In recent years, quantum computing has emerged as a revolutionary technology capable of processing massive amounts of information at unprecedented speeds. Unlike traditional binary computers, which store data in bits of zeros and ones, quantum computers use qubits that can exist in multiple states simultaneously. This fundamental difference allows quantum computers to perform complex calculations much faster than their binary counterparts.
However, current quantum computers are larger, more expensive, and more error-prone, which limits their mainstream applications and confines their use largely to niche research areas. Despite these limitations, the quantum computing market is poised for significant growth. According to Fortune Business Insights, the market could expand at a compound annual growth rate (CAGR) of 34.8% from 2024 to 2032.
If these projections hold, early movers in this industry could see substantial gains. Two notable players in this field are Rigetti Computing and D-Wave Quantum. Both companies have seen impressive stock surges, with Rigetti’s stock climbing nearly 470% and D-Wave’s rising 390% over the past 12 months.
But which of these companies represents the better investment opportunity right now? Rigetti Computing takes a vertically integrated approach by designing and manufacturing its own quantum processing units (QPUs), building complete quantum computing systems, and offering a developer-oriented cloud infrastructure platform. Rigetti serves high-profile clients such as the Superconducting Quantum Materials and Systems Center (SQMS), Air Force Research Lab (AFRL), and Horizon Quantum Computing in Singapore.
The company has made significant strides with its technology. In late 2024, it launched the Novera QPU, a 9-qubit commercial quantum computer priced at approximately $900,000. More recently, Rigetti deployed its first 84-qubit Ankaa-3 system, boasting a median gate fidelity of 99%.
This year, Rigetti plans to introduce a modular system linking four 9-qubit chips to form a 36-qubit system with a median gate fidelity of 99.5%.
Quantum computing market outlook
Additionally, it aims to deploy systems with more than 100 qubits by the end of 2026 and a 336-qubit system in the coming years.
D-Wave Quantum specializes in quantum annealing tools designed to optimize workflows, schedules, supply chains, and logistics networks. Its quantum computing solutions function like automated efficiency experts, mapping out vast amounts of data to find optimal solutions with minimal computing power. D-Wave offers both hardware and cloud-based services through its Leap quantum platform, which is compatible with larger cloud infrastructure like AWS.
The company recently calibrated its new 4,400-qubit Advantage2 processor, which solves complex 3D lattice problems 25,000 times faster than its previous Advantage processor. This advancement significantly enhances D-Wave’s ability to optimize client operations. The company has already attracted major clients such as Deloitte and Lockheed Martin, and its focus on practical applications makes it appealing to mainstream customers.
Both Rigetti and D-Wave trade at high valuations, reflecting the market’s future growth expectations. Rigetti has a market cap of $2.83 billion, while D-Wave’s is $3.09 billion. However, both companies are anticipated to remain unprofitable for at least the next three years and have been diluting their existing shareholders with stock-based compensation and secondary stock offerings.
Over the past year, Rigetti and D-Wave have increased their outstanding shares by 73% and 80%, respectively. Interestingly, insider transaction trends differ between the two companies. Rigetti’s insiders have sold nearly four times as many shares as they bought, whereas D-Wave’s insiders have purchased 8% more shares than they sold, indicating a more optimistic insider sentiment for D-Wave.
While both Rigetti and D-Wave have promising strategies and technologies, their high valuations and unproven profitability make them risky investments at this stage. However, if forced to choose between the two, D-Wave Quantum appears to be the more attractive option. Its accelerating growth, slightly lower valuation, positive insider transactions, and focus on practical applications suggest it may have more upside potential than Rigetti.
Ultimately, investors should approach these high-flying quantum computing stocks with caution and thoroughly consider the risks before making decisions.
Image Credits: Photo by Christian Wiediger on Unsplash
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
