Is Rigetti Computing, Inc. (RGTI) Hot Again?

We recently published a list of 5 Quantum Computing Stocks That Are Hot Again. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other quantum computing stocks that are hot again.

When Jensen Huang’s comments about useful quantum computing being at least 15 years away tanked most of the quantum stocks, one person must have secretly chuckled. The man in charge of the largest software company in the world, Satya Nadella, may have been the right person to ask that question. His firm has just revealed a new quantum chip, one that uses a superconductor that is neither solid, liquid, or gas! It is a new state of matter altogether!

The new quantum chip is called the Majorana 1 and it can significantly speed up the quantum processes to solve problems in years rather than decades. Chetan Nayak, a technical fellow at the Windows maker had this to say about the development:

Whatever you’re doing in the quantum space needs to have a path to a million qubits. If it doesn’t, you’re going to hit a wall before you get to the scale at which you can solve the really important problems that motivate us. We have actually worked out a path to a million.

As a result of this revelation, quantum computing stocks are surging again. If you missed the last rally, you may still have ample time to get back in. Here is our list of 5 quantum computing stocks that are hot again. To come up with this list, we only considered stocks that have a market cap of at least $500 million.

A close up of an engineer typing at a quantum computing station in a modern office space.

Rigetti Computing, Inc. (NASDAQ:RGTI)

Rigetti Computing, Inc. (NASDAQ:RGTI) is one of the many firms that make quantum computers. However, the company goes a step further and also develops superconducting quantum processors. Its business works on quantum computing as a service model by selling access to its quantum computers. The company’s stock was up 1500% in 2024 even though it struggles with profitability and revenue generation.

In the industry that Rigetti Computing (NASDAQ:RGTI) operates in, commercialization and scalability are uncertain. For this reason, the market sometimes refuses to factor in this negativity and values the stock highly. This is also what makes these stocks volatile, but the opportunity for big gains also comes in such stocks. As far as RGTI is concerned, quantum computing could soon become as important as AI for the US government. The company’s first-mover advantage positions it well to benefit from any government support or investment in this field.

The company’s 2025 plans could help it sustain a bull run. In mid-2025, it is expected to release a cluster of four 9-qubit chips which should help it go past the 99.5% two-qubit fidelity level. In simpler words, this would be the equivalent of 995 out of 1000 operations being correct. By the end of the year, the company intends to launch a similar system of over 100 qubits at the same fidelity level.

Overall, RGTI ranks 2nd on our list of quantum computing stocks that are hot again. While we acknowledge the potential of RGTI as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.