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Quantum computing stocks are having a moment.
Following Alphabet's revelation of its Willow quantum chip in December, quantum computing stocks including Rigetti Computing (NASDAQ: RGTI) soared, and attention has remained on the sector as Microsoft and Nvidia have made their own announcements about quantum computing.
Rigetti Computing is still a development-stage company, as it brought in just $10.8 million in revenue in 2024 and an operating loss of $68.5 million. Its revenue also declined by 10% during the year, a sign that investors' hopes for explosive growth are not showing up in the results so far.
Rigetti touted a new strategic collaboration with Quanta Computer, and it also made its first QPU (quantum processing unit) sale to an academic institution, selling one of its Novera QPU products to Montana State University.
At a market cap of $2.8 billion, Rigetti Computing is pricey for a stock with barely any revenue and negative revenue growth in recent quarters, setting it up for a potential pullback if the excitement around quantum computing fades.
With that risk in mind, here are two smaller stocks that look well-positioned to be worth more than Rigetti Computing a year from now.
1. Amplitude
Amplitude (NASDAQ: AMPL) is a cloud software stock that specializes in digital product analytics and optimization, meaning it gives companies the tools to see how customers are using their digital products so they can improve them and increase return on investment.
Amplitude's analytics software helped Peloton realize that social interaction was key to member retention. The technology also helped guide Burger King's "Whopper Detour" campaign, which offered customers a Whopper for $0.01 if they downloaded the app near a McDonald's.
The company went public near the tail end of the pandemic boom, and the stock plunged in 2022 like a lot of software stocks. However, management has said that post-pandemic-related churn is now behind it, and it expects its growth rate to improve over the coming years.
Amplitude is also focused on launching an artificial intelligence (AI) agent, which has the potential to be a game-changer for the company. It would accelerate customer insights and make it easier to find relevant information using a chat interface like ChatGPT.
At a market cap of $1.55 billion, Amplitude stock could top Rigetti in another year if Rigetti pulls back, or if Amplitude's AI agent gains significant traction.
2. Dream Finders Homes
Homebuilders have had a rough go of it in recent years as the housing market cooled after the pandemic ended, and it has remained soft as mortgage rates are still elevated.