Quantum(QMCO) ZACKS·2025-01-20 21:06Quantum Computing Market Overview - The quantum computing market is projected to grow from 5.3 billion by 2029, at a CAGR of 32.7% [1] - Quantum computing is gaining traction in finance, life sciences, and chemical sectors due to its potential to create trillions of dollars in value [1] - Quantum computers operate faster than traditional computers, with qubits capable of representing values between zero and one, unlike traditional bits [2] Alphabet (GOOGL) in Quantum Computing - Alphabet has made significant progress in quantum computing since founding Google Quantum AI in 2012 [2] - The company's quantum chip, Willow, is known for its error-reducing capabilities and potential to advance large-scale quantum computing [2] - Willow has outperformed supercomputers in addressing errors, making it one of Alphabet's standout products alongside YouTube, Google Search, and Google Cloud [2] - Alphabet's strong cash flow from its cloud computing and digital ad businesses supports its R&D efforts in quantum computing [4] - The company maintains a positive net profit margin of 27.7% [5] - Alphabet's average short-term price target is 192.91 [7] Rigetti Computing (RGTI) in Quantum Computing - Rigetti has introduced the Quantum Cloud Services platform, offering cost savings compared to traditional computer hardware [3] - The company has seen increased orders for its Novera quantum processor with 9 qubits and is developing a 336-qubit system [3] - Rigetti's new chip fabrication is expected to reduce noise issues and drive revenue growth in the near future [3] - However, Rigetti faces challenges with cash shortages and operational risks due to its capital-intensive business model [4] - The company has a negative net profit margin of 509.6% [5] - Rigetti's average short-term price target is 11.24 [8] Comparative Analysis - Alphabet holds an advantage over Rigetti due to its stronger financial position and profitability [4][5] - Both companies currently have a Zacks Rank 3 (Hold) [9]