We recently published a list of 12 Best Quantum Computing Stocks to Invest in Now. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other best quantum computing stocks to invest in now.
When AI first gained widespread attention a few years ago, much of the conversation focused on its potential to boost productivity, streamline data analysis, and improve efficiency within businesses. While AI has certainly made an impact in those areas, its capabilities extend far beyond.
Lesser-known but equally important applications of AI include optimizing drug development processes, detecting financial fraud, and strengthening cybersecurity systems. However, achieving significant breakthroughs in these complex fields will require more advanced AI systems. That’s where quantum computing enters the picture. Although quantum technology hasn’t yet been fully integrated with AI, its potential to unlock new levels of performance and problem-solving is immense, offering a powerful future synergy between the two fields.
Quantum computing is a new type of computing that uses the strange rules of quantum physics to solve really hard problems. Unlike regular computers that use bits (which are either 0 or 1), quantum computers use qubits (quantum bits), which can be both 0 and 1 at the same time. This lets them handle a lot more information at once. Qubits can also be linked together in a special way called entanglement, which makes them even more powerful. Although today’s quantum computers are still early and not perfect, they’re improving fast and could one day change fields like medicine, finance, and cybersecurity.
In a recent CNBC interview, Executive Chair & Chairman of the Board of IonQ, provided insights into the company’s strategy and vision for the future of quantum computing and its integration with artificial intelligence. Chapman explains that the company uses a unique approach to building quantum computers based on trapped-ion technology, which offers greater stability and scalability than other quantum systems. This method allows for more precise control over qubits, which is essential for solving complex computational problems currently beyond classical computers’ reach.
Quantum Computing Can Enhance AI Capabilities
Chapman discusses how quantum computing can significantly enhance AI capabilities. Traditional AI algorithms, especially those involving large datasets and intricate optimization challenges, are limited by the processing power of classical systems. Quantum computers, however, have the potential to process exponentially larger datasets and perform calculations that would otherwise take years. This could lead to breakthroughs in areas like drug discovery, supply chain optimization, and financial modeling. The former CEO also highlighted the company’s focus on practical applications rather than just theoretical advancement. The company is actively developing quantum algorithms specifically designed to complement AI models, and it is working with major tech firms and research institutions to accelerate real-world adoption. Chapman envisions a future where quantum computing becomes a critical tool for AI development, enabling smarter, faster, and more efficient solutions across industries.
Our Methodology
To compile the list of 12 Best Quantum Computing Stocks to Invest in Now, we conducted thorough research, analyzing multiple financial media reports and industry reports. Starting with an initial list of 20 companies, we narrowed it down by choosing pure-play quantum computing stocks that are popular among elite hedge funds. The final selection is ranked in ascending order of their hedge fund sentiment, as of Q4 2024.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up of an engineer typing at a quantum computing station in a modern office space.
Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) builds and operates quantum computers designed to solve complex problems with superior speed and energy efficiency. The company’s scalable, patented multi-chip architecture underpins next-gen systems targeting breakthroughs in climate, healthcare, and AI. As a vertically integrated company with its own fabrication facility, the company controls chip production and deploys full-stack solutions via cloud services and hardware sales. With the 2024 launch of our high-fidelity 84-qubit Ankaa-3 system, Rigetti Computing, Inc. (NASDAQ:RGTI) continues advancing performance and accessibility for partners and researchers in quantum computing.
Rigetti Computing, Inc. (NASDAQ:RGTI) has over a $100 million strategic partnership with Quanta Computer, a leading Taiwanese electronics manufacturer, which will also invest $35 million in Rigetti’s stock. Rigetti launched its 84-qubit Ankaa-3 system, achieving significant improvements in gate fidelity. Rigetti also plans to scale beyond 100 qubits by year-end using modular chiplet architecture. With $217 million in cash and investments, plus the Quanta deal, Rigetti anticipates sufficient funding for at least three years, focusing on R&D and aiming for commercial readiness within four to five years. Rigetti is working to demonstrate a 4×9 qubit fidelity of 99.5% by mid-2025, a key milestone in its roadmap focused on chiplet-based tiling architecture. Collaborations with QphoX and Qblox aim to replace bulky coax cables with flex and eventually fiber optics, crucial for scaling beyond 100,000 qubits. Rigetti is also pursuing a $300 million+ DARPA project to build a utility-scale quantum computer by 2033. Its open, modular architecture is seen as a competitive advantage, allowing integration of third-party innovations and making it a top contender alongside IBM and Google.
Overall, RGTI ranks 8th on our list of best quantum computing stocks to invest in now. While we acknowledge the growth potential of RGTI, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RGTI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
