Key Points Rigetti Computing stock has risen more than 180% over the past year. While Rigetti's valuation has soared, its sales have actually declined. Investors could have better options in the quantum computing space. 10 stocks we like better than Rigetti Computing › Rigetti Computing (NASDAQ: RGTI) is one of the hottest names in the quantum computing category, and the pure-play quantum-tech specialist's stock has been on an incredible winning streak. Thanks to progression for its tech, a $5.8 m ...

Key Takeaways IONQ stock fell 12.2% over 30 days, lagging its industry's 7.1% drop and the S&P 500's 1.1% gain.IonQ posted record Q3 contracted bookings and expanded federal and enterprise engagements.IONQ holds $3.5B in cash with no debt, giving it a major edge for M&A, R&D and global expansion.IonQ’s (IONQ) stock stumbled over the past 30 days, sliding 12.2% even as the S&P 500 edged up 1.1%. However, many market watchers see this pullback as a healthy correction after the outsized rally earlier in 2025. ...

Core Viewpoint - IonQ, Inc. is recognized for its potential in quantum computing, but caution is advised due to its current valuation and the early stage of technology adoption [1][5]. Company Overview - IonQ is positioned to lead in quantum computing, which could unlock significant economic value and generate billions in revenue from hardware and software [2]. - The company has developed a comprehensive technology roadmap to enhance the commercial viability of its systems [3]. Market Potential - The total addressable market for quantum computing, sensing, and communications is estimated to be between $46 billion and $97 billion by 2035 [4]. - IonQ is expected to experience rapid revenue growth driven by strong leadership, key partnerships, and increasing product commercialization [4]. Strategic Partnerships - Collaborations with notable companies such as Hyundai, AFRL, AstraZeneca, EPB, and Ansys validate IonQ's technology and enhance its market position [4]. Financial Position - IonQ maintains a substantial cash position, providing a buffer as it executes its strategic roadmap [4]. Analyst Rating - JP Morgan analyst Peter Peng initiated coverage on IonQ with a Neutral rating and a price target of $47, indicating that the stock reflects a demanding valuation despite its emerging leadership in quantum technology [1][5].

Core Insights - Rigetti Computing has recently achieved sales of two quantum computing systems totaling $5.7 million, indicating its current market presence and technology validation [1] - The company utilizes superconducting qubits, a well-established technology, to compete with major players like IBM and Alphabet [2][3] - Rigetti's stock has surged nearly 200% since early September, driven by increased investor interest and significant announcements from JPMorgan regarding investments in quantum computing [5][6] Company Performance - Rigetti's stock experienced a 25% increase following JPMorgan's announcement of a $10 billion fund for critical industries, including quantum computing [6] - The company is positioned as a pure-play in quantum computing, focusing solely on this technology without diversifying into other areas [4] - The competitive landscape suggests that Rigetti must maintain superior technology to capture market share effectively [8] Market Potential - The total annual value for quantum computing is projected to reach between $15 billion and $30 billion by 2030 to 2040, with Rigetti potentially capturing a 25% market share by 2035 [7][8] - If successful, Rigetti could generate $7.5 billion in annual sales and $2.25 billion in profits, leading to a projected market cap of $67.5 billion in a decade, representing a 350% upside from its current $15 billion market cap [9] Investment Considerations - The rapid increase in Rigetti's stock price raises concerns about a potential hype-cycle bubble, prompting questions about the timing of investments [5][10] - The high-risk, high-reward nature of Rigetti's stock is emphasized, with the possibility of a market downturn affecting future valuations [10][11]

Core Insights - The quantum computing sector has seen significant share price gains, with some stocks rising as much as 2,640% over the past year, attracting the attention of billionaires and hedge funds [3][11] - D-Wave Quantum is a notable player in the quantum computing industry, focusing on both gate-based quantum computing and quantum annealing, which is believed to be advantageous for specific optimization problems [7][10] - The market capitalization of D-Wave Quantum is currently $11 billion, with a reported revenue of approximately $3.1 million in Q2 and a loss exceeding $167 million, indicating a speculative investment reliant on the future commercialization of quantum technology [10][15] Investment Activity - Billionaires have shown increased interest in D-Wave Quantum, with significant purchases made by funds such as Tudor Investment Corp, Citadel Advisors, and Millennium Management, the latter increasing its position by 948% [13][11] - JPMorgan Chase's recent announcement of billions in investments related to quantum technology may serve as a catalyst for further interest and funding in the sector [14] Technology Overview - Quantum computers utilize qubits, which allow for greater data processing capabilities compared to traditional bits, potentially leading to superior computing power [6] - D-Wave's approach to quantum annealing may facilitate scaling with more qubits, although it presents challenges in manipulation compared to gate-based systems [8][10]

