Better Quantum Computing Stock: Rigetti Computing vs. IonQ

Industry Overview - The artificial intelligence (AI) industry has rapidly risen, and quantum computing is poised to be the next hot sector, with the potential to transform industries even more than AI [1] - Quantum machines utilize subatomic particles for calculations at unprecedented speeds, enabling breakthroughs in various fields such as medicine, energy, and manufacturing [1] Company Analysis: Rigetti Computing - Rigetti Computing's shares have surged over 300% in the past 12 months due to investor optimism regarding quantum computing [3] - The company employs superconducting qubits and solid-state fabrication, aligning with existing semiconductor industry standards to facilitate customer adoption [4] - Despite the potential, Rigetti faces challenges with calculation errors in subatomic particles, limiting scalability and preventing replacement of current computers [5] - In Q3, Rigetti reported revenue of $2.4 million, a 23$3.1 million in 2023, marking the second consecutive quarter of year-over-year sales declines [6] - The cost of revenue increased by 41% year over year to $1.2 million, leading to a nearly 50$1.2 million, and a net loss of $14.8 million [7] Company Analysis: IonQ - IonQ is developing networking technology to scale quantum machines, similar to conventional computing methods used in AI, resulting in a stock surge of over 140$43.1 million, a 95% year-over-year increase, continuing a trend from 2023's $22 million, which was a 98$331.6 million in 2024, more than double the $157.8 million loss in 2023 [11] - Rising costs prompted IonQ to raise capital through an equity offering, which negatively impacted its stock due to shareholder dilution [12] Investment Comparison - Between Rigetti and IonQ, IonQ appears to be the superior investment due to its rapidly rising revenue compared to Rigetti's declining sales [13] - Both companies have high price-to-sales (P/S) ratios, indicating that investors are willing to pay a premium for their revenue [14] - The P/S multiples for both stocks have surged recently, suggesting a potential wait for lower prices before making investment decisions [15]