Quantum computing is an exciting investment field that could heat up during the second half of 2025.
More and more systems are being sold for re purposes, and Rigetti Computing's (RGTI 2. 45%) systems are among the best.
Rigetti is still down around 35% from its high at the start of the year but has rallied significantly in recent weeks. Could Rigetti Computing return to its all-time high by the time 2025 is over.
Let's take a look. Image source: Getty Images. Quantum computing will be a huge market after 2030 Rigetti Computing is a pure-play quantum computing investment.
It's not some of the other big companies that are using their cash flows to fund quantum computing re. Instead, Rigetti relies on contracts and one-off system sales to continue operations.
If it falls behind in the quantum computing race or is unable to raise additional funds, the stock will be worthless.
This highlights a key risk in in Rigetti Computing, but there is also immense upside.
Should Rigetti Computing win the quantum computing race, it could benefit from a massive market opportunity that's expected to arise over the next decade.
Before 2030, management estimates that the total market opportunity for quantum computing is apximately $1 billion to $2 billion, primarily focused on government re labs.
However, management believes that there is a $15 billion to $30 billion annual market opportunity that will arise between 2030 and 2040.
Should Rigetti Computing become the go-to option, it will be a massive win for investors. Rigetti is also taking the correct apach to building a winning quantum computing solution.
Rigetti Computing offers a full-stack solution that vides the hardware and software necessary to run and duce results with its quantum computing ecosystem.
This is similar to the apach that Nvidia (NASDAQ: NVDA) has taken with its graphics cessing units (GPUs), which have allowed it to dominate the AI race.
With Rigetti ing in smart footsteps, it's no surprise that it has emerged as one of the top choices in quantum computing.
But is that enough to pel Rigetti back to all-time highs in the back half of the year.
Rigetti Computing is still a bit behind some of its peers As Rigetti openly admits, there isn't a huge market for quantum computers right now.
As a result, any move in the stock price is due to speculation or news releases the sale of a unit. In the first quarter of 2025, Rigetti Computing's sales were a measly $1.
That's because there weren't many system sales.
However, if Rigetti reports a quarter in which it's sold several of its Novera QPUs (quantum cessing units), then the stock will ly rise on the good news.
However, this is far from certain, and it all depends on whether customers can get per funding (from the government) to re this emerging nology.
As a result, I think investors are better off keeping their distance from Rigetti stock, as there are other, more mising quantum computing plays that are generating far more revenue or have alternative models if their quantum computing investments don't work out.
Rigetti Computing could still be a huge winner in the quantum computing race, but it looks to be a laggard in the field right now. Keithen Drury has positions in Nvidia.
The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.