Rigetti Computing vs. SoundHound AI: Which Tech Stock Is a Better Buy in 2026?

Is the future of computing quantum or conversational? Investors deciding between Rigetti Computing (NASDAQ:RGTI) and SoundHound AI (NASDAQ:SOUN) must choose which high-growth technology offers the better long-term potential for their portfolios.

Rigetti is a pioneer in building superconducting quantum computers, while SoundHound provides voice-enabled artificial intelligence software for diverse industries. They are being compared because both represent small-cap bets on the next generation of artificial intelligence, though they operate at opposite ends of the hardware and software spectrum.

The case for Rigetti Computing

Rigetti sells superconducting quantum processors and cloud-based quantum services to research and commercial clients. The company remains a pioneer among tech stocks, particularly within the nascent quantum hardware industry. It serves customers through its Quantum Cloud Services platform, targeting complex problems in fields like climate simulation and drug discovery. Major partners include Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), which provide broad cloud access to its hardware. Significant government clients like DARPA also utilize its technology, and such customer concentration adds a layer of risk to the business.

In FY 2025, according to its latest annual report, revenue reached nearly $7.1 million. This represented a decline of approximately 34.3% compared to the prior year. The company reported a net loss of roughly $216.2 million for the same period. This resulted in a negative net margin of approximately 3,050.4%, highlighting the intense research and development costs required to build and scale quantum processors.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x. This ratio, which compares total debt to shareholder equity, indicates the company currently carries no debt on its books. The current ratio, measuring the ability to pay short-term bills with short-term assets, was approximately 37.4x. Free cash flow for FY 2025 was nearly negative $77.2 million. Free cash flow represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The case for SoundHound AI

SoundHound creates voice-enabled AI software used in cars, restaurants, and smart devices. Its Houndify platform allows businesses to build natural conversational interfaces for their products. The company recently completed the acquisition of LivePerson, which helped integrate advanced customer engagement and agentic AI tools into its stack. SoundHound serves various sectors, including automotive and hospitality, through royalties and subscription contracts. Revenue is primarily derived from these long-term service contracts and the monetization of voice-enabled interactions.

In FY 2025, revenue reached nearly $168.9 million, an increase of approximately 99.4% over previous results. The company reported a net loss of roughly $14.0 million for the fiscal year. This narrowed its negative net margin to approximately 8.3%, indicating that the business is scaling its voice AI services more efficiently than in previous periods. This top-line growth reflects the increasing demand for conversational AI across enterprise and consumer markets.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x. This indicates that the company has no total debt relative to its shareholder equity. The current ratio was roughly 4.6x, measuring the company's ability to cover its short-term debts with its short-term assets. Free cash flow for FY 2025 was approximately negative $103.1 million. This reflects the significant cash burn required to scale its software platform and integrate large acquisitions like LivePerson.

Risk profile comparison

Rigetti faces risks as an early-stage company with significant accumulated deficits and a continued need for external capital to fund operations. There are substantial technological hurdles to achieving quantum advantage, and failing to meet development milestones could hurt investor confidence. High customer concentration is another factor, with much of its revenue coming from a few government entities and cloud partners. Global competition from well-funded sovereign programs and giant technology firms remains intense in the quantum space.

SoundHound deals with persistent cash burn as it scales its operations to compete in the crowded AI software market. The company faces significant execution risks following the integration of LivePerson, which could impact its financial stability if synergies are not realized. Competition from larger technology companies like Amazon or Microsoft presents ongoing pricing pressure and may limit market share. There are also potential regulatory hurdles regarding the use of generative AI technologies and data privacy concerns that could impact adoption.

Valuation comparison

Neither company currently has a positive Forward P/E based on future earnings estimates, so investors often look to the P/S ratio for comparison. The P/S ratio measures a stock's market value against its sales over the past twelve months.

Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with SoundHound AI, though neither company is a comfortable pick right now. Both are unprofitable and asking investors to bet on technologies still finding their commercial footing.

But SoundHound has something Rigetti is still working toward: a growing base of paying enterprise customers across healthcare, automotive, and restaurant industries. Revenue grew at a strong double-digit rate in the most recent quarter, the company raised its full-year outlook, and the voice AI platform is winning new enterprise customers across multiple industries.

Rigetti has made progress on its quantum hardware, and a CHIPS Act funding letter adds a layer of government validation. But revenue remains small, and the gap between its bookings momentum and actual recognized revenue is something investors need to understand before buying in.

Both stocks are speculative and carry significant risk. But SoundHound is closer to building a durable commercial business, and for a patient investor comfortable with early-stage volatility, that gives it a modest edge right now.

Sara Appino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and SoundHound AI. The Motley Fool has a disclosure policy.