The article discusses three AI stocks—Palantir, C3.ai, and Rigetti Computing—that investors might consider selling by 2026 due to high valuations, declining financial performance, and competitive challenges, despite the overall growth in the AI sector.
The article predicts that shares of Rigetti Computing and D-Wave Quantum, which have surged dramatically since 2023, will crash in 2026 due to the bursting of the quantum computing bubble, as large-scale, fault-tolerant quantum computers are still at least a decade away and the market for quantum computing remains relatively small compared to AI.
Quantum computing stocks like IonQ, Rigetti, and D-Wave are highly volatile and currently down from their highs, offering potential high-risk, high-reward investment opportunities. While these pure-play companies have limited market size projections that may not lead to millionaire status, the broader industry, including legacy tech giants like Alphabet and IBM, could shape the future of quantum technology. Investors are advised to be patient and consider established companies for exposure rather than rushing into highly speculative stocks.
An investor favors IonQ over Rigetti Computing as the better quantum stock to buy, citing IonQ's technological advancements, strategic acquisitions, and strong partnerships, despite Rigetti's impressive growth and system sales. The overall sentiment is cautious optimism for IonQ, with some skepticism about Rigetti's valuation and revenue growth prospects.
Investing in quantum computing stocks like IonQ, Rigetti Computing, and D-Wave Quantum could present a once-in-a-lifetime opportunity due to their technological advancements, strategic partnerships, and significant market gains, making them promising long-term investments in a groundbreaking field.
Billionaire investors are heavily investing in Rigetti Computing, a quantum computing company whose stock has surged over 3,700% in the past year, signaling strong market interest in the potential of quantum technology to revolutionize fields like medicine, finance, and cryptography.
Rigetti Computing is positioned as a high-risk, high-reward investment in the quantum computing sector, with potential catalysts like the 84-qubit Ankaa 3 system in 2024 and a 336-qubit Lyra processor in the future. Collaborations with NVIDIA and Fermilab, along with potential DARPA contracts, are expected to drive growth. However, risks include unstable revenue, high R&D costs, and competition from major players like IBM. Despite a recent $17.3 million operating loss, the company's narrative supports a strong buy rating, though further stock dilution is anticipated.