Better Artificial Intelligence Stock: Rigetti Computing vs. D-Wave Quantum

Artificial intelligence (AI) is transforming the global economy, driving automation, productivity, and creativity. Quantum computers may hold the key to unlocking the next generation of AI technology to tackle highly complex challenges and analyze massive datasets far beyond the reach of classical computers.

Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum (NYSE: QBTS) are two emerging leaders in the field, well-positioned to capitalize on a significant market opportunity. Shares of both companies have soared, and there are plenty of reasons to believe the rally can keep going.

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Let's explore which one of these quantum computing AI stocks is the better choice for your portfolio right now.

Image source: Getty Images.

The case for Rigetti Computing

Quantum computers harness qubits, the fundamental units of information, which exploit quantum physics principles, like superposition and entanglement, to exist in multiple states simultaneously. This enables quantum computers to process calculations in parallel, far surpassing the capabilities of traditional binary-based computers.

While the technology is still being refined due to the enduring trade-off between qubit power and system stability, Rigetti Computing's superconducting gate-based technology is delivering an expanding number of real-world use cases.

The company's 84-qubit Ankaa-3 system, launched in first-quarter 2025, marks an industry milestone that could transform machine learning, optimization, simulations, cryptography, and AI. Optimism has powered Rigetti's stock to a spectacular 937% return over the past year as of this writing.

An advantage to Rigetti's approach is its modular design, with the flexibility to combine multiple quantum processing units (QPUs) to scale performance. Compared to D-Wave Quantum, which specializes in a separate quantum annealing approach to leverage qubits, Rigetti's gate-based superconducting architecture may be more versatile and future-proof, particularly for AI applications.

Despite recurring financial losses and limited sales with first-quarter revenue of just $1.5 million for the period ended March 31, the Ankaa-3 system is expected to capture a wave of demand going forward. Wall Street estimates project Rigetti's revenue to accelerate from $8.8 million in 2025 to $23 million in 2026. Industry forecasts estimate that the quantum computing market could grow to $90 billion to $170 billion by 2040, highlighting a significant growth runway for Rigetti.

Investors with a long-term perspective who believe Rigetti Computing is just getting started and that its quantum technology will prove superior may find the stock a compelling option to buy and hold.

The case for D-Wave Quantum

As promising as Rigetti's potential may be, D-Wave Quantum has a commercial lead, generating stronger growth. In the company's first quarter (for the period ended March 31), revenue reached $15 million, climbing by 509% year over year. This was driven by the delivery of its first "Advantage" quantum computer system to a high-performance computing (HPC) center in Europe, intended to facilitate breakthroughs in AI and quantum optimization applications.

D-Wave Quantum is also benefiting from the availability of its systems on cloud-computing platforms through quantum computing as-a-service (QCaaS). D-Wave has 133 customers, including Mastercard, Accenture, and Lockheed Martin, using its quantum systems.

These tailwinds have carried the stock to a whopping 1,184% return over the past year, making D-Wave one of the hottest stocks on Wall Street.

Yet, the explosive stock price gains mean that D-Wave Quantum now trades at an eye-watering 173 times revenue as a price-to-sales (P/S) ratio, suggesting investors are paying an extreme premium for the company's expected growth far out into the future, which is far from certain. For comparison, mega-cap AI leader Nvidia looks like a bargain at a P/S ratio of just 25.5. Yet, if there is a silver lining, D-Wave Quantum stock is still less expensive on a relative basis than shares of Rigetti Computing, which is trading at a P/S ratio of 289.

Investors convinced that D-Wave Quantum represents the future of computing and artificial intelligence could justify its pricey valuation, with an expectation that its shares have more upside in the long run.

QBTS PS Ratio data by YCharts.

Decision time: Not worth chasing

D-Wave Quantum's growth momentum makes it my pick as the better AI stock over Rigetti Computing. However, its high valuation renders it a highly speculative investment at current prices. Given uncertainties around its path to profitability in a competitive industry, expect continued volatility. I'd wait for a price correction before buying.

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Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc, Mastercard, and Nvidia. The Motley Fool has a disclosure policy.