We recently published a list of 11 Best Quantum Computing Stocks to Buy Right Now. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other best quantum computing stocks to buy right now.
Quantum computing continues to advance rapidly, which has been helping businesses get new opportunities related to security, AI, optimization, and scientific discovery. As per PwC, the increasing recognition of quantum computing’s potential to revolutionize numerous industries has placed the momentum for significant breakthroughs. For example, quantum simulations in healthcare enable scientists to model complex molecular interactions, which helps in ramping up the discovery of new drugs and materials.
Therefore, quantum has the potential to advance complex problem-solving, speed up the scientific discovery, and lead to the development of entirely new technologies. PwC believes that quantum possesses numerous implications for operational, R&D, and security and controls.
What Lies Ahead for Quantum Computing Industry?
As per Stellar Market Research, quantum computing use cases are expected to have a hybrid operating model, representing a blend of quantum and traditional high-performance computing until around 2032. For instance, a quantum-inspired algorithm can result in improvements in traditional high-performance computers. Fortune Business Insights believes that the quantum computing market growth is expected to be fueled by advanced problem-solving, AI advancements, and global investments.
Commonwealth Scientific and Industrial Research Organisation (CSIRO) mentioned that the United Nations has designated 2025 to be the International Year of Quantum Science and Technology. Over the upcoming years, quantum chips are expected to scale up. Furthermore, the next generation of quantum processors are expected to be supported by logical qubits. Through the use of quantum simulations on normal computers, the researchers continue to develop and test numerous quantum algorithms. When the quantum hardware catches up, this can make quantum computing ready for useful applications, says the firm.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Our Methodology
To list the 11 Best Quantum Computing Stocks to Buy Right Now, we sifted through several online rankings to shortlist the companies catering to the broader quantum computing sector. Next, we chose the ones that are popular among the hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A scientist in a lab coat closely studying a petri dish for drug delivery technology.
Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) is engaged in building quantum computers and the superconducting quantum processors. Analysts are optimistic about the company’s growth potential, demonstrating confidence in the company’s tech prowess. Alliance Global Partners analyst Brian Kinstlinger upped the price objective to $16 from $15, reiterating a “Buy” rating. The analyst has highlighted Rigetti Computing, Inc. (NASDAQ:RGTI)’s partnership with Quanta Computer. The companies have committed to invest over $100 million each over the upcoming 5 years, with both sides emphasizing their complementary strengths in a bid to develop superconducting quantum computing technologies.
Kinstlinger believes that the strategic investment by a giant tech partner like Quanta demonstrates another validation of Rigetti Computing, Inc. (NASDAQ:RGTI)’s dominant position in the quantum computing domain. Also, TD Cowen analyst, Krish Sankar, reaffirmed a “Buy” rating on the company’s stock. This analyst also opines that Quanta partnership is a positive development because of the manufacturing and financial resources related to the deal. Rigetti Computing, Inc. (NASDAQ:RGTI)’s cash, cash equivalents and available-for-sale securities totaled $217.2 million as of December 31, 2024, ensuring sufficient financing through 2027.
Overall, RGTI ranks 8th on our list of best quantum computing stocks to buy right now. 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 time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
