TLDR
- Rigetti Computing (RGTI) stock surged 2,847% to 4,024% in one year as investors bet on quantum computing breakthroughs
- D-Wave Quantum (QBTS) jumped 2,278% using different annealing quantum technology with over 1,200 qubits
- Rigetti achieved 99.5% accuracy on its 36-qubit system and won $5.8 million Air Force contract
- Both companies trade at multi-billion valuations despite minimal revenue and ongoing losses
- Quantum computers use qubits instead of bits to solve complex problems faster than supercomputers
Two quantum computing companies have delivered massive returns to investors over the past year. These stocks have gained attention as the technology promises to solve complex problems beyond current computer capabilities.
Quantum computers work differently from regular computers. Instead of using bits for processing information, they use qubits that can handle much more complex calculations.
The potential applications include drug development and climate change solutions. If successful, these machines could outperform today’s best supercomputers.
However, these investments carry high risks. Both companies generate little revenue and report losses while trading at billion-dollar valuations.
The quantum computing sector has attracted investor interest alongside the artificial intelligence boom. Many believe quantum machines represent the next major computing breakthrough.
Rigetti Computing Shows Technical Progress
Rigetti Computing stock has gained between 2,847% and 4,024% in the past year depending on the measurement period. The company builds quantum processors using superconducting qubit technology.
In July, Rigetti announced its 36-qubit system achieved 99.5% median two-qubit gate fidelity. This measurement shows how accurately the system performs quantum operations.
The company also reduced its median 2-qubit gate error rate by half compared to previous results. These improvements demonstrate technical progress in quantum processor development.
Rigetti plans to release a quantum computer with over 100 qubits by year-end. More qubits generally mean more computing power for quantum systems.
The Air Force Research Laboratory recently awarded Rigetti a three-year, $5.8 million contract. The project involves developing quantum networking technology with a Dutch startup partner.
This quantum networking could create unhackable communication systems. The technology represents a potential evolution of current internet infrastructure.
D-Wave Quantum Uses Different Approach
D-Wave Quantum gained 2,278% over the past year using annealing quantum computing technology. This approach differs from other quantum computing methods in the market.
The company’s Advantage2 prototype contains over 1,200 qubits with 20-way connectivity. D-Wave aims to eventually build systems with 7,000 qubits.
J.P. Morgan analysts praised the Advantage2 prototype in a recent report. They noted the system shows speed improvements over classical supercomputers on specific problems.
The technology works well for optimization problems and constraint satisfaction tasks. However, the approach has limitations for broader problem types compared to other quantum methods.
D-Wave uses energy-efficient quantum physics concepts to find precise solutions. The company’s gross margin of 82.46% exceeds Rigetti’s negative gross margin.
Both companies trade at valuations around $7-10 billion despite limited commercial revenue. Rigetti has a market cap of $10 billion while D-Wave trades at approximately $9 billion.
Wall Street analysts show mixed opinions on these stocks. Some rate them as strong buys while others recommend caution due to high valuations.
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