Nvidia looks like a more reliable investment than this quantum computing darling.
Rigetti Computing (RGTI) 7.55%)) Since its release three years ago, it has taken investors to Wild Ride. Quantum Computing Company was made public by merging with a Special Purpose Acquisition Company (SPAC), with its shares opened for $9.75.
However, by May 3, 2023, the stock had sank to a record low of $0.38. Like many other Spack-backed startups, Ligetti is not over-employed. The original forecast generated only $13 million in revenue in 2022 compared to the initial forecast of $18 million, with that December founder Chad Rigetti unexpectedly resigning.
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However, at the time of this writing, Rigetti stock has returned to about $9. The $50,000 investment in record lows is worth $1 million today. The Bulls have rushed back as they deployed new chips and systems, attracted more customers as a “one-stop shop” of Quantum chips, systems and cloud services, and set a clearer roadmap for the future.
Over the past few months, Rigetti launched the Novera QPU, a 9-squish commercial version of a quantum computer that costs around $900,000, and deployed its first 84-squish ANKAA-3 quantum computing system. It also revealed plans to launch a modular 36 Qubit system this year, a non-modular 100 qubit system in 2026, and a 336 qubit system in the coming years. Meanwhile, the market’s renewed interest in quantum computing inventory has driven the bear away and once again lifted Ligetti’s stock.
If everything is right, analysts expect Rigutti’s revenue to rise to 30% in 2025, 140% in 2026 and $50 million in 2027.
That nosebleed rating limits its likelihood of rising and may set it for a sudden decline in market slump. So instead of chasing Ligetti on these hilarious levels, investors should consider tech stocks from another billionaire manufacturer that are still trading at a more reasonable valuation: AI chip leader Nvidia (NVDA) 3.16%)).
Why was it time to revisit nvidia?
If you invested $50,000 in Nvidia 10 years ago, your investment is worth more than $10 million today. Chipmakers have acquired billionaires of investors by expanding their market-leading gaming GPU business and deploying AI-oriented data center GPUs long before other chipmakers paid attention to the emerging market.
Unlike CPUs that process individual data via scalar processing, GPUs simultaneously crunch a wide range of integers and floating point numbers via vector processing. As a result, Nvidia’s high-end data center GPUs can handle complex machine learning and AI tasks more effectively than standalone CPUs.
Nvidia currently has roughly synonyms in the data center GPU market, with all of the world’s top AI companies loaded into chips, including Microsoft, Amazon, the Meta platform and Openai. As a result, revenues have more than doubled in both 2024 and 2025 fiscal year (ends in January this year). From 2025 to 2028, analysts expect that revenue and EPS will increase at a combined annual growth rate (CAGR) of 31%.
These are the surprising growth rates for stocks trading at 27x revenues next year. Nvidia’s stock has been pulled back 10% over the past three months amid concerns over tougher export curbs, higher tariffs and other macro headwinds against China, but it should remain the top seller of AI Gold Rush picks and shovels.
Regarding potential competition with quantum computing systems, Nvidia CEO Jensen Huang predicts that “very useful quantum computers” (which will require 1 million Qubits more than today’s systems) could take another 15-30 years. So, as the AI market expands and evolves, Nvidia may still have plenty of room to run. Its large size could prevent it from securing more billionaires from modest investments over the next decade, but it certainly looks more like a more reliable investment than Ligetti.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. Leo Sun has positions on the Amazon and Meta platforms. Motley Fool has been working and recommending Amazon, Meta Platforms, Microsoft and Nvidia. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.
