging as a significant trend in the investment landscape, rivaling artificial intelligence in investor interest [2][6] - Over the past year, quantum computing stocks such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have experienced substantial price increases, with gains of 262%, 2,810%, 3,060%, and 1,130% respectively [3][9] - Despite the hype, some Wall Street analysts predict that these stocks could lose up to 58% of their value in the coming year based on their price target forecasts [4] Industry Overview - Quantum computing utilizes principles of quantum mechanics to solve complex problems that classical computers struggle with, offering the potential for significant advancements in various fields [6] - Potential applications include drug development through molecular interaction simulations and enhancing AI algorithms, which could lead to faster and more efficient large language models [7] Company Developments - The surge in stock prices for IonQ, Rigetti Computing, and D-Wave Quantum is partly attributed to early-stage adoption by major companies [8] - Amazon and Microsoft dominate the global cloud infrastructure market, with their platforms (AWS and Azure) providing subscription-based quantum cloud computing services that grant access to IonQ's and Rigetti's quantum technologies [10]

Group 1: Market Performance - Quantum computing stocks have seen significant gains since Q3 2024, with Rigetti Computing rising 4,330%, D-Wave Quantum increasing 3,330%, and IonQ climbing 812% [1][7] Group 2: Company Valuations - IonQ has a market cap of $22.4 billion, trading at 303 times trailing sales, with an estimated 2026 revenue of $162 million [4] - D-Wave Quantum has a market cap of $12.6 billion, trading at 335 times trailing sales, with an estimated 2026 revenue of $38.2 million [5] - Rigetti Computing has the highest valuation at 1,111 times trailing sales, with a market cap of $11.5 billion and an estimated 2026 revenue of $21.5 million [6] Group 3: Technology and Market Dynamics - Major technology platforms and government agencies are investing billions in quantum computing, indicating a shift from research to commercialization [7] - Unlike dot-com companies, quantum companies currently have working technology and paying customers [7]

Core Insights - Quantum computing stocks are experiencing volatility as they approach their third-quarter earnings reports, with most companies still unprofitable while striving to advance the technology [1][2] Earnings Expectations - Investors are focusing on revenue growth for quantum computing stocks in Q3, with some also looking for smaller losses [2] - IonQ is expected to report a loss of $0.44 per share, widening from a loss of $0.26 a year earlier, while revenue is projected to grow 5118% to $27 million [3] - D-Wave is anticipated to record a 6-cent loss in Q2, improving from a 10-cent loss a year earlier, with revenue expected to grow 62% to $3 million [3] - Rigetti is expected to post a 5-cent loss in Q3, improving from an 18-cent loss a year earlier, but revenue is predicted to dip 9% to $2.2 million [5] - Quantum Computing is expected to report a 6-cent loss per share, with revenue rising 16% to $100 million [6] Market Dynamics - Quantum computing stocks are volatile due to uncertainties surrounding commercialization and competition from major tech companies like Cisco Systems, which is entering the quantum networking space [7] - As of October 31, 2025, D-Wave stock has increased by 285%, IonQ shares are up 19%, Rigetti has advanced about 121%, while Quantum Computing has pulled back 11% [8] Stock Behavior Metrics - Investors should monitor the average true range (ATR) of quantum computing stocks, which indicates the volatility of stock prices [10] - IonQ has the lowest ATR rating at 9.67%, followed by Rigetti at 13.21%, D-Wave at 14.02%, and Quantum Computing at 11.84% [10]

