Why does Wall Street believe these 2 quant count stocks?

Quantum computing is still in the early stages of development, but its potential to change industries is huge, especially when integrated with artificial intelligence (AI). Wall Street here therefore highlights the qualities of the two companies.

The global quantum computing market is expected to grow from $1.1 billion in 2024 to $12.6 billion by 2032. For investors looking for companies in this revolutionary sector, there are two companies that are considered attractive by Wall Street analysts.

D-Wave Quantum $QBTS

D-Wave Quantum (QBTS) is a company with a market capitalization of $1.5 billion. It was the first to launch a commercial quantum computer and specializes in quantum annealing, which is different from the general-purpose quantum computers being developed by companies like IBM and Google.

The company's flagship product, the Advantage Quantum Computer, has over 5,000 qubits and the company provides the cloud-based Leap platform for remote access to quantum resources. In the third quarter of 2024, the company reported revenue of $1.9 million, with quantum services revenue up 41% and government contracts up 66%.

Despite ongoing R&D investments and operating losses, analysts are confident in the company's long-term potential. Six of the seven analysts covering $QBTS rate the stock a Strong Buy.

Rigetti Computing $RGTI

Rigetti Computing (RGTI) is another promising quant company with a market cap of $3.4 billion. It focuses on superconducting qubit technology, and its Quantum Cloud Services (QCS) provide cloud access to quantum computing.

In the third quarter of 2024, Rigetti reported revenue of $2.4 million, which was below expectations. However, the company announced the launch of its new Ankaa-3 quantum system with 84 qubits, which will be available on Amazon Braket and Microsoft Azure platforms.

In 2025, Rigetti plans to introduce a 36-qubit system with interconnected chips and aim to achieve 99.5% fidelity of two-qubit gates. Analysts expect revenue to decline 8.3% in 2024, but then grow 41.5% in 2025. Most analysts rate Rigetti stock a "Strong Buy."

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Source: Barchart