The Better AI Stock: IonQ vs. Rigetti Computing

When investors talk about the artificial intelligence (AI) market, they certainly pay attention to GPU makers. Nvidiagenerative AI instrument developers value OpenAI, AI-boosting cloud giants value Microsoftrecord centers and network chip manufacturers appreciate Broadcom. But these investors will certainly not see the capabilities of artificial intelligence that will fuel the emerging quantum computing market.

Quantum laptop programs can route binary bits of zeros and ones simultaneously, while weird and wonderful laptop programs route those bits individually. This difference allows quantum laptop programs to target increased shares of knowledge at a much faster cost, but they are much larger and more expensive and more error-prone than weird and wonderful laptop programs. As a result, they are no longer used as often to direct AI functions as fact-centric GPUs.

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Still, over the next few years, quantum computing companies plan to miniaturize their chips, reduce the cost of errors, and make them more cost-effective. In addition, they additionally provide their quantum computing power as essentially cloud-based businesses and products. These improvements could perhaps accidentally perhaps additionally build them as large recommended for stress AI functions.

Two quantum computing companies that can increase the enjoyment of this pattern are IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI). Let’s see which of these early adopters will be a deeper investment.

Differences and similarities between IonQ and Rigetti

IonQ sells three types of quantum computing software: its high-level quantum utility Aria, its industry-oriented Uniqueness utility, and its local Uniqueness Endeavor utility. In addition, it presents its quantum computing power as a completely completely cloud-based medium. It mainly sells its goods and companies and products to clients of mountain authorities and universities.

It additionally constructs “trapped ion” technology, which additionally would undoubtedly reduce the width of a quantum processing unit (QPU) from about a foot to about an inch. This direction of miniaturization could, coincidentally, further pave the way for the trend of more cost-effective and extremely large quantum computing programs in the long run.

But then those efforts suffered a setback when its co-founder and chief scientist Chris Monroe — who pioneered trapped ions — resigned without warning last year. But IonQ has grown steadily since Monroe’s departure by adding additional programs, signing new deals with authorities and securing new AI partnerships.

Rigetti designs and manufactures its own QPUs and allows developers to write their own quantum algorithms on its Woodland cloud platform. This one-stop shop mannequin is an “elephant fund” quantum computing company.

Admire the IonQ, Rigetti also aims to assemble more cost-effective and additionally scalable QPUs for industrial customers. However, Chad Rigetti, who founded the company in 2013, stepped down as chairman, CEO and director in December 2022. This sudden departure was once a source of concern, but Rigetti later allayed those fears with two well-known product launches.

Last December, Rigetti unveiled its Novera QPU, a 9-qubit industrial version of its $900,000 quantum laptop. Several well-known authorities and research clients have already ordered these QPUs. In addition, it has currently launched its first 84-qubit Ankaa-3 facility, designed to detect more than 99% of its processing errors, and plans to launch an additional large 100-qubit facility this year with an unbiased increased error detection fee.

Which company has a brighter future?

Both IonQ and Rigetti went public through mergers with special purpose acquisition companies (SPACs), and they certainly shrugged off their rosy pre-merger ratings. IonQ perfect generated $22 million in earnings in 2023, when it ranks second with its $34 million authentic process. Rigetti made a correct profit of $12 million in 2023, which in addition generally neglected its credible guidance of $34 million.

But both stocks hit all-time highs in December 2024 as bulls applauded their latest advance. From 2023 to 2026, analysts project IonQ’s revenue to grow at a compound annual growth rate (CAGR) of 89% to $148 million, and Rigetti’s revenue to reach $35 million at a delayed 43% CAGR.

Each company is expected to remain unprofitable for the foreseeable future. Coincidentally, IonQ and Rigetti may have further encouraged dilution of their stakes to raise cash and hedge their stock based on full compensation. IonQ has grown its parts count by an impressive 10% since the SPAC merger, while Rigetti has grown its parts count by 69% since its debut.

Each share is highly valued. With the Endeavor price of $8.8 billion, IonQ is already trading at 59 copies of its estimated 2026 sales. The Endeavor price of $4.3 billion is simply a whopping 123 copies of its projected 2026 sales.

Easier to buy: IonQ

Coincidentally, the quantum computing market could develop even more calmly at a CAGR of 34.8% from 2024 to 2032, according to Fortune Industry Insights, with smaller chips and additional costs for enjoyable error detection. IonQ and Rigetti might incidentally raise the enjoyment of this secular expansion further, but investors might incidentally possibly think even more calmly about their skyrocketing valuations. I wouldn’t rush to buy either of these speculative stocks, but IonQ’s superior volume, increased growth costs, milder dilution and lower valuation clearly make for a deeper buy, according to Rigetti.

Invest $1000 in IonQ within the event, now what?

Before you buy IonQ stock, consider this:

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Leo Solar has no location in any of the stocks discussed. The Motley Fool has positions and recommends Microsoft and Nvidia. The Motley Fool recommends Broadcom and recommends the following alternatives: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and substantially no longer affect Nasdaq, Inc.