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Better Quantum Stock: IonQ vs. Rigetti Computing
QMCOQuantum(QMCO) The Motley Fool·2025-04-25 10:30

Industry Overview - Quantum computing is rapidly evolving and promises to solve complex problems at unprecedented speeds, far exceeding classical systems [1] - The market for quantum computing is projected to exceed 170billionannuallyby2040,indicatingsignificantgrowthpotential[2]IonQAnalysis−IonQhasamarketcapitalizationof170 billion annually by 2040, indicating significant growth potential [2] IonQ Analysis - IonQ has a market capitalization of 5.4 billion, making it the largest pure-play quantum computing stock, more than double that of Rigetti's 2.3billionvaluation[4]−Thecompanyutilizesuniquetrapped−iontechnology,leveragingelectricallychargedatomsasqubits,whichallowsforoperationatroomtemperature,avoidingtheneedforsubfreezingtemperatures[5][6]−IonQ′sForteEnterprisesystemfeatures36algorithmicqubits,representingitsmostpowerfulsingle−corequantumprocessor,designedforscalablesolutions[7]−IonQ′snetrevenuefor2024reached2.3 billion valuation [4] - The company utilizes unique trapped-ion technology, leveraging electrically charged atoms as qubits, which allows for operation at room temperature, avoiding the need for subfreezing temperatures [5][6] - IonQ's Forte Enterprise system features 36 algorithmic qubits, representing its most powerful single-core quantum processor, designed for scalable solutions [7] - IonQ's net revenue for 2024 reached 43.1 million, reflecting a 96% year-over-year increase [8] - Major customers span various industries, including pharmaceuticals and logistics, and IonQ has partnerships with cloud providers like Microsoft and Amazon [9] - The company is not yet profitable but expects revenue to nearly double to 97millionin2025,drivenbystronginterestinitsquantumcomputingsolutions[10]RigettiComputingAnalysis−RigettiComputingfocusesonaverticallyintegratedbusinessmodel,controllingchipdesign,manufacturing,andsoftwaredevelopment,whichmayprovidelong−termadvantages[11]−ThecompanyoperatesFab−1,thefirstdedicatedquantumfoundry,allowingforprecisecontroloverchipfabrication,potentiallyleadingtocost−effectivestrategies[12]−Rigetti′ssuperconductingqubitsachieveultra−fastgatespeedsof60to80nanoseconds,significantlyfasterthanion−basedsystems[13]−In2024,Rigettigenerated97 million in 2025, driven by strong interest in its quantum computing solutions [10] Rigetti Computing Analysis - Rigetti Computing focuses on a vertically integrated business model, controlling chip design, manufacturing, and software development, which may provide long-term advantages [11] - The company operates Fab-1, the first dedicated quantum foundry, allowing for precise control over chip fabrication, potentially leading to cost-effective strategies [12] - Rigetti's superconducting qubits achieve ultra-fast gate speeds of 60 to 80 nanoseconds, significantly faster than ion-based systems [13] - In 2024, Rigetti generated 10.8 million in revenue, but its latest 84-qubit Ankaa-3 system is expected to drive growth [14] - Rigetti's stock has seen a 700% price increase over the past year, outperforming IonQ's 250% return, and the company has a cash position of $217 million [14] Comparative Analysis - IonQ is currently viewed as the better investment option due to its compelling growth outlook and market position [16]