Wall Street’s interest in quantum computing is growing by the day, with market participants expecting it to have a similar impact to generative artificial intelligence (AI) in the new year. As a result, $2 billion quantum computing stock Rigetti Computing, Inc. RGTI has significantly outperformed $3.2 trillion NVIDIA Corporation NVDA this year (+495.3% vs. +164.7%), with the latter lagging behind in terms of growth. is taking.
Image source: Zacks Investment Research
NVIDIA’s stock price has soared this year due to increased sales of data center graphics processing units (GPUs) in the booming AI market. But why has Righetti Computing stock been soaring lately? And is it a recommended stock to buy for next year? Let’s take a look –
What led to the rise in RGTI stock?
Unlike traditional computers, quantum computers use quantum mechanics to solve problems at a faster pace. Quantum computing stocks such as Righetti Computing have recently risen due to potential breakthroughs in the quantum computing field by Alphabet Inc.’s GOOGL AI division. Alphabet has claimed that its advanced quantum computing chip, Willow, can reduce errors and pave the way for large-scale quantum computers.
Amazon.com, Inc.’s AMZN’s recently announced Quantum Embark program is designed to help organizations deploy quantum computing based on their needs, driving gains in quantum computing stocks such as Righetti Computing. did. Additionally, efforts by US lawmakers to seek $2.7 billion in funding for quantum computing bode well for RGTI stock.
Growing Quantum Computing Market – Good for RGTI Stock
According to Markets and Markets, the global quantum computing market size was valued at $1.3 billion this year and is expected to reach $5.3 billion by 2029, at a CAGR of 32.7%. McKinsey estimates that the value of the global quantum computing market will grow to $1.3 trillion by 2035 as demand for quantum machine learning and optimization increases.
Righetti Computing is well-positioned to take full advantage of growth in the quantum computing space, which should boost its stock price. This is because Rigetti Computing allows developers to use quantum computing resources and establishes leadership in quantum computing system development. Rigetti Computing has already built an easy-to-access Quantum Cloud Services platform that runs on traditional computer hardware and offers significant cost savings to clients.
Rigetti Computing – Business expansion, optimistic outlook
Rigetti Computing launches new Novela quantum processor with 9 qubits, increasing orders in Singapore. Rigetti Computing has deployed an 84-qubit Ankaa-3 system, deployed both modular and non-modular system architectures, and plans to introduce a powerful 336-qubit system soon.
Rigetti Computing plans to introduce new chip manufacturing to reduce issues associated with quantum computing, such as vulnerability to external factors such as noise. Therefore, management expects revenue to decline this year but increase in 2025 and next year, a clear sign that the company’s stock price is poised to rise in the near future. .
How to trade RGTI stock in 2025?
Righetti Computing’s stock price is expected to rise significantly in the new year, so shareholders should hold on to their positions. However, new investors should take a wait-and-see approach.
After all, quantum computing is a highly speculative business in its early stages. Additionally, as a capital-intensive business, Righetti Computing faces the risk of running out of cash while it scales and addresses operational risks. As of now, RGTI stock carries a Zacks Rank #3 (Hold), but it’s too early to predict whether it will be the next NVIDIA. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks names top 10 stocks for 2025
Want to be the first to know about the top 10 overall for 2025?
History suggests that their performance can be sensational.
From 2012 (when Research Director Sheraz Mian took over the role of head of the portfolio) to November 2024, the Zacks Top 10 stocks have gained +2,112.6%, more than four times the S&P 500’s +475.6%. Ta. Currently, Shera’s has researched 4,400 companies and handpicked the 10 best stocks to buy and own in 2025. These stocks will be announced on January 2nd, so don’t miss your chance.
Be the first to access the new Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can now download the Double 5 Stock Set. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free stock analysis report
Alphabet Inc. (GOOGL): Free stock price analysis report
Rigetti Computing, Inc. (RGTI): Free Stock Analysis Report
Click here to read this article on Zacks.com.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
