Quantum computing is set to revolutionize the tech industry due to its advantages over traditional computing. Two companies focused solely on quantum computing, Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS), have experienced increasing share value, prompting investors to consider which stock offers a more favorable investment opportunity.
Rigetti has gained significant financial support from the Air Force Office of Scientific Research, enabling it to build error-resistant machines and expand its operations. The company’s recent achievements include introducing the Ankaa-3 system, which boasts 84 qubits and has the potential to transform artificial intelligence (AI).
Despite a decline in revenues, Rigetti possesses minimal debt and has accumulated $575 million in cash as of June. Its recent equity offerings have generated $350 million, assisting the company in covering operational expenses.
D-Wave Quantum, on the other hand, reported revenue growth of 509% in its first quarter, driven by the delivery of its “Advantage” quantum computer system to the Jülich Supercomputing Centre in Germany. The company’s cloud-based quantum computing services are also benefiting from significant customer acquisition, including Lockheed Martin Corporation and Mastercard Incorporated.
However, both companies have reported operating losses in the first quarter, and quantum computing is still in development. These stocks face stiff competition from larger tech firms and may become takeover targets.
Investors should exercise caution before investing in Rigetti and D-Wave Quantum, as they possess considerable risk. Nevertheless, both companies have shown promising potential and are worth monitoring.
Source: https://www.nasdaq.com/articles/zacks-analyst-blog-highlights-rigetti-computing-d-wave-quantum-lockheed-martin-and