Quantum Computing Stock Showdown: Rigetti Computing vs. D-Wave Quantum

Rigetti Computing and D-Wave Quantum are two pure-play quantum companies to consider investing in. Rigetti offers a full suite of quantum computing solutions and has been awarded funding by the Air Force to improve chip manufacturing. However, its first-quarter sales plunged 52% YoY to $1.5 million. D-Wave Quantum's quantum annealing approach is ideal for finding the best solution to a problem with many possible outcomes. The company generates income by selling access to its technology over the cloud and professional services.

Quantum computing stocks have been capturing investor attention, with Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum (NYSE: QBTS) emerging as prominent players in the field. Both companies are poised to benefit from the expected growth in the quantum computing industry, which is forecast to expand from $4 billion in 2024 to $72 billion by 2035 [1].

Rigetti Computing offers a full suite of quantum computing solutions, from chip design and fabrication to software for operating the systems. The company received funding from the Air Force Office of Scientific Research in April to improve quantum chip manufacturing techniques [1]. Rigetti's latest quantum computer, Ankaa-3, boasts an error rate half that of its predecessor, indicating technological advancements. However, Rigetti's first-quarter sales plunged 52% year over year to $1.5 million, extending a trend of declining revenue [1]. Rigetti executed an equity offering that raised $350 million, amassing $575 million in cash, cash equivalents, and short-term investments with no debt [1].

D-Wave Quantum, on the other hand, constructed a quantum computer capable of completing complex calculations in minutes that would take a supercomputer millions of years [1]. The company's CEO, Dr. Alan Baratz, called this an industry first, highlighting the potential of quantum annealing for solving problems with many possible outcomes. D-Wave generates income by selling access to its technology over the cloud and providing professional services. In the first quarter, D-Wave hit record revenue of $15 million, a 509% year-over-year increase, driven by the sale of its first quantum computer [1]. However, Q1 bookings were down 64% year over year to $1.6 million, suggesting a decline in demand for D-Wave's offerings [1]. D-Wave executed a $400 million equity offering in June, amassing $815 million in cash, significantly overshadowing its Q1 total liabilities of $118.2 million [1].

Both Rigetti and D-Wave face challenges in producing sustainable revenue growth and operating profitable businesses. Rigetti's Q1 operating loss was $21.6 million, while D-Wave's was $11.3 million [1]. Analyzing their price-to-sales (P/S) ratios, D-Wave appears to be the better value, with a lower P/S multiple compared to Rigetti [1]. However, D-Wave's shares are not cheap, given the high P/S ratio compared to a year ago [1].

Investors should wait for D-Wave's Q2 earnings results to assess if its Q1 performance was an anomaly and for its share price to drop before considering an investment. Rigetti's technological strides and market momentum have led to a surge in its stock price, but its financial landscape presents challenges [2]. The company continues to grapple with expenses towering over its revenue, with a crippling profit margin of negative 1,493.98 and a revenue per share of $0.037 [2]. Despite these challenges, Rigetti's current ratio of 18.8 suggests robust liquidity, and its long-term debt ratios bolster its growth strategy [2].

In conclusion, both Rigetti Computing and D-Wave Quantum have the potential to benefit from the growth in the quantum computing industry. However, investors should closely monitor their financial performance and technological advancements before making investment decisions.

References:
[1] https://finance.yahoo.com/news/better-quantum-computing-stock-rigetti-222000641.html
[2] https://stockstotrade.com/news/rigetti-computing-inc-rgti-news-2025_07_31/