Quantum Computing Stocks Thrive Amidst AI Evolution

Quantum computing is gaining momentum in the AI sector. Rigetti Computing and D-Wave Quantum are at the forefront, boasting significant stock returns. Investors eye potential growth despite volatility and high valuations.

Date: 24-05-2025

AI Rating: 6

Quantum computing is increasingly recognized for its potential to revolutionize various technology sectors, particularly artificial intelligence (AI). Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum (NYSE: QBTS) are emerging players that have recently seen substantial share price increases. The optimism surrounding these stocks is fueled by expectations of the quantum computing market's growth, projected to reach between $90 billion and $170 billion by 2040.

Rigetti Computing's Ankaa-3 system, with 84 qubits, represents a significant breakthrough, projecting potential revenue growth from $8.8 million in 2025 to $23 million in 2026. Despite facing financial losses, this emphasis on performance and future demand positions it as a compelling long-term investment, attracting investors looking for innovation in the tech space.

Conversely, D-Wave Quantum is experiencing rapid growth, with revenues reaching $15 million, an increase of 509% year-over-year, benefiting from its first successful delivery of a quantum system. However, its unprecedented P/S ratio of 173 indicates a highly speculative investment, raising concerns about its sustainability and profitability in a competitive landscape.

Potential Earnings Measurements:

1. Earnings Per Share (EPS): No specific EPS data is provided for either company in the report.

2. Revenue Growth: Significant reported revenue growth for D-Wave Quantum amidst a 509% year-over-year increase supports a positive outlook, while Rigetti's growth is anticipated but not yet realized.

3. Net Income: Current losses for both companies make this metric less impactful but are relevant for evaluating long-term investment potential.

4. Profit Margins: Not addressed directly, highlighting potential concerns over profitability.

5. Free Cash Flow (FCF): Not specified, giving limited insight into cash management.

6. Return on Equity (ROE): Not mentioned, leaving investors to speculate about long-term profitability.

Conclusion: Both companies are at the forefront of quantum computing development and present striking growth opportunities, albeit with inherent risks given their high valuations and uncertain profitability timelines. For investors exploring these options, patience may be key as market conditions fluctuate.

Stocks: RGTI QBTS