In the sector, IonQ (IONQ<\/a> -1.80%) and Rigetti Computing (RGTI<\/a> -3.29%) are among the prominent players. IonQ uses ions to power its quantum machines while Rigetti employs the traditional superconducting qubits process.<\/p>\n Both have seen impressive share price increases over the past year. IonQ stock is up over 400% through July 23 while Rigetti climbed more than 1,000% in that time. Is one a better investment in the nascent quantum computing field? Examining these businesses in more detail can help to arrive at an answer.<\/p>\n Image source: Getty Images.<\/p>\n Rigetti Computing’s tried-and-true tech<\/p>\n Rigetti uses a proven method of producing qubits. Qubits are a quantum device’s equivalent to a classical computer’s bit. But while bits represent a zero or one, the properties of quantum mechanics mean qubits can be both at the same time, enabling orders of magnitude faster processing speeds.<\/p>\n Superconducting qubits offer several advantages. They can be manufactured using existing semiconductor chip processes, and can complete calculations faster than ion-based quantum machines. Rigetti hopes to gain greater commercialization with the latest version of its quantum computer, the Ankaa-3 system, which launched at the end of 2024.<\/p>\n However, the technology isn’t cheap. Superconducting qubits require special cryogenic equipment to keep temperatures colder than outer space. This is necessary for qubits to maintain stability long enough to perform calculations before they break down.<\/p>\n As a result, the company exited the first quarter with an operating loss<\/a> of $21.6 million on sales of $1.5 million. The loss is 30% greater than the previous year while Q1 revenue plunged 52% year over year. This combination of falling revenue and rising costs is unsustainable over the long run.<\/p>\n That’s why Rigetti executed a $350 million equity offering that helped it build up a stockpile of $575 million in cash, cash equivalents, and investments with no debt as of June 11. This cash hoard should sustain the company’s operations in the short term, but it will need to produce revenue growth to build a sustainable business.<\/p>\n IonQ’s lofty ambition to remake the internet<\/p>\n IonQ’s ion-based method holds several advantages over superconducting qubits. Its tech can operate at room temperature, eschewing the need for cryogenic equipment.<\/p>\n The technology also offers low error correction rates. Because qubits quickly break down, quantum computers are prone to calculation mistakes that limit their ability to scale. IonQ’s reduced error rates make scalability a possibility.<\/p>\n Consequently, the company aims to construct a quantum computing network, reminiscent of the infrastructure that underpins today’s world wide web. It pursued several acquisitions to achieve its goal of building “the next generation of the internet,” in the words of IonQ Chairman Peter Chapman.<\/p>\n But like Rigetti, IonQ’s costs are rising. It posted a Q1 operating loss of $75.7 million, an increase from 2024’s $52.9 million, on revenue of $7.6 million. So it, too, is pursuing an equity offering to the tune of $1 billion.<\/p>\n In addition, IonQ believes it can hit revenue of $75 million to $95 million in 2025. This would be a strong increase over 2024, when sales soared 95% year over year to $43.1 million.<\/p>\n Making the choice between IonQ and Rigetti Computing stock<\/p>\n Although Rigetti’s superconducting qubits technology is well established in the quantum computing industry, IonQ’s approach is producing higher sales. On top of that, another factor to consider is share price valuation. This can be assessed using the price-to-sales<\/a> (P\/S) ratio, a metric commonly used when companies are not profitable.<\/p>\n<\/p>\n
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