Wall Street’s interest in quantum computing is growing daily, with market participants expecting it to have the same impact as generative artificial intelligence (AI) in the new year. As a result, a $2 billion quantum computing stock Rigetti Computing, Inc. RGTI has outperformed $3.2 trillion NVIDIA Corporation NVDA this year by a substantial margin (+495.3% vs. +164.7%), leaving the latter lagging in terms of growth.
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This year, NVIDIA’s shares have surged due to an increase in data center graphic processing unit (GPU) sales in the booming AI market. But why have Rigetti Computing’s shares recently skyrocketed, and is it a recommended buy for next year? Let’s see –
Unlike traditional computers, quantum mechanics are being used by quantum computers to solve problems at a faster pace. Recently, a potential breakthrough in the quantum computing space by Alphabet Inc.’s GOOGL AI division boosted quantum computing stocks including Rigetti Computing. Alphabet claimed that its advanced quantum computing chip, Willow, can reduce errors and pave the way for large-scale quantum computers.
Amazon.com, Inc.’s AMZN recent announcement of its Quantum Embark program, which is designed to help organizations adopt quantum computing as per their needs also propelled quantum computing stocks higher, like Rigetti Computing. Furthermore, the U.S. lawmakers’ initiatives to push for $2.7 billion in funding for quantum computing boded well for the RGTI stock.
The market size of global quantum computing is valued at $1.3 billion this year and is expected to witness a CAGR of 32.7% to $5.3 billion by 2029, according to marketsandmarkets. McKinsey estimated the value of the worldwide quantum computing market to grow to $1.3 trillion by 2035 as demand for quantum machine learning and optimization increases.
Rigetti Computing is favorably placed to make the most of the growth in the quantum computing space, which should boost its share price. This is because Rigetti Computing empowers developers to use quantum computing resources, establishing its leadership in developing quantum computing systems. Rigetti Computing has already built an easy-to-access Quantum Cloud Services platform that works with traditional computer hardware and offers huge cost savings for clients.
Rigetti Computing launched its new Novera quantum processor with 9 qubits, which has witnessed a rise in orders in Singapore. Rigetti Computing plans to deploy its 84-qubit Ankaa-3 system, roll out both modular and non-modular system architecture, and introduce a powerful 336-qubit system soon.