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Better Artificial Intelligence Stock: Rigetti Computing vs. Amazon
AMZNAmazon(AMZN) The Motley Fool·2025-02-19 10:30

Core Viewpoint - Investors are actively seeking the next significant growth opportunity in the artificial intelligence (AI) sector, which is projected to grow from a 200billionmarkettoover200 billion market to over 1 trillion by the end of the decade [2] Group 1: Amazon's AI Strategy - Amazon leverages AI in its e-commerce and cloud computing sectors, utilizing AI to optimize delivery routes and reduce operational costs [3] - Amazon Web Services (AWS) is heavily invested in AI, offering a range of AI chips and services, including Amazon Bedrock for adapting large language models [4][6] - AWS's development of AI-powered applications positions it well in the agentic AI market, addressing real-world problems and representing a significant growth phase for AI [5] Group 2: Rigetti Computing's Potential - Rigetti operates in the quantum computing space, producing its own multi-chip quantum processors and providing cloud access to its technology since 2017, leading to revenue growth [7] - Quantum computing utilizes qubits for data processing, allowing for significantly faster operations compared to classical computing, which can enhance AI capabilities [8] - Rigetti's recent advancements, such as halving error rates in its flagship quantum computer, indicate potential for future success in both quantum computing and AI [9] Group 3: Investment Considerations - The choice between investing in Amazon or Rigetti depends on the investor's strategy and risk tolerance, with Rigetti appealing to aggressive investors seeking high growth potential [10][11] - Amazon, with a proven track record and a billion-dollar AI business through AWS, is viewed as a more secure investment option as the AI market evolves, recently achieving a $115 billion annual revenue run rate [12]