Core Insights - Valuations are critical in investment decisions, as purchasing stocks at inflated prices can significantly limit future returns [2][3] - Palantir Technologies is highlighted as a stock with an excessively high valuation, trading at a price-to-earnings (P/E) multiple exceeding 600, which is not justified by its financial performance [4][5] - Concerns are growing regarding the sustainability of AI-related spending, which could negatively impact Palantir's stock given its high valuation [6] Company Overview - Palantir Technologies has a market capitalization of $450 billion and provides an AI platform aimed at enhancing decision-making for both government and commercial clients [4] - The company has experienced strong growth, approximately 50%, but faces potential risks if AI spending slows down [6] Valuation Concerns - The current P/E multiple of Palantir is over 600, and even the forward P/E is projected to be above 200 based on analyst expectations [5] - A recent MIT study indicates that 95% of businesses are not seeing significant returns from their AI investments, raising concerns about future growth for companies like Palantir [6] Market Sentiment - The excitement surrounding certain stocks has led to valuations that are considered absurdly high, with some stocks rising over 300% in the past year [7]

Core Viewpoint - Quantum computing stocks, particularly Rigetti Computing and D-Wave Quantum, have seen significant price increases, but analysts believe they are overvalued after substantial gains [1][2]. Rigetti Computing - Rigetti specializes in superconducting quantum computing, utilizing electrical circuits at near absolute zero temperatures to create qubits [3]. - The company has a vertically integrated model, manufacturing processors, designing software, and providing cloud-based services [3]. - Rigetti's gate-based systems are considered to have less immediate commercial value compared to D-Wave's annealing systems, although they may address more complex problems as the technology matures [4]. - In Q2, Rigetti's sales fell 42% to $1.8 million, and the GAAP net loss tripled to $40 million, with operations consuming $30 million in cash year-to-date [5]. - Rigetti's stock trades at an extremely high valuation of 1,253 times sales, suggesting a potential downside of 54% from its current price of $39 [6]. - Analysts have set a target price of $18 per share for Rigetti, indicating a significant downside risk [7]. D-Wave Quantum - D-Wave focuses on superconducting quantum computing and has historically excelled in annealing systems, which are effective for optimization problems [8]. - The company has recently ventured into gate-based systems but lacks vertical integration as it does not manufacture its own processors [9]. - D-Wave's quantum annealing systems currently have more commercial utility than Rigetti's gate-based systems, although scaling gate-based systems remains challenging due to high error rates [9]. - D-Wave reported a 42% increase in revenue to $3.1 billion in Q2, but the non-GAAP net loss was $0.08 per diluted share [10]. - The stock trades at 384 times sales, which, while lower than Rigetti's valuation, is still considered expensive, leading to a plausible downside of 41% from its current price of $34 [11].

Core Insights - The article discusses the potential downturn for quantum computing stocks, highlighting that historical valuation metrics indicate a significant reversal may be imminent for companies like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. [1][4][18] Industry Overview - Quantum computing is emerging as a transformative technology, with applications across various sectors, including drug development and AI optimization [6][10]. - The technology is still in its infancy, and widespread commercialization is not yet evident, suggesting that it may take years for businesses to realize returns on investments in quantum computing [11]. Company Performance - Over the past year, IonQ's stock has increased by 270%, while Rigetti, D-Wave, and Quantum Computing Inc. have seen gains of 3,220%, 3,270%, and 1,340%, respectively [4]. - Current market capitalizations for these companies are significant, with IonQ at $21 billion and Rigetti at $14 billion [8][16]. Valuation Metrics - The price-to-sales (P/S) ratio is identified as a more relevant valuation metric for early-stage companies like those in quantum computing, as traditional price-to-earnings (P/E) ratios are less applicable due to negative earnings [14]. - Historical data shows that leading companies in emerging technologies have peaked at P/S ratios between 31 and 43, while current P/S ratios for quantum computing stocks are projected to be much higher, ranging from 69 to 352 by 2027 [15][17][19]. - This suggests that the current valuations of quantum computing stocks are unsustainable, indicating a potential for significant price corrections in the future [18].

Key Points Generative AI hype is bleeding into new arenas of computer science and technology. Quantum could be years, or even decades, away from practical real-world use cases. 10 stocks we like better than Rigetti Computing › You don't need call options or other exotic investment strategies to make life-changing returns in financial markets. Sometimes, buying a regular stock like Rigetti Computing (NASDAQ: RGTI) can do the trick. With shares up by over 3,170% over the last 12 months, a $10,000 inv ...