Top Analyst Selects the Top Quantum Computing Stock to Buy

Quantum computing may sound like science fiction, but it’s here today, and it represents the shiny new thing in high performance computing. Where classical computers make use of binary bytes to store data, quantum computers use the inherent superposition of subatomic states to create q-bits, bytes that are simultaneously on and off, 1 or 0. The result: a computing system that is naturally faster and higher performing.

That additional capability, however, comes with meaningful trade-offs. Quantum hardware is significantly more complex and costly to manufacture than conventional semiconductor chips. Many systems must also operate at extremely low temperatures, requiring specialized cryogenic infrastructure that adds to overall expense and operational complexity.

Despite these hurdles, interest in the technology continues to build. Quantum computing is being explored for applications in artificial intelligence, optimization, materials science, and cloud-based services. According to Precedence Research, the global quantum computing market reached $1.44 billion last year and is projected to expand to $19.44 billion by 2035, implying an approximate 30% compound annual growth rate. North America accounted for roughly 61% of the market.

TD Cowen analyst Krish Sankar, ranked by TipRanks among the top 1% of Wall Street analysts, has been closely tracking developments in the sector. After examining two of the leading public players, Rigetti Computing (NASDAQ:RGTI) and D-Wave (NYSE:QBTS), the analyst has identified one as his preferred quantum computing stock at this stage of the industry’s development. Let’s take a closer look.

Rigetti Computing

We’ll start in Berkeley, California, where Rigetti Computing has been bringing quantum computers from the drawing board to the real world since 2013. The company has its hands in all the main aspects of quantum computing systems, and designs, builds, and markets superconducting quantum integrated circuits and processor chips as well as the supercooled dilution systems which those products need to reach a functional quantum state.

Rigetti currently has several commercially available quantum computers, and prides itself on offering flexibility to draw in customers. The company’s flagship system is Ankaa-3, which uses a non-modular chip, and it also offers a smaller quantum computer, Novera, a 9-qubit QPU, designed to operate as a stand-alone unit or linked in tandem. Novera allows customers to set up a boosted quantum computer that can be expanded as needs grow and that provides more power than a single small unit.

The latest system from Rigetti, the modular Cepheus-1-108Q, is slated for commercial release by the end of 1Q26. The Cepheus system is based on twelve of the company’s 9-qubit chiplets, and was created to leverage Rigetti’s modular architecture to maximum advantage.

Last month, Rigetti announced receipt of a new order from India to deliver a 108-qubit quantum computer to that country’s Centre for Development of Advanced Computing (C-DAC). This is the premier R&D organization within the Indian government’s electronics and information tech ministry, and is scheduled to be installed on-site in Bengaluru during the second half of this year. The order is worth $8.4 million.

We should note that Rigetti’s stock has been falling in recent months. The company faces headwinds, including high-level competition from major names such as IBM and Honeywell; lower-than-expected revenues combined with operating losses; and delays to the 108-qubit Cepheus system.

This was visible in the last reported quarter, 3Q25. In that period, the company’s $1.9 million top line was down 19% from the prior year and missed the forecast by ~$223,000. At the bottom line, the operating loss for the quarter came to $20.5 million. The non-GAAP net loss of $10.7 million translated to a net loss per share of 3 cents.

Top analyst Sankar takes a measured view of the company’s prospects. The 5-star analyst writes, “We see balanced risk/reward given premium valuation while it has lagged peers in revenue growth and scaling/fidelity rate metrics. Key risks to the story include cash burn and the possible need to raise capital in 1-2 years, a highly competitive market vs large tech companies (e.g., IBM, Google, Honeywell) and other quantum modalities such as ion traps, neutral atom, and photonics, and the scalability and fidelity rates of its own processor roadmap.”

Accordingly, Sankar puts a Hold rating on Rigetti’s stock, but has no fixed price target in mind. (To watch Sankar’s track record, click here)

Overall, this quantum computer company gets a Moderate Buy rating from the Street’s consensus, based on 7 reviews that include 5 Buys and 2 Holds. The stock is priced at $16.6, and its $38.75 average price target implies a robust 133% upside for the coming year. (See Rigetti stock forecast)

D-Wave Quantum

D-Wave, the second company we’re looking at here, is based in Palo Alto, California, where it’s been in the business of developing next-generation computing technology since 1999. The company bills itself as a ‘full-stack’ quantum computing firm, and boasts that it is able to deliver both the quantum computer hardware and the specialized software that runs on the new technology. D-Wave can deliver end-to-end quantum computing build-out solutions for a wide range of applications in science and business – and equally importantly, the company can also deliver the app development tools and the professional support services necessary to wring the highest performance from new quantum computing installations.

This company is taking a unique approach to quantum computing, based on dual platforms: D-Wave is using both annealing and gate-model quantum systems to address the complex needs of modern computation. Quantum annealing is a path designed for optimized computing; the gate-model approach is designed to operate quantum logic on superconducting circuits.

D-Wave is combining both approaches to wring the highest possible advantage from quantum computing. As the company puts it, annealing and gate-model quantum computing systems excel at finding different types of solutions – annealing quantum computing systems are better at materials simulations and some AI applications, while gate-model systems bring advantages in the fields of chemistry, molecular design, and energy storage.

All of that’s good – but new quantum computing systems are only useful if customers can use them. D-Wave has addressed this by putting Leap, a real-time quantum cloud service, into operation. Its target audience is business customers, who can directly benefit from bringing quantum computer capabilities to their workloads. D-Wave launched Leap in 2018, and through it, customers can access some of the world’s most advanced and fastest quantum computers.

In January, D-Wave made two announcements that highlight the company’s strengths. One, with Florida Atlantic University, details the school’s $20 million agreement to purchase an Advantage2 annealing quantum computer, to be installed at the school’s Boca Raton campus. The second announcement covers a $10 million enterprise Quantum Computing as a Service (QCaaS) deal with a leading Fortune 100 company.

We should note that these announcements came after the company’s 3Q25 financial release, in which D-Wave showed a 100% year-over-year gain in revenue – with the top line hitting just over $3.7 million and coming in $711K better than had been expected. D-Wave did run a net loss in the quarter and reported a non-GAAP EPS of ($0.05), based on a quarterly adjusted net loss of $18.1 million.

Sankar, in his coverage of D-Wave for Cowen, is less concerned by the net loss and more visibly impressed by the company’s ‘dual path’ approach. The 5-star analyst says of this quantum leader, “Our Buy rating is predicated on D-Wave pursuing a dual quantum modality roadmap that allows them to realize a 70% revenue CAGR from its Advantage annealing systems for optimization workloads while also developing leading superconducting gate-based QPU chips with QCI’s DRQ technology. The future commercialization of DRQ gate-based QPUs should enable D-Wave to address the 30-65% of the quantum computing TAM for applications such as AI/Machine Learning, cryptography, and simulations. Its DRQ gate tech has demonstrated 99.9%+ fidelity rates similar to competing ion trap and neutral atom focused companies but with the faster gate speeds and performance of a semiconductor device. If successful in scaling DRQ gates towards 100,000Q+ QPUs with high fidelity, we believe D-Wave could be among the first to commercialize superconducting gates.”

Sankar’s stated Buy rating stands alone; as with Rigetti above, Sankar hasn’t set a price target for this stock.

The analyst consensus here, however, is unanimously positive – QBTS shares have 13 recent ‘Buy’ ratings on record. The stock is priced at $19.38, and the $41.36 average target price suggests that the stock will gain 113% in the year ahead. (See  D-Wave stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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