Rigetti Computing is using the same technology approach as the legacy tech players.
The quantum computing specialist has enough cash to survive for a few years.
But the ultimate direction this new field takes in the years ahead remains highly uncertain.
10 stocks we like better than Rigetti Computing ›
Quantum computing stocks can go in and out of style in the market. The primary reason why they don’t have any staying power right now is that quantum computing technology isn’t expected to have a significant effect on industry until about 2030. Quantum computing stocks are equivalent to biotech stocks that are going through clinical trials. They could generate a ton of money someday, but as of now, they’re unprofitable and burning cash.
If the market has gotten too bearish on a quantum computing stock, it may be for three reasons. First, the broader industry could be viewed poorly by the market. Second, the company could be struggling in the race to achieve viable quantum computing technology. Or third, an individual stock has sold off too much due to investors losing patience. If a stock is in the third camp, it may be worth buying as the stock could be too cheap to ignore.
One of the more popular quantum computing pure-play stocks is Rigetti Computing (NASDAQ: RGTI). Rigetti is an $8 billion company by market cap, although it’s over 50% off its all-time high. Is this a buying opportunity for the stock? Or is there a good reason why Rigetti is down so much?
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Quantum computing is an interesting technology because there are a few different approaches companies can take. Rigetti chose the most common approach, known as superconducting. Currently, superconducting isn’t the most accurate quantum computing technique, but it does have the best processing speeds. This is more of a long-term play in the quantum computing realm. While an alternative approach, like trapped ion (the technology IonQ is using), provides superior accuracy, it lags in the speed department. If superconducting computers catch up in…
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