Investing

Better Quantum Computing Stock to Buy in March: IonQ vs. Rigetti Computing

Chris MacDonald

Published: March 10, 2025 4:02 pm

Most of the water cooler discussion these days among investors discussing the highest-flying stocks continues to be around artificial intelligence stocks, or companies leveraging such technology for growth. With the way the winds are blowing, and the free pass the market is providing to companies looking to invest heavily in this space, it’s clear that we’re going to see a ton of investment pour into the most powerful computing solutions in the years to come. 

However, another adjacent space I think is worth considering right now is the world of quantum computing. Both IonQ (NASDAQ:IONQ) and Rigetti Computing (NASDAQ:RGTI) are leaders in this space, working to legitimize and cement a new industry altogether. Quantum computing technology does have plenty of potential AI capabilities as well, and both companies are looking to push the boundaries of what’s currently possible by producing high-fidelity qubits and scalable quantum architectures. If they can do so, the sky is the limit in terms of growth, since these quantum computers have the potential to do exponentially more work than our existing computers allow.

Let’s dive into what these companies each offer, and which may be the better buy right now. 

Key Points About This Article:

• The quantum computing sector is one that’s been very volatile of late, though plenty of long-term investors remain committed to holding the best-quality names in this space.
• IonQ and Rigetti Computing are among the two top players in this sector. Let’s dive into what makes each unique, and which is the better buy right now. 
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

IonQ (IONQ)

IonQ is among the most advanced quantum computing companies in the market, and is currently selling hardware and cloud access to large clients such as Amazon, Microsoft, and Google. Using trapped qubits and lasers, IonQ’s system processed 68 billion scenarios simultaneously with fewer errors. These initial tests do point in the right direction in terms of providing the sort of scalable computing power so many companies are after.

But despite the company’s Executive Chair Peter Chapman revising the company’s forecast in January (in a bullish manner, of course), the market has seen fit to continue to revalue shares of the quantum computing company lower, adjusting the company’s multiple downward to reflect a much more bearish macro backdrop.

Perhaps some of this recent move is warranted. After all, IonQ still trades at more than 100-times sales, which means there’s a significant amount of future growth already priced in at current levels. But with the stock now down more than 60% from its 52-week high, investors have to ask the question if now is a good entry point.

It’s certainly a better entry point today than during the post-election rally we saw drive many high-growth companies to recent highs. I think investors will continue to look for positives in the company’s upcoming earnings reports and earnings calls around revenue growth (most market participants are expecting to see triple-digit growth for the foreseeable future) and a narrowing of IonQ’s losses over time. 

With its recent $220 million loss last year, IonQ’s cash reserves fell to $363.8 million, so investors will have to look for funding announcements, if IonQ isn’t able to rein in its operational efficiency metrics over the coming year. 

That said, IonQ remains focused on long-term profitability, targeting $1 billion in sales by 2030. So, the outlook for IonQ stock really depends on an individual investor’s time horizon, in my view. 

Rigetti Computing 

Rigetti Computing is another company at the forefront of the quantum computing revolution, envisioning a future in which the company’s powerful quantum computers take over from the existing high-performance computing infrastructure of today.

Rigetti is noted for developing the first multi-chip quantum processor, and the company began selling systems in 2023. Despite minimal revenue (smaller than that of IonQ) of only $2.4 million in Q3 with a $17.3 million loss, Rigetti is planning on releasing a 100+ qubit system by 2025. Notably, the company owns its own fab which has increased costs up-front, but this move is one that’s provided significant production control. In this stage of development, one could argue that those are necessary expenses.

Moving forward, the fundamental picture for Rigetti is much the same as it is for IonQ. Investors will want to see very significant top-line growth, and improved losses over time. As the company scales, that’s certainly the expectation, though the timeline for the company to approach profitability remains unclear. 

Some analysts have pointed out that Rigetti, IonQ, and others in this space are likely to take a number of years to see profitability, so many investors will likely simply want to see the company operating as efficiently as possible. That said, Rigetti’s underlying current ratio of 4.8 and its cash position of $92 million should fund operations for some time, with little chance of an equity infusion needed in the near-term. 

I think Rigetti’s valuation (even more extreme than IonQ) at 160-times sales is likely a derivative of the company’s smaller size. That said, that’s an enormous valuation for any company, and it’s one that investors are clearly not looking to step into, even with so much attention swirling around this sector right now. 

The Verdict: IonQ Is a Better Buy

Both IonQ and Rigetti are early-stage companies in a sector with a very uncertain outlook. Of course, I think valuation matters a great deal in this market, and now more specifically. Investors are clearly backing away from companies that can be largely viewed as overvalued relative to their growth prospects, with many choosing to take a more defensive approach to the market as recession risks pick up. 

That said, I also think the quantum computing sector is one that should drive incredible long-term growth. And similar to companies like Nvidia that were unprofitable for a long time before finally breaking through and delivering incredible cash flow growth, it’s possible that this is the next Industrial Revolution we should be paying attention to. If that’s the case, perhaps these companies will appear cheap in hindsight. 

The thing is, factoring in these two companies respective valuations, I’m going to have to side with IonQ for its (relatively) lower multiple and larger size. I think size will matter more as this sector grows, and I do think IonQ’s near-term growth outlook is likely more robust than Rigetti, at least for now. For this reason, IonQ remains my top pick in this space for the time being.