1 No-Brainer Quantum Computing Stock Down 60% to Buy on the Dip in 2025

Quantum computing is truly a potential revolutionary technology that really has only caught on in the past few years. Rooted in quantum mechanics, which describes the behavior of matter and energy at atomic and subatomic levels, quantum computers utilize specialized hardware and algorithms to manipulate qubits through quantum mechanical phenomena. That’s a fancy way of saying these supercomputers can do much more with less, allowing for previously unthought of discoveries to take place in the years to come.

However, the thing about quantum computing technology is that it’s always been a few years away. There are some leading companies in this space that have made significant breakthroughs in recent years, and one such company is Rigetti Computing (NASDAQ:RGTI). Thus, for investors looking at stocks to consider in this space, Rigetti stands out as a top option to consider.

Let’s dive into where this stock could be headed from here, and the bull case behind why Rigetti (down roughly 60% from its recent high) could be worth buying on this dip.

Rigetti’s 2024 Performance

This past year has been a rough one for investors in Rigetti, or most quantum computing companies for that matter. Comments from Nvidia (NASDAQ:NVDA) CEO Jensen Huang around the viability of quantum computing (with a suggestion that this technology could be a decade or two away) led to the initial decline in Rigetti and other top quantum players.

However, since these comments initially surfaced, investors have breathed a collective sigh of relief, as Nvidia announced it will be stepping into the quantum game over time. This about-face has led to some strong rebound buying, but investors may certainly be skeptical as to whether companies like Rigetti have what it takes to achieve their previously sky-high valuations.

That’s despite Rigetti making significant strides in quantum computing technology, notably achieving real-time quantum error correction on its 84-qubit Ankaa-2 system. This announcement bolstered investor confidence and led to a significant stock price increase of 50% following the announcement.

Additionally, Rigetti successfully launched its Ankaa-3 system in December 2024, boasting a median two-qubit gate fidelity of 99.5%, further establishing its position in the competitive quantum computing landscape. The company also secured $100 million through an equity offering to enhance its superconducting quantum computing capabilities and expand its operations. Looking ahead, Rigetti plans to introduce a modular system architecture in 2025, aiming for continued innovation and improved performance in quantum technologies.

Rigetti Does Appear to Be Quantum-Ready

The entire quantum computing sector is one that’s still in its infancy. And when it comes to nascent sectors with low visibility for future revenue and earnings growth potential, it’s generally considered to be normal to see big valuation discrepancies on headlines – whether they’re meaningful or not.

I really don’t know what to make of Huang’s flip-flop on his outlook for the quantum computing sector. And there’s going to be significant uncertainty around the company’s top and bottom line growth prospects until Rigetti can produce something fundamentally that investors can point to and model out.

But with plenty of advancements on the horizon, such as a much-anticipated release of a 36-qubit system by mid-2025, there’s plenty for investors to digest from the technology front. If Rigetti can effectively create a modular design of interconnected 9-qubit chips that targets an impressive 99.5% fidelity in two-qubit operations, there could be big upside here. We’ll have to see.

Rigetti Still Looks Like a Buy

I’m taking the long view of quantum computing technology. Our world is driven by technology, and the faster and more efficient companies can be in finding ways to deliver the latest and greatest AI models, or pack more computing power into ever-smaller devices, the better. Rigetti’s underlying platform does appear to have some substance and commercialization potential. That makes this company a relative lottery ticket I think is worth taking out as an option on this sector really taking off over the course of the next decade.

Of course, some investors may not have that kind of time to wait and see how this will all play out. But I do think that if quantum computing turns out to come as advertised (or even comes close to a fraction of its potential size as a sector), Rigetti could turn out to be a fantastic investment at these levels.

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