These 2 Growth Stocks Are Soaring, but Wall Street Expects Downside

Group 1: Rigetti Computing - Rigetti Computing's stock surged 5,950% over the past year, allowing investors to significantly profit from their investments [3] - The company has secured a three-year contract worth $5.8 million with the Air Force Research Laboratory to advance superconducting quantum networking, which has positively impacted its stock price [4][5] - Despite the contract, Rigetti's market cap has exceeded $15 billion, leading to a valuation of approximately 1,450 times its trailing-12-month sales of $7.9 million, raising concerns about sustainability [5][6] - Analysts predict a pullback in Rigetti's stock, with a consensus price target of $28.29 per share, indicating a potential decline of around 41% from recent prices [7] Group 2: Applied Digital - Applied Digital's shares increased by 273% over the past year, driven by a significant deal with AI hyperscaler CoreWeave for 250 megawatts of data center capacity, expected to generate $7 billion in revenue over 15 years [8] - The current consensus price target for Applied Digital is $16.20 per share, approximately 57% below its recent price, indicating analysts do not foresee further gains [9] - Applied Digital's market cap is around $9.6 billion, which is less than 10 times the projected annual operating income of $1 billion within five years, suggesting a more reasonable valuation compared to quantum computing stocks [11]