The quantum computing industry is shaping to be one of the most dynamic investment frontiers, fueled by surging interest from commercial and government sectors.
Market forecasts paint a bright future, with the industry expected to expand from $1.16 billion in 2024 to $12.6 billion by 2032, reflecting a remarkable 34.8% annual growth rate.
Google’s recent unveiling of its quantum computing chip, “Willow”, has intensified this momentum, marking a significant leap in the field and highlighting quantum computing’s potential to tackle challenges beyond the reach of classical systems.
Picks for you
Amid this surge, Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum (NYSE: QBTS) are emerging as standout players, leveraging technology and strategic partnerships to carve their place in this transformative space.
Rigetti Computing (NASDAQ: RGTI) stock
Rigetti Computing is a notable player in the quantum computing space, leveraging superconducting qubit technology, in-house manufacturing capabilities, including Fab-1, and an ambitious technological roadmap.
For instance, Rigetti plans to unveil a 36-qubit system in 2025, aiming to achieve 99.5% fidelity, followed by a scalable 100-plus qubit system.
Additionally, the company plays a significant role in advanced research partnerships, including its collaboration with the U.K.’s National Quantum Computing Centre, where its 24-qubit system supports advanced quantum development for testing, benchmarking, and exploratory applications.
Despite its promising technology, Rigetti’s Q3 2024 revenue was a modest $2.4 million, showcasing slower commercial traction.
However, Rigetti has gained speculative momentum, with its stock soaring 680% to date. This surge was fueled by retail excitement over the company’s use of AI to automate computing calibration and perceived parallels with Google’s Willow advancements.
Nevertheless, the rally has faced skepticism. Short-seller Citron Research criticized the stock’s valuation, leading to a slight dip in its recent rally. Despite this, Rigetti’s speculative potential remains compelling for investors looking to capitalize on the quantum computing revolution.
At the time of writing, Rigetti’s stock is trading at $7.20, with a five-day gain of 95% and a monthly gain of 391%.
For investors eager to position themselves in this industry, Rigetti remains a stock to watch closely, particularly as it works toward achieving scalable quantum processing milestones in 2025 and beyond.
D-Wave Quantum (NYSE: QBTS) stock
D-Wave Quantum is emerging as a compelling stock for investors, driven by its focus on quantum annealing technology. Its recent collaboration with Japan’s NTT DOCOMO to reduce network congestion and its work with Japan Tobacco Inc. to enhance drug discovery, a process for discovering ‘first-in-class’ pharmaceutical small compounds, showcase the company’s growing market relevance.
The company’s technological advancements, such as the development of its 4,400-qubit Advantage2 processor, represent significant progress in solving complex problems faster and more efficiently than earlier-generation processors.
This milestone, coupled with partnerships with major research institutions like the Chicago Quantum Exchange, strengthens its position as a pioneer in quantum computing.
At press time, D-Wave’s stock is trading at $4.50, with a five-day gain of 11% and a one-month gain of 183%, highlighting strong recent momentum.
Despite a 27% decline in Q3 2024 revenue to $1.9 million, D-Wave’s quantum computing-as-a-service revenue grew by 41%, reflecting the increasing adoption of its solutions.
While financial challenges remain, its expanding partnerships and unique focus on quantum annealing make it a strategic addition to portfolios seeking exposure to the next wave of technological leap.
For investors and traders eyeing the next big “tech leap,” Rigetti and D-Wave offer distinct yet complementary opportunities.
As quantum computing matures, these stocks merit close attention for those looking to capitalize on one of the hottest investing themes of 2024.
Featured image from Shutterstock.
