Rigetti computing Inc. (NASDAQ: RGTI), and IonQ Inc. (NYSE: IONQ), both have soared by about 50% in the last month, as investors rushed into quantum-computing stocks hoping they will be the next big goldmines in 2025 after AI.
Some experts believe that quantum technology could have a greater impact on the future of industries than artificial intelligence.
Which one of Rigetti Computing Inc. or IonQ is the better choice for exposure to future meteoric quantum growth? Let’s explore!
RGTI is inferior to IONQ in terms of technology
IonQ’s shares could be the better option for investors looking to gain exposure this year as they use a more sophisticated approach than Rigetti Computing.
IonQ uses ion technology, which eliminates the requirement for a large cooling infrastructure. The machines can operate at full capacity even when kept at room temperature.
It is important because it allows businesses to easily adopt IonQ technology.
IonQ’s trapped ion quantum bits offer a significantly higher fidelity, as well as longer coherence time compared with Rigetti’s superconducting quants.
RGTI’s hybrid model is less appealing than the cloud-based quantum computing offered by NYSE listed firm.
IONQ’s shares have fallen by about 40% from their highs for the year.
IonQ Stock offers Better Fundamentals Than Rigetti
IonQ is likely to be a better choice than Rigetti for quantum exposure, as well as because of its superior financial performance.
In the latest quarter reported, RGTI’s revenue dropped 33% year over year to $2.3million.
In Q4, the company’s margin fell by more than 3,500 basis points, to just 44%.
In contrast, IONQ’s revenue nearly doubled to $11.71 millions in the fourth quarter of its financial year.
Rigetti is not the only company that suffered a decline in profit margins in Q4. The College Park-based firm also saw a drop in profits in Q4 but it was less dramatic in terms of percentage.
At the time this article was written, neither Rigetti Computing or IonQ stocks paid dividends.
Bottom line
IONQ’s superior technology, accelerated growth rate and exposure to quantum technology in 2025 make it more attractive.
The poor performance of Rigetti compared with the rapid growth in IonQ revenue over recent quarters indicates that customers are much more satisfied with IonQ’s trapped-ion quantum bits than Rigetti’s superconducting quantum bits.
It’s important to note that, at this time, neither the IonQ or Rigetti Computing stocks are particularly appealing in terms of their valuation.
The price-to sales ratio of both quantum stocks is currently well over 100. This does not make them very attractive given the uncertainty that will be present in 2025.
The post Rigetti stock vs IonQ: Which is the best quantum play in 2025? This post may change as new information is revealed.
