Key Takeaways
Buying stocks that have surged due to hype is generally not advisable. If a stock’s rise isn’t backed by actual economic improvements—like profit increases and cash flow—then it likely won’t be sustainable.
Investors in Rigetti Computing (NASDAQ:RGTI) can attest to this lesson. The quantum computing company’s stock is down about 60% from its peak of $56 last October. Surprisingly, not much has changed in the quantum computing sector, which may be due to the limited number of players involved.
Where is the best place to invest $1,000 right now? Insights from our analysts suggest a selection of the top 10 stocks to consider. Continue reading
Looking ahead to 2026, let’s explore whether Rigetti Computing might represent a worthwhile long-term investment.
What is the Next Big Technology Trend?
A quantum computer is conceptually designed to tackle complex issues by using qubits instead of traditional bits. While regular bits can be just one of two states, qubits can represent multiple states simultaneously, similar to a coin that continues to spin rather than resolving to heads or tails.
This groundbreaking technology could propel us beyond current physical and computational limits. If successful, it might lead to substantial shareholder value by enabling swift drug discovery and optimizing logistics. Rigetti aims to capitalize on this by providing hardware that can unleash value for other companies.
Already, Rigetti has created early-stage quantum computers, processors, and offers cloud services for remote access. A significant advantage for them is the ability to manufacture chips domestically in Fremont, California. This not only adds a layer of political security—given the geopolitical sensitivities surrounding quantum tech—but could also encourage other companies to venture into quantum chip manufacturing.
Will Quantum Computing be Ready in 2026?
Rigetti’s business model is indeed appealing. It focuses on addressing challenging aspects of quantum computing, which could shield it from risks faced by consumer-focused firms trying to innovate entirely new technologies. Yet, even a sound approach may falter in an industry that lacks commercial viability at present.
The third-quarter results underline these hurdles. To illustrate, revenues slid by 18% year-over-year to $1.95 billion, while operating losses soared to $20.5 billion. Rigetti’s early sales to organizations experimenting with quantum computing will hardly offset its hefty R&D expenses.
Industry leaders like Alphabet and IBM predict that functional quantum computers are still four to five years away. Given its size, Rigetti likely can’t outperform these tech giants in advancing quantum computing, which means it may not be positioned to innovate faster.
The price-to-sales ratio of 843 is notably steep compared to the S&P 500’s average of 3.4. This suggests that Rigetti’s stock may still experience a downturn as we transition into the new year.
Rigetti Computing: A Complex Case
Some stocks, like Rigetti’s, don’t fit cleanly into the buy or sell categories. It might be wiser to keep the company on your watchlist until the risk-reward balance shifts in its favor. Given the current uncertainties, Rigetti doesn’t seem like a compelling buy for 2026. However, as the technology matures, the outlook could improve.
Should You Purchase Rigetti Computing Stock Now?
Before diving into investing in Rigetti Computing, here are some thoughts:
Our analyst team from Motley Fool Stock Advisor highlighted other stocks with considerable potential, and Rigetti Computing isn’t on that list. They believe these top 10 picks may yield impressive returns in the coming years.
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