Forget Rigetti Computing: This Quantum Computing Stock Is a Much Better Buy Right Now

Rigetti Computing (NASDAQ: RGTI) has emerged as a hot pure play in the quantum computing space, and buy-and-hold investors have scored incredible wins with the stock. Over the last year alone, the company's share price is up roughly 300%. Over the last three years, the stock is up approximately 2,540%.

Rigetti Computing has been reporting some significant technological progress for its quantum computing stack, and the company has also inked big partnerships with the U.S. Air Force and other important tech and defense players. While Rigetti could wind up delivering strong results for investors with high risk tolerance, I think there's a better quantum computing pure-play to invest in right now.

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D-Wave Quantum stock looks like a better buy than Rigetti right now

D-Wave Quantum (NYSE: QBTS) and Rigetti Computing are taking two different approaches to quantum computing. While D-Wave's quantum-annealing approach seemingly has better near-term commercialization opportunities, Rigetti's quantum tech could have better long-term payoffs but is even more speculative. The differences in approach are reflected in the two companies' recent business performance.

In the third quarter, Rigetti's revenue declined 18% year over year to come in at approximately $1.95 million. Meanwhile, sales across the first nine months of this year came in at $5.22 -- down from $8.52 million across last year's stretch. For comparison, D-Wave posted sales of $3.7 million in the third quarter and revenue of $15.3 million across this year's first nine months -- representing growth of 100% and 235%, respectively.

Despite some significant performance breakthroughs, quantum-computing tech still exists in a relatively nascent state. Along those lines, it's reasonable to expect that sales growth for players in the space will be somewhat uneven.

Given that Rigetti's growth trajectory hinges on delivering wins in less developed and proven quantum tech, it's not surprising to see its growth lagging behind D-Wave's. Rigetti has continued to forge promising partnerships, and its recent sales declines provide little insight into what its growth will look like over the next five or 10 years.

On the other hand, I think that D-Wave's recent sales gains actually do provide some meaningful indicators for what its growth trajectory might look like. The company's focus on quantum-annealing tech is powering a much more rapid commercialization ramp, and that will likely continue to be the case for the foreseeable future.

Rigetti could wind up delivering tech breakthroughs that power incredible sales and earnings expansions, but the outlook here is highly speculative. For investors who are willing to take on the outsized risks that come with investing in pure-play companies in the early stages of potentially explosive tech trends, I think that D-Wave Quantum looks like a better buy.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.