Quantum computing presents significant opportunities for a range of industries, including material science, pharmaceuticals, and healthcare, which are generating increased interest in quantum computing stocks. One prominent company in this space, Rigetti Computing (NASDAQ: RGTI), has seen an astonishing 943% increase in its stock price over the past year, attracting the attention of potential investors.
Despite these impressive gains, prospective buyers must carefully consider the implications of investing in Rigetti’s stock today and where the company might be in the next few years. While quantum computers promise to outperform traditional systems due to their ability to process data on a much larger scale, the technology remains largely in development. Investors are optimistic because the quantum computing market could be worth $173 billion by 2040. Rigetti, which provides complete quantum computing solutions, has established collaborations with major tech firms such as Microsoft and Amazon, positioning itself strategically.
However, the reality for Rigetti is more complex. Recently, the company reported a substantial sales decline of 52% in the first quarter of 2025, with revenues falling to just $1.5 million. This drop comes on the heels of a 10% decrease in overall sales from the previous year, leading to an operating loss of nearly $22 million, worse than the prior year’s $16.5 million loss.
CEO Subodh Kulkarni indicated during an earnings call that achieving “quantum advantage” — where quantum systems outperform classical computers — is at least three to five years away, suggesting that the company may not see significant revenue improvements in the short term. The current astronomical price-to-sales ratio of 290 for Rigetti underscores that investors may be overpaying for a speculative company still grappling with fundamental challenges.
Given these factors, it might be prudent for investors to keep their distance from Rigetti’s stock for the time being until there are clear indicators of revenue growth and practical applications for quantum technology.
In light of this situation, investors may want to explore other opportunities within the tech sector that are showing more immediate potential for growth. It’s crucial to stay informed and exercise caution in aiming for sound investment decisions.
The potential for quantum computing remains vast, and while Rigetti is currently facing hurdles, continued advancements in the field could lead to breakthroughs in the future—offering hope for the industry as a whole.