QUBT vs RGTI: Which Quantum Computing track is more worth entering a position?

Quantum Computing is booming, and two listed companies are competing for the opportunity. However, there are significant differences in their technological routes, and their financial situations are not ideal. Who should retail investors choose?

Two Different Roads

Quantum Computing Company (NASDAQ: QUBT) is taking the photonic route—using photons to store and process data. It sounds very high-tech, and it has a key advantage: it can operate at room temperature.

Rigetti (NASDAQ: RGTI) has chosen the superconducting route - which requires cooling the equipment to near absolute zero (minus 459 degrees Fahrenheit), consuming a lot of energy, but currently has stronger computing power.

What’s even more heart-wrenching is that although QUBT's photonic scheme has advantages in network communication, it suffers from poor control precision and high error rates. Rigetti's scheme, while more expensive, addresses more complex problems and has already integrated with Nvidia's NVQLink platform, allowing for a hybrid setup with AI supercomputers.

Whose business is more reliable?

You can understand it by looking at the financial data:

• QUBT Q3 Revenue: $384,000 (less than $1 million in a year)
• Rigetti Q3 Revenue: $1.9 million (5 times difference)

More importantly, Rigetti has already secured signed orders - in September, it obtained two procurement contracts totaling $5.7 million, expected to deliver the Novera Quantum Computing system in 2026.

But both of these are money-burning machines: QUBT's operating costs are $10.5 million, doubling compared to the previous period; Rigetti lost $20.5 million. Both companies are barely holding on through equity financing (QUBT raised $750 million, Rigetti raised $350 million).

Valuation is obviously hanging

Using the price-to-sales (P/S) ratio, QUBT's valuation is absurdly overvalued—although it has recently corrected, it is still much higher than Rigetti. The problem is clear: QUBT's photonic scheme is attractive, but customer acceptance is extremely low. Rigetti, although its technology is not as disruptive, actually has people willing to pay.

How to choose?

To be honest, both companies are burning cash in their early stages, and neither is stable. However, relatively speaking, Rigetti's valuation is more reasonable, its orders are more realistic, and its revenue is more reliable. Although QUBT may have a more advanced technological direction, it is still far from commercialization.

Risk Warning: Quantum Computing is a high-risk sector, and neither of these companies shows any signs of profitability at the moment. If your risk tolerance is not sufficient, it's best to avoid such stocks.