Core Insights - D-Wave Quantum and Rigetti Computing are positioned as early movers in the quantum computing sector, attracting investor interest as the generative AI hype wanes [1][2] - Both companies have experienced significant stock price increases, indicating market optimism despite fundamental challenges [2][7] D-Wave Quantum - D-Wave Quantum's shares have surged over 3,700% in the past year, creating substantial wealth for early investors [3] - The company reported a 42% year-over-year revenue increase to $3.1 million in Q2, driven by sales of quantum annealing devices [5] - D-Wave's technology is being applied in real-world scenarios, such as enhancing vehicle manufacturing efficiency in Turkey and aiding drug discovery in Japan [5] - Despite positive revenue growth, the company faces a substantial operating loss of $26.5 million in Q2, indicating a long path to profitability [6] - The stock is considered expensive with a price-to-sales (P/S) ratio of 336, suggesting potential investors may wait for a price correction before entering [6] Rigetti Computing - Rigetti Computing's shares have increased by 5,700% over the last year, significantly outperforming the S&P 500's 18% return [7] - The company announced purchase orders for two quantum computing systems worth $5.7 million, with delivery expected in the first half of 2026 [8] - Rigetti's business model focuses on providing hardware for other companies to develop consumer-facing platforms, similar to Nvidia's role in the generative AI space [9] - However, Rigetti's Q2 revenue fell by 42% to $1.8 million, and the company reported an operating loss of $19.9 million, indicating challenges in achieving profitability [10] Industry Outlook - The quantum computing industry remains speculative, with both D-Wave and Rigetti poised for potential growth as the technology approaches commercial viability [11] - There is uncertainty regarding the timeline for quantum technology readiness, which could span years to decades [11] - Both companies are experiencing significant cash burn and are considered overvalued due to low sales figures, suggesting a volatile investment landscape [12]

Core Insights - Two stocks in the information technology sector, Quantum Computing Inc (NASDAQ:QUBT) and Rigetti Computing Inc (NASDAQ:RGTI), are showing signs of being overbought, which may concern momentum-focused investors [1][2]. Company Summaries - **Quantum Computing Inc (QUBT)**: - Ascendiant Capital maintained a Buy rating and raised the price target from $22 to $40 - The stock gained approximately 63% over the past month, reaching a 52-week high of $27.15 - RSI Value is at 70.1 - Price action saw shares jump 23.2% to close at $24.62 [6]. - **Rigetti Computing Inc (RGTI)**: - Received $5.7 million in purchase orders for two quantum computing systems - The stock surged around 165% over the past month, with a 52-week high of $40.63 - RSI Value is significantly higher at 86.8 - Price action showed shares gained 13.2% to close at $40.06 [6].

Quantum Computing Sector - Quantum computing stocks experienced significant gains, with Regetti Computing's orders totaling €5.7 million for two systems and a €300 million investment from the Danish government and Nova Nordisk in a quantum venture fund, leading to over 20% increases in shares of Regetti Computing, D-Wave Quantum, and Quantum Computing [2] - Regetti's stock has more than doubled since the beginning of the year, while D-Wave Quantum's stock has tripled, and Aritic Quantum surged approximately 36% this week [3] Federal Reserve Insights - Chicago Fed President Austin Goulsby expressed caution regarding premature rate cuts, indicating concerns about inflation and describing the Fed's current position as "sticky" [4] - Fed Vice Chair Philip Jefferson highlighted uncertainty in the baseline outlook for rate cuts due to changing government policies and their effects on employment and inflation [4] Technology Sector Performance - The technology sector saw a mixed performance, with a notable chip rally contributing to all-time highs in markets across Asia, including South Korea, Japan, and Taiwan [6] - Despite some declines in tech stocks, the S&P 500 achieved its 31st record high for 2025, indicating overall positive momentum in the sector [7] Oil Market Dynamics - Oil prices fell to $60 per barrel, marking the worst week since June, influenced by expectations of increased production from OPEC+ and declining summer demand [8] Upcoming Market Events - The Fed minutes are anticipated to provide deeper insights into individual voter positions ahead of the FOMC meeting, which may face challenges due to limited data for rate-cutting decisions [10] - The OpenAI developer conference is expected to be a significant catalyst for the AI sector, following a global chip rally and recent partnerships announced by OpenAI [11][12]

Core Insights - IonQ has demonstrated significant stock growth, turning a $10,000 investment into over $120,000 in three years, indicating strong market performance [1] - The company is positioned as a leader in the quantum computing market, which is projected to reach a total addressable market of $87 billion by 2035 [4] Company Overview - IonQ is a pioneer in quantum computing with a robust customer base that includes major companies like AstraZeneca, General Dynamics, Hyundai, and T-Mobile [3] - The company has a high revenue compound annual growth rate of 175% since 2021, assuming it meets its 2025 guidance [4] Financial Position - IonQ is not yet profitable but has a solid financial position with nearly $1.7 billion in cash and equivalents and zero debt [5] Competitive Advantages - IonQ's technology offers 36 quadrillion times larger computational space compared to IBM's best quantum systems, showcasing its superior capabilities [6] - The acquisition of Oxford Ionics enhances IonQ's ability to increase qubit density on chips, which is crucial for developing more powerful quantum computers [8] - The company's roadmap aims for the development of quantum systems supporting 2 million physical qubits and 80,000 logical qubits by 2030, with extremely low error rates [9] Market Potential - IonQ's current market cap is around $20 billion, and achieving a $1 million return on a $10,000 investment would require the company to reach a valuation of $2 trillion [10] - The potential applications of quantum computing in fields such as artificial intelligence, communication, cryptography, and simulation are vast, suggesting significant future growth opportunities for IonQ [11]

Core Viewpoint - Quantum computing is emerging as a significant investment trend, with varying approaches represented by IonQ and Alphabet [1][2] Company Comparison - IonQ has a market cap of $17 billion, while Alphabet is significantly larger at $2.9 trillion [5] - IonQ's revenue in Q2 was $21 million, which is only 0.0218% of Alphabet's $96.4 billion revenue during the same period [6] - IonQ trades at 242 times sales, whereas Alphabet trades at about 8 times sales, indicating a higher market expectation for IonQ's future growth [7][9] Investment Strategy - Investors face a choice between high-risk, high-reward investments like IonQ and safer, more stable options like Alphabet [2][10] - A balanced investment approach is suggested, allocating no more than 1% of a portfolio to IonQ while investing in Alphabet to mitigate risk [12]