Quantum computing is a new pillar supporting the artificial intelligence (AI) revolution, and industry analysts expect the technology to add trillions in economic value over the coming decades.<\/p>\n<\/li>\n
While its share price of $13 might give the appearance of a cheap stock, Rigetti’s valuation multiples are sky-high compared to other leading AI opportunities.<\/p>\n<\/li>\n<\/ul>\n
For the last few years, artificial intelligence (AI) has emerged as a forceful megatrend fueling the stock market to new heights.<\/p>\n
Sophisticated chipsets known as graphics processing units (GPUs) represent the foundation on which generative AI applications are being developed. While GPUs remain an integral technology across both hardware and software, a new piece of infrastructure is beginning to emerge as the second layer in the AI pyramid: quantum computing.<\/p>\n
Where to invest $1,000 right now?<\/strong> Our analyst team just revealed what they believe are the 10 best stocks <\/strong>to buy right now. Continue \u00bb<\/strong><\/a><\/p>\n While quantum computing is not a widely commercialized product yet, AI companies, both large and small, are swiftly investing in its development. From “Magnificent Seven” members such as Nvidia<\/strong>, Microsoft<\/strong>, Alphabet<\/strong>, and Amazon<\/strong> to lesser-known businesses like IonQ<\/strong> and D-Wave Quantum<\/strong>, there is no shortage of companies looking to get involved in this disruptive technology.<\/p>\n One quantum computing stock that has managed to fetch a lot of attention over the last year is Rigetti Computing<\/strong>(NASDAQ: RGTI). With shares trading for below $15, is now a lucrative opportunity to start buying? Read on to find out.<\/p>\n Quantum computing is a promising opportunity, and…<\/p>\n Given the small scale of quantum computing right now, industry estimates over its total addressable market<\/a> (TAM) vary considerably. What is more widely accepted is that the power of these computers could bring a new wave of efficiency and discovery in industries such as cybersecurity, financial services, and pharmaceuticals.<\/p>\n According to a study from Statista, quantum computing could create up to $850 billion in economic value creation over the coming decades. Management consulting firm McKinsey & Company is even more bullish, calling for $1.3 trillion in added value by the next decade thanks to quantum computing.<\/p>\n … Rigetti Computing has gotten a lot of attention, but…<\/p>\n The chart below illustrates’ Rigetti Computing’s share price dynamics over the last year. Throughout most of 2024, shares of Rigetti were hovering around penny stock<\/a> levels.<\/p>\n RGTI<\/a> data by YCharts<\/a><\/p>\n However, toward the end of the year, Rigetti stock started going parabolic. In my eyes, this rapid ascent can be tied to a number of different factors.<\/p>\n First, back in December, AI leader Alphabet teased investors with a little preview of its own quantum computing chip, Willow<\/a>. In addition, both the S&P 500<\/strong> and Nasdaq Composite<\/strong> indexes experienced notable increases during the last three months of 2024.<\/p>\n To me, shares of Rigetti initially became caught up in more of a bullish macro sentiment around the quantum computing opportunity and broader market trends in general.<\/p>\n But notice how shares took a nosedive back in January, following several weeks of sharp gains. Rigetti’s sell-off earlier this year came after Nvidia CEO Jensen Huang made comments alluding to quantum computing’s usefulness being several years away<\/a>.<\/p>\n While Rigetti stock has since rebounded from low points earlier this year, the stock has mostly traded sideways over the last several months.<\/p>\n Image source: Getty Images.<\/p>\n … smart investors need to understand the full valuation picture<\/p>\n When it comes to valuing a stock, smart investors understand that there is much more to look at than the share price. While a $13 stock price might look cheap, consider that Rigetti Computing boasts a market capitalization of $4.2 billion. Given the company has only generated about $9 million in sales over the last 12 months, that implies Rigetti stock is trading at a price-to-sales<\/a> (P\/S) multiple north of 320.<\/p>\n RGTI PS Ratio<\/a> data by YCharts<\/a><\/p>\n To put this into context, Rigetti’s P\/S multiple is in a completely separate universe compared to the AI industry’s biggest developers.<\/p>\n Even though the appearance of a low share price might imply the company is trading for a discount<\/a>, the valuation trends explored above suggest otherwise.<\/p>\n Not only is Rigetti stock overbought, but the valuation expansion pictured above is unsustainable<\/a>. I would pass on Rigetti Computing stock right now. I see the company as a highly speculative opportunity in an emerging field that is still developing.<\/p>\n Should you invest $1,000 in Rigetti Computing right now?<\/p>\n Before you buy stock in Rigetti Computing, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Rigetti Computing wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider whenNetflix<\/strong>made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,you\u2019d have $699,558<\/strong>!* <\/strong>Or when Nvidia<\/strong>made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,you\u2019d have $976,677<\/strong> Now, it\u2019s worth notingStock Advisor\u2019s total average return is1,060% \u2014 a market-crushing outperformance compared to180%for the S&P 500. Don\u2019t miss out on the latest top 10 list, available when you joinStock Advisor.<\/strong><\/p>\n See the 10 stocks \u00bb<\/strong><\/a><\/p>\n *Stock Advisor returns as of June 30, 2025<\/p>\n Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool\u2019s board of directors. Adam Spatacco<\/a> has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy<\/a>.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Quantum computing is a new pillar supporting the artificial intelligence (AI) revolution, and industry analysts expect…\n","protected":false},"author":2,"featured_media":245337,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3164],"tags":[3284,11239,51060,51059,51062,51061,11237,33071,52614,53,6621,16,15],"class_list":{"0":"post-245336","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-computing","9":"tag-futures","10":"tag-index-market-quote","11":"tag-index-market-quotes","12":"tag-index-market-symbol","13":"tag-index-market-symbols","14":"tag-indices","15":"tag-rgti","16":"tag-rigetti-computing-inc","17":"tag-technology","18":"tag-the-globe-and-mail","19":"tag-uk","20":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114812155730254383","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/245336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=245336"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/245336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/245337"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=245336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=245336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=245336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"RGTI](\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/f413b15a18813efd00e80f18d18773be\/%3Furl%3Dhttps%253a%252f%252fmedia.ycharts.com%252fcharts%252fc25cc50fae3c293a5b4f6d9ee9f61e7d.png%26amp%3Bw%3D700\"\/)
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