Key Points
Rigetti Computing (NASDAQ: RGTI) and IonQ (NYSE: IONQ) are both attracting significant investor interest as promising plays in the nascent quantum computing market. Over the past 12 months, Rigetti’s stock has rallied nearly 70%, while IonQ’s stock has risen more than 70%.
However, both of these companies are unprofitable and richly valued relative to their near-term growth potential. Should you chase either of these high-flying quantum stocks right now?
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Two different approaches to quantum computing
Quantum computers can process certain computing tasks faster than classical computers, but they’re much larger, pricier, consume more power, and produce a higher percentage of errors. To overcome those limitations, companies like Rigetti and IonQ are developing new quantum chips and more scalable systems.
Rigetti, like many older quantum computing companies, accelerates electrons in superconducting loops to achieve a quantum state. IonQ traps ions and manipulates them with tiny lasers to make its quantum calculations.
Rigetti’s electron systems require cryogenic cooling, whereas IonQ’s trapped-ion systems can operate at room temperature. IonQ’s systems are more expensive and difficult to manufacture, but they’re smaller and easier to maintain than Rigetti’s systems. They process data more slowly but are more accurate and can remain in a stable quantum state for longer periods.
Rigetti produces modular and non-modular quantum processing units (QPUs), installs them in its own quantum systems, and allows developers to create their own quantum algorithms on its cloud-based Quantum Computing Services (QCS) platform. However, it still generates most of its revenue from its government and research contracts, as well as from access to its QCS platform, rather than from direct sales of QPUs or custom quantum systems.
IonQ has built four quantum systems to date, and it sells and leases them to a handful of research institutions. However, it generates most of its revenue from its cloud-based quantum computing platform, which provides remote access to its quantum systems.
Which company has a brighter future?
From 2025 to 2028, analysts expect Rigetti’s revenue to surge from $7 million to $100 million. That explosive growth could be driven by its rising sales of its Novera 9-qubit QPUs, which are stand-alone, non-modular quantum systems; the expansion of its modular Cepheus systems, which link together multiple modular 9-qubit chips; and the growing adoption of QCS.
It recently launched a 108-qubit Cepheus system to support that expansion, and it aims to launch a 1,000+ qubit system next year. That outlook is impressive, but its stock already trades at 28 times its 2028 sales — and it will remain unprofitable for the foreseeable future.
From 2025 to 2028, analysts expect IonQ’s revenue to rise nearly fivefold from $130 million to $638 million. Its influx of government contracts should fuel much of that growth. It even launched a new division, IonQ Federal, to handle all those contracts last year. But IonQ isn’t a bargain at 32 times its 2028 sales, and its bottom line will stay in the red.
IonQ’s focus on accuracy, stability, and system size could give it an edge against electron-powered companies like Rigetti, which prioritizes simplicity and scalability. Yet there could still be plenty of room for both companies to expand without trampling on each other. According to Fortune Business Insights, the quantum computing market could expand at a 31.6% CAGR from 2026 to 2034 as more industries adopt those systems and services.
Rigetti and IonQ are both speculative stocks. However, IonQ’s higher revenues, more innovative technology, and robust growth in government contracts all make it a better buy than Rigetti right now. Rigetti still needs to prove it can scale its business and keep up with newer competitors like IonQ before I consider it a worthwhile long-term investment.
Should you buy stock in Rigetti Computing right now?
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
