Highlights
- D-Wave Quantum is pioneering the commercialization of quantum computing solutions.
- Rigetti is excelling in the design of chips and processors.
In the ever-evolving tech landscape, as enthusiasm for generative artificial intelligence starts to fade, investors are eagerly searching for the next big advancement — and quantum computing might just be it. Recently, shares in early-bird companies have surged as attention shifts to this long-term game changer.
Let’s delve into why D-Wave Quantum (NYSE: QBTS) and Rigetti Computing (NASDAQ: RGTI) might just take off by 2026 and beyond, even though they face significant financial hurdles.
1. D-Wave Quantum
D-Wave Quantum has seen an astonishing rise in stock value—over 3,700% within the last year—making many early supporters quite affluent. The California-based company is riding a wave of optimism, buoyed by increasing sales of its innovative quantum annealing devices.
Quantum annealing utilizes principles of quantum mechanics to tackle complex problems effectively. While it differs from typical quantum computing, it has unique applications, especially in logistics for optimizing routes and minimizing overall travel distances, famously known as the “traveling salesman problem.” It’s more intricate than one might think!
In the latest quarter, D-Wave’s revenue surged by 42% from the previous year, reaching $3.1 million, largely owing to its quantum annealing devices. They are currently employed in real-world applications—including enhancing car manufacturing in Turkey and aiding drug discovery efforts in Japan.
Despite this positive momentum, D-Wave has a long road ahead. In the second quarter, they reported operating losses of $26.5 million, showing profitability is still a distant goal. The stock’s valuation also appears steep with a price-to-sales ratio of 336, so potential investors might consider waiting for a better entry point.
2. Rigetti Computing
Rigetti Computing is catching the wave, too, with shares skyrocketing 5,700% over the past 12 months—significantly outperforming the S&P 500’s meager 18% return. Investor confidence is up due to Rigetti’s increasing momentum in quantum hardware sales and a robust business model.
Just recently, Rigetti revealed orders for two quantum computing systems totaling $5.7 million, with delivery on schedule for the first half of 2026. The company is also gaining traction with research institutions eager to experiment with its technology.
Instead of offering quantum tech directly to end-users, Rigetti’s strategy is to supply the essential hardware—such as chips and processors—to other firms looking to create consumer-relevant solutions. This is comparable to Nvidia’s current role in the AI landscape. This picks-and-shovels approach helps mitigate risks in a highly unpredictable sector.
Nevertheless, Rigetti’s journey is also fraught with speculation. In their recent report, quarterly revenue dropped by 42% to $1.8 million, and the company logged an operating loss of $19.9 million, highlighting that profitability is yet to be seen. Like D-Wave, potential investors may be wise to wait for a potential stock dip before committing to a position.
Learning from the Quantum Sector
D-Wave Quantum and Rigetti Computing seem to be on the brink of substantial growth as quantum computing edges closer to becoming commercially viable. However, exact timelines remain murky; we could be looking at years or even decades before mainstream adoption occurs. For now, both companies are grappling with severe cash burn rates and overvaluation challenges due to their low sales thresholds.
Though these stocks show promise in the quantum sector, investors should brace themselves for unpredictable stock performances. Caution is advised, treating investments in these companies as minor components of a diversified portfolio.
