Recent advancements in quantum computing have propelled the field into new realms of possibility. Notably, researchers at the University of Oxford have achieved a significant milestone by demonstrating quantum teleportation of logical gates across networked quantum processors.
This breakthrough addresses the scalability challenges that have long hindered practical quantum computing applications.
As the industry stands on the cusp of transformation, investors may find promising opportunities in companies poised to capitalize on these developments. Two such stocks are Rigetti Computing and Alphabet Inc.
Rigetti Computing – A Pioneer in Quantum Technology
Rigetti Computing (NASDAQ: RGTI) specializes in building quantum computers and the superconducting processors that power them.
The company integrates these machines into various cloud platforms through its Quantum Cloud Services, making quantum computing accessible to a broader audience.
Recent Developments and Financial Performance
In 2025, Rigetti announced ambitious plans to release a 36-qubit system mid-year, based on 49-qubit chips targeting a 99.5% median two-qubit gate fidelity.
By year-end, the company aims to launch a 100-plus-qubit system with similar fidelity levels, followed by the development of a 336-qubit system. These advancements position Rigetti at the forefront of quantum computing innovation.
Financially, Rigetti reported revenues of $12.01 million in 2023, a slight decrease from $13.10 million the previous year. Losses stood at $75.11 million, a 5.01% increase from 2022.
As of September 30, 2024, the company held $92.6 million in cash and investments, with an additional $12 million raised through stock sales, ensuring operational sustainability for the next 12 months.
Analyst Insights
Analysts remain optimistic about Rigetti’s prospects. B. Riley recently raised its price target from $8.50 to $15.00, maintaining a “buy” rating. The consensus among five analysts is a “Strong Buy,” with a 12-month price target of $5.70.
It’s important to note that stock prices are subject to market fluctuations, and potential investors should conduct thorough research before making investment decisions.
Alphabet Inc. – Leveraging Quantum Advancements
Alphabet Inc. (NASDAQ: GOOG), the parent company of Google, has made significant strides in quantum computing through its Quantum AI division. The recent unveiling of its quantum processor, Willow, marks a pivotal moment in the company’s technological evolution.
Willow Processor Breakthrough
The Willow processor has achieved two notable milestones:
- Error Reduction: By scaling up the number of qubits, Willow has significantly reduced quantum bit errors, a longstanding challenge in the field.
- Benchmark Performance: Willow completed a benchmark computation in under five minutes—a task that would take traditional supercomputers billions of years.
These advancements not only enhance computational efficiency but also position Alphabet as a leader in the race toward practical quantum computing applications.
Financial Strength and Market Position
Alphabet’s robust financial health supports its ventures into emerging technologies. With $23.5 billion in cash reserves and $72.8 billion in free cash flow generated in 2024, the company is well-equipped to sustain investments in quantum research without immediate pressure for commercial returns.
The quantum computing market is projected to reach $850 billion by 2040, offering substantial opportunities for revenue diversification.
Alphabet’s early and substantial investments in this sector may provide a competitive edge as the technology matures.
Analyst Perspectives
Among 50 analysts covering Alphabet, 38 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and nine advise “Hold.”
The average target price is $218.75, indicating a potential upside of approximately 20% from current levels. As with any investment, it’s crucial to consider market dynamics and conduct comprehensive due diligence.
Key Metrics and Projections
The following table summarizes essential financial metrics and projections for Rigetti Computing and Alphabet Inc.:
| Metric | Rigetti Computing (RGTI) | Alphabet Inc. (GOOG) |
|---|---|---|
| Market Capitalization | $2.25 Billion | $1.5 Trillion |
| 2023 Revenue | $12.01 Million | $282.8 Billion |
| Net Loss (2023) | $75.11 Million | N/A |
| Cash Reserves | $92.6 Million | $23.5 Billion |
| Analyst Rating | Strong Buy | Strong Buy |
| 12-Month Price Target | $5.70 | $218.75 |
FAQs
What is quantum teleportation?
Quantum teleportation involves transferring quantum information between distant systems without a physical connection.
Why is Rigetti Computing considered a promising investment?
Rigetti is at the forefront of developing scalable quantum computing systems. With ambitious plans to release advanced qubit systems and a strong financial position, the company is well-positioned to capitalize on the growing demand for quantum computing solutions.
How is Alphabet Inc. contributing to quantum computing advancements?
Alphabet’s Quantum AI division has developed the Willow processor, which has achieved significant milestones in error reduction and computational speed, positioning the company as a leader in quantum computing research and development.