Quantum computing may be advancing fast, but for investors, it’s still a high-stakes bet with sharp swings and shaky footing. Market sentiment can turn quickly, especially for smaller players chasing big breakthroughs. This past week, two pure-play names felt the pressure. First up is Rigetti Computing (RGTI), which saw its shares drop 9.4% after Zacks Research slapped the stock with a “Sell” rating, citing disappointing first-quarter results and a clouded near-term outlook.
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The company reported $1.47 million in revenue, falling short of the $2.46 million estimate by 40.2%. EPS came in at -$0.08, also missing expectations. Revenue dropped 51.8% year-over-year, while EPS showed a slight improvement from -$0.14 a year ago. Zacks noted that RGTI has only beaten EPS estimates once in the last four quarters.
Still, some analysts maintain a more optimistic stance, as the broader analysts’ sentiment points to a Strong Buy consensus. Despite near-term concerns, RGTI is advancing its 108-qubit system, expected by the end of 2025.
The Big Players Are Threatening D-Wave
Meanwhile, D-Wave Quantum (QBTS) also fell 10.4% over the week, amid concerns that Google (GOOG) and IBM (IBM) may threaten its edge in quantum computing. Google’s Willow chip and IBM’s Starling architecture are both designed to reduce errors and scale quantum operations far beyond current capabilities. However, QBTS is still up 82.5% year-to-date, trading at $15.35. In contrast, Rigetti is down 18.2% year-to-date, though its price recovered slightly today to $12.49.
Both stocks remain highly volatile, reflecting the early-stage nature of quantum tech and the growing competition among public and private players. While D-Wave is positioning itself through optimization and AI applications, Rigetti’s roadmap includes scaling its systems to meet enterprise demand. Indeed, the debate between near-term execution and long-term potential is now front and center.
Using TipRanks’ Comparison Tool, we’ve compared RGTI and QBTS to gain a broader look at both stocks.
