Better Hypergrowth Stock: Rigetti Computing vs. CoreWeave

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]