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Key Points
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Rigetti’s quantum systems could process AI tasks, but Nvidia will continue to dominate the market.
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Rigetti’s stock surged 1,460% over the past year, while Nvidia’s rose less than 50%.
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Rigetti’s market cap is $5 billion, trading at 133 times its estimated sales for 2027.
Rigetti Computing (NASDAQ: RGTI), a developer of quantum chips and systems, has seen its stock price increase significantly over the past year, driven by rising expectations for quantum computers in AI applications. In contrast, Nvidia (NASDAQ: NVDA), which holds more than 90% of the data center GPU market, is valued at around $4.2 trillion and continues to lead the AI market due to its strong product offerings and market position.
Analysts project Rigetti’s revenue will grow at a CAGR of 52%, from $10.8 million to $37.7 million between 2024 and 2027, despite the company remaining unprofitable. However, analysts warn that Rigetti’s high valuation might not be sustainable given the risks involved. Meanwhile, Nvidia is expected to experience a CAGR of 31% in revenue and 29% in earnings from fiscal 2025 to 2028, fueled by the growing AI market and advancements in its GPU technology.
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