TLDR
- Rigetti Computing (RGTI) stock jumped 2,847% to 4,024% in one year on quantum breakthroughs
- D-Wave Quantum (QBTS) gained 2,278% using annealing quantum technology with 1,200+ qubits
- Rigetti achieved 99.5% accuracy on 36-qubit system and secured $5.8 million Air Force contract
- Both companies trade at $7-10 billion valuations despite minimal revenue and losses
- Quantum computers use qubits to solve complex problems faster than traditional supercomputers
Two quantum computing companies have posted extraordinary stock gains over the past year. Rigetti Computing and D-Wave Quantum have captured investor attention as quantum technology moves toward commercial applications.
Quantum computers operate differently from traditional computers. They use quantum bits or qubits instead of regular bits to process information. This allows them to handle complex calculations that would take regular computers years to complete.
The technology promises applications in drug discovery and climate research. Scientists believe quantum machines could eventually outperform today’s most powerful supercomputers on specific tasks.
Both companies remain high-risk investments. They generate limited revenue while reporting ongoing losses and trading at multi-billion dollar valuations.
Rigetti Computing has seen its stock price rise between 2,847% and 4,024% depending on the time frame measured. The company develops quantum processors using superconducting qubit technology.
In July, Rigetti announced its 36-qubit system reached 99.5% median two-qubit gate fidelity. This metric measures how accurately the system performs quantum operations. The company also cut its median 2-qubit gate error rate in half compared to previous results.
Rigetti Plans 100-Qubit System
Rigetti plans to release a quantum computer with more than 100 qubits by the end of this year. More qubits typically translate to greater computing power for quantum systems.
The Air Force Research Laboratory awarded Rigetti a three-year contract worth $5.8 million. The project focuses on developing quantum networking technology with a Dutch startup partner. This quantum networking could create secure communication systems that resist hacking attempts.
D-Wave Quantum gained 2,278% over the past year using a different approach called annealing quantum computing. This method differs from other quantum computing techniques in the market.
The company’s Advantage2 prototype contains over 1,200 qubits with 20-way connectivity. D-Wave plans to build future systems with 7,000 qubits.
D-Wave Shows Speed Improvements
J.P. Morgan analysts recently praised the Advantage2 prototype in a research report. They noted the system demonstrates speed improvements over classical supercomputers on certain problem types.
D-Wave’s technology works best for optimization problems and constraint satisfaction tasks. However, the approach has limitations for broader problem categories compared to other quantum methods.
The company uses energy-efficient quantum physics concepts to find solutions. D-Wave reports a gross margin of 82.46% while Rigetti shows a negative gross margin.
Both companies trade at valuations between $7-10 billion despite limited commercial revenue. Rigetti has a market capitalization of $10 billion while D-Wave trades at approximately $9 billion.
Wall Street analysts remain divided on these stocks. Some rate them as strong buys while others recommend caution due to high valuations relative to current revenue levels.
D-Wave Quantum reported quarterly revenue growth in its most recent earnings report.
