The Zacks Analyst Blog Highlights NVIDIA, Microsoft, Rigetti, IonQ and Alphabet

For Immediate ReleaseChicago, IL – January 16, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corporation NVDA, Microsoft Corporation MSFT, Rigetti Computing, Inc. RGTI, IonQ, Inc. IONQ and Alphabet Inc. GOOGL.Here are highlights from Wednesday’s Analyst Blog:The Better Quantum Computing Stock to Buy Now: RGTI or IONQ Artificial intelligence (AI) is undoubtedly a growing field, and investors always tend to think about graphic processing unit (GPU) makers like NVIDIA Corporation and AI-driven cloud behemoths such as Microsoft Corporation.However, quantum computers are the next big thing in the tech space, as they can use quantum mechanics to help with AI workloads and solve problems faster than traditional ones.As a result, some big players in the quantum computing space such as Rigetti Computing, Inc. and IonQ, Inc. saw mammoth gains in the last six months of 2024.The growing acceptance of quantum computers for pharmaceutical enhancements, derivative pricing and technological advancements is expected to drive the global quantum computing market to $5.3 billion in 2029 from the current $1.3 billion at a CAGR of 32.7%, per marketsandmarkets.Thus, with the quantum computing market poised to expand, investors may wonder whether Rigetti or IonQ is the better stock choice. Let’s see –Rigetti or IONQ: Which Company Has a Better Future?Rigetti focuses on the infrastructure side by designing cost-effective and scalable quantum processing units (QPU). Rigetti’s Novera QPU is already in high demand among commercial customers, while the company aims to manufacture a powerful 100-qubit system that can detect almost all processing errors.The Rigetti stock hit a record high in December 2024, and analysts expect its revenues to witness a CAGR of 43% to $35 million from 2023 to 2026 (read more: Is Under $10 RGTI Stock the Next 2025 NVIDIA, and Is It a Buy?).Similarly, IonQ’s stock also touched an all-time high last month, and its revenues are expected to experience a CAGR of 89% to reach $148 million in the same period. This is because IonQ is working on trapped ion tech to possibly reduce the size of a QPU from feet to inches, which could lead to more powerful quantum computers in the long run.IonQ is also positioned to grow on the back of new AI partnerships and new government contracts. Thus, both quantum computing stocks exhibit growth potential.How to Trade Quantum Computing Stocks – Rigetti & IONQInitially, buying Rigetti and IonQ stock may appear to be a good move. However, investors should be cautious about their lofty valuations as Rigetti trades at approximately 123X projected 2026 sales, while IonQ is at about 59X its estimated 2026 sales.Moreover, quantum computing is a nascent capital-intensive business, and both Rigetti and IonQ may face the risk of running out of cash in handling operational hazards. Even though the quantum computing market is growing, it may take years for major players in this field to generate profit.As rightly said by NVIDIA CEO Jensen Huang, a minimum of 15 years will take for quantum computers to be commercialized and that may lead to losses for quantum computing stocks. In the future, Google-parent Alphabet Inc. is more likely to win the quantum computing race due to its vast resources.Hence, investors should adopt a wait-and-watch approach before investing in Rigetti and IonQ stocks. Currently, both stocks have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report IonQ, Inc. (IONQ): Free Stock Analysis Report Rigetti Computing, Inc. (RGTI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks