We recently compiled a list of the 10 Best Quantum Computing Stocks to Buy for 2025.In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against the other quantum computing stocks.
Quantum computing is a revolutionary technology that integrates quantum physics properties into a computer. This technology has the potential to revolutionize industries by solving complex issues at a rapid pace as compared to traditional computing methods. Notably, businesses across sectors, such as finance, healthcare, and transportation, continue to explore several benefits of quantum computing in a bid to have a competitive edge and fuel innovation.
Trends To Watch Out For in 2025
Heading into 2025, government aid, strategic initiatives, and legislative support for research are some of the key trends likely to fuel growth. In July 2024, US Senators John Hickenlooper and Michael Bennet highlighted the Department of Commerce’s announcement that Colorado’s Elevate Quantum was given $40.5 million in federal funding to build the nation’s leading quantum ecosystem.
Hickenlooper added that Colorado is regarded as the Silicon Valley of the quantum era, and Elevate Quantum is expected to lead. Hickenlooper went on to say that Quantum is well-placed to revolutionize medical drug discovery, supercharge AI, strengthen US cybersecurity, and support the transition to clean energy.
Also, in late November 2024, The Senate advanced the Department of Energy (DOE) Quantum Leadership Act of 2024, proposing $2.5 billion over 5 years to fuel US quantum R&D. Notably, the bipartisan bill emphasizes quantum networking, domestic manufacturing, and public-private partnerships to ramp up quantum innovation.
The Wall Street Journal reported that quantum computers possess the potential to reduce global carbon emissions by 7 gigatons by 2035 and 150 gigatons by the upcoming 30 years, while adding up to $1.3 trillion in value to key transition industries, as per McKinsey. The rapid computational power it promises is expected to revolutionize batteries for electrification, transform carbon-heavy industrial operations, establish cleaner methods for agriculture, and help reimagine fuel’s future.
Grand View Research highlighted that the growth in the quantum computing market in the US should be driven by higher government and private sector investment in quantum technologies. This growth is likely to stem from the potential of quantum computing to revolutionize industries including materials science, drug discovery, and finance.
Our Methodology
To list the 10 Best Quantum Computing Stocks to Buy for 2025, we conducted extensive research and sifted through several online rankings. After getting the initial list of 12-15 stocks, we chose the ones that were popular among hedge funds and that analysts saw upside to. Finally, the stocks are arranged in ascending order of their hedge fund sentiment, as of Q3 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Rigetti Computing Inc. (RGTI) Among the Firms Buck Broader Market Optimism?
A close up of an engineer typing at a quantum computing station in a modern office space.
Rigetti Computing, Inc. (NASDAQ:RGTI) builds quantum computers and superconducting quantum processors. The company’s stock has been on investors’ radar and much of the appreciation in the stock price stemmed from an investment bank’s optimism about its growth outlook. The stock price went up by ~313% in just a month, with Craig-Hallum believing that quantum computing technology is expected to be revolutionary.
The investment bank added that investors are required to focus on this technology. As per the firm, Rigetti Computing, Inc. (NASDAQ:RGTI)’s unmatched ability to grow its quantum business can help surpass its peers over the longer term. The company’s release of an 84-qubit Ankaa-3 quantum computer fueled much of the optimism. Ankaa-3 features superior two-qubit gate fidelities, delivering 99.0% for iSWAP gates and 99.5% for fSim gates, along with lower error rates.
Rigetti Computing, Inc. (NASDAQ:RGTI) believes that such improvements are important when it comes to including quantum computing in practical applications in cryptography and drug discovery. Rigetti Computing, Inc. (NASDAQ:RGTI) plans to roll out the next generation of its modular system architecture while continuing to increase fidelities in 2025. By mid-year 2025, the company projects to release a 36-qubit system based on four 9-qubit chips tiled together, with the targeted 2x reduction in error rates from the present level. Analysts at Craig-Hallum initiated coverage of the shares of Rigetti Computing, Inc. (NASDAQ:RGTI), and gave a “Buy” rating with the $12 price target.
Overall RGTI ranks 7th on our list of the best quantum computing stocks to buy for 2025. While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
