Two of the quantum computing stocks that caught the imagination of investors last year were D-Wave Quantum (QBTS +0.05%) and Rigetti Computing (RGTI 0.77%). Both stocks experienced exponential gains as quantum computing was thrust into the spotlight as the next potential big technological breakthrough after artificial intelligence (AI).
Quantum computing is still largely in the experimental phase, as companies work to solve the biggest issues facing the technology today. Perhaps the biggest problem to solve is that the technology is error prone.
Since quantum computing uses quantum bits, or qubits, instead of traditional computing bits, the systems are not as stable. Because qubits are not in a stable fixed state like bits, they are much more fragile and have the potential to be influenced by outside forces like changes in temperature or vibrations.
Once this is addressed, there are then other issues to solve, such as scaling thousands, or even millions, of qubits and designing architecture with efficient qubit connectivity.
Still, companies are pushing forward, and Nvidia CEO Jensen Huang said last June that quantum computing was nearing an inflection point and close to solving practical problems. That was a big shift from what he said about the technology earlier in the year, showing how quickly advancements are being made in the field.
Let's look at whether D-Wave or Rigetti Computing seems the better quantum computing stock to own.
Image source: Getty Images.
D-Wave Quantum
D-Wave is best known as a leader in quantum annealing. This is a more specialized approach, and likely not the first thing you think of when it comes to quantum computing. Quantum annealing isn't going to solve the world's most difficult math problems; instead, it is focused on finding optimal solutions for specific problems by settling on the best solution.
NYSE: QBTS
Key Data Points
Because it is more specialized and less complex, the technology is more mature than the gate-based approach most companies are pursuing. However, with annealing, D-Wave is now producing systems for commercial use that can help companies with such tasks as supply chain optimization. The company has more than 100 paying customers and is seeing its revenue and bookings grow.
However, the company is also moving into gate-based quantum computing. It completed two large at-the-market secondary stock offerings during 2025 to boost the cash on its balance sheet, which it recently put to use acquiring Quantum Circuits. By combining Quantum Circuits' dual-rail technology with its own, D-Wave is looking to develop an error-correcting, gate-based system.
Rigetti Computing
Rigetti Computing is pursuing a more universal gate-based quantum system that theoretically should be able to solve more complex computational problems. The company uses a modular chip architecture that should be able to help it scale, and it also owns its own manufacturing facility, which can help speed up chip design and manufacturing.
NASDAQ: RGTI
Key Data Points
The company's strength is speed, with its systems reportedly more than 1,000 times faster than those from competitor IonQ. Where Rigetti is behind is with accuracy. Its systems have achieved up to 99.5% 2-gate fidelity, which trails the 99.99% achieved by IonQ. Both of these rates are still considered error-prone, but Rigetti would have a clear edge over competitors if it could make an error-reduction breakthrough. Rigetti has also partnered with AI leader Nvidia, with its system capable of being integrated into Nvidia's new NVQLink platform.
Rigetti has made a few sales of its Novera QP system and has a three-year contract with the U.S. Air Force. However, its overall revenue is pretty minimal, and the company was not chosen for Stage B of the DARPA (Defense Advanced Research Projects Agency) Quantum Benchmarking Initiative (QBI) program after being one of the initial 18 companies selected to participate in the program.
The verdict
Of the two, I prefer D-Wave. It's carved out a niche in quantum annealing, which is starting to be commercialized, and now it's pursuing a gate-based system. This is a smart approach, as its annealing business can help lay the foundation for its gate-based quantum endeavors.
Conversely, Rigetti has lagged competitors in terms of accuracy, and not advancing in the DARPA program is a blow. Rigetti also recently delayed the general availability of its new 108-qubit machine due to fidelity problems, highlighting its accuracy issues.
