Rigetti Computing (RGTI +3.62%) is one of the hottest names in the quantum computing category, and the pure-play quantum-tech specialist's stock has been on an incredible winning streak. Thanks to progression for its tech, a $5.8 million research contract with the U.S. Air Force, a partnership with Nvidia, and other developments, the company's share price has rocketed 184% higher over the last year of trading.
Rigetti now has a market capitalization of roughly $8.4 billion and is valued at approximately 409 times this year's expected sales. Is the company a quantum computing leader capable of delivering more huge returns, or has the stock become overhyped?
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Can Rigetti be one of quantum computing's biggest winners?
While Rigetti's stock has been red hot over the last year, business performance has been less encouraging along some key lines. In last year's third quarter, the company posted sales of roughly $1.95 million -- down from revenue of roughly $2.38 million in the prior-year period. Meanwhile, combined sales across last year's first three quarters came in at $5.22 million -- down from $8.52 million across the same stretch in 2024.
As a young company in a nascent tech category, Rigetti's recent sales performance shouldn't be taken as a make-or-break indicator for its long-term outlook. Some potential customers likely opted to hold off on purchasing until the company launched systems with more qubits. On the other hand, hype surrounding the stock seems to be overdone when compared to recent developments for the underlying business.
For investors looking for exposure to the quantum computing space, I think that there are better plays available. In the pure-play quantum category, D-Wave Quantum's quantum-annealing approach could deliver substantially better near-term commercialization opportunities, and investments in more complex technological approaches could pay off over the long term. Meanwhile, Alphabet stands out as a diversified tech giant that has ways to win in quantum and much less downside risk due to the strengths of its core businesses.
