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Artificial intelligence (AI) defined the stock market in 2023 and 2024, and companies like Nvidia (NVDA) and Palantir (PLTR) became household names. Although analysts are still bullish on AI in 2025 and beyond, some on Wall Street are ready to pivot to the next big thing: quantum computing.
Defined as as using quantum mechanics to perform computing tasks that regular computers are incapable of, quantum computing promises to enable things like advanced drug discovery and create better, higher-power batteries. Long a concept relegated to science fiction, companies made breakthroughs in 2024 that have brought quantum computing stocks into reality. The most notable is the introduction of the Willow chip from Google (GOOGL), which solved a computing problem in 5 minutes that would have taken regular supercomputers 10 septillion years.
With Wall Street eyeing further advancements in 2025, quantum computing stocks have been soaring to record highs and earning praise from analysts. Two in particular have “Strong Buy” consensus ratings and are worthy of attention now.
Quantum Computing Stock #1: Rigetti Computing
California-based Rigetti Computing contributes to quantum computing in two main ways. The first is that it supplies integrated circuits that are used in quantum chips. The second is that it provides a cloud platform, Forest, that allows programmers to write quantum algorithms. According to the company, it is focused on achieving narrow quantum advantage – a point at which it is better and cheaper to use a quantum computer to solve problems.
RGTI stock is up over 1,870% in the past 52 weeks and 507% over just the past month. Boosted by the Willow unveiling, shares hit a new record high of $20.37 on Jan. 3.
For the third quarter of 2024, Rigetti posted revenue of $2.4 million, down from $3.1 million in the same quarter of 2023. Its gross profit of $1.2 million was also down from $2.3 million in the year-ago period, and its loss from operations widened. The company attributed this to a delay in reauthorization of key government funding and lower-margin contracts.
However, looking to the new year, Rigetti plans to reveal new system architecture as well as a 36-qubit system, followed by a 100-qubit system and then a 336-qubit system. These incremental improvements from Rigetti are set to demonstrate its scientific capabilities and commercialization prospects.
Analysts have a “Strong Buy” consensus rating on RGTI stock, although it has already surpassed its median price target of $5.20 and its Street-high price target of $12. Encouraging Q4 results or announcements regarding its roadmap could lead to analysts positively rerating its stock early in 2025.
Quantum Computing Stock #2: D-Wave Quantum
D-Wave Quantum (QBTS), another California-based company, gained notoriety as it is the first company to commercially release a quantum computer. It says “we are the only quantum computing company that is a full-stack technology provider. We build and deliver the systems, cloud services, application development tools, and professional services to support the end-to-end quantum computing journey for enterprises and developers.” Its Advantage quantum computer and Leap cloud service give customers access to quantum computing capabilities.
QBTS stock is up 1,084% over the past 52 weeks and 232% in the past month. Shares also just hit a record high of $11.41 on Dec. 27, although they have pulled back slightly to trade in the $9.70 range.
In the third quarter, D-Wave announced a $0.7 million drop in revenue to $1.9 million. However, its QCaaS – or quantum computing as a service – revenue was up 41% to $1.6 million. The company attributed this to a higher average revenue per customer in Q3. Its gross profit fell from $1.5 million to $1 million due to lower professional services revenue.
Like with Rigetti, the timing of contracts and the money it must spend on research and development drive fluctuations in its quarterly results.
Looking ahead, D-Wave is eyeing the commercial launch of its Advantage2 quantum computer, which will use 4,400 qubits, having successfully calibrated an Advantage2 processor in Q3. Plus, the company released a new roadmap in July 2024 that shows it plans on helping customers leverage its technology for more artificial intelligence and machine learning use cases.
Analysts have a “Strong Buy” consensus rating on QBTS stock, although like RGTI, the stock has already surpassed its mean price target of $5.18 and its Street-high price target of $9.
