Bernstein analysts are betting on quantum computing as the next major technological frontier. They highlight Rigetti Computing (RGTI) and Infleqtion (INFQ) as two companies with substantial upside potential, noting their current valuations may not fully reflect their future market prospects.
Rigetti is advancing superconducting chiplet technology, while Infleqtion leverages neutral atom technology and has a strategic partnership with Nvidia. Both companies have shown strong recent stock performance and are poised to benefit from the evolving quantum computing landscape.
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Bernstein analysts believe the future of advanced computing will be shaped by a tri-processor architecture, integrating CPUs, GPUs, and Quantum Processing Units (QPUs). While the quantum computing landscape is still nascent, with a mix of specialized firms and tech giants like IBM, Google, Microsoft, and Intel involved, Bernstein identifies two stocks with significant upside potential: Rigetti Computing (RGTI) and Infleqtion (INFQ).
In a recent note, the research firm suggested that quantum computing will not replace traditional hardware but will act as a specialized accelerator. The market is unlikely to be a winner-take-all scenario, as different quantum modalities offer distinct strengths suited for various use cases. Bernstein highlights that current valuations for Rigetti and Infleqtion imply relatively small long-term market shares, presenting a favorable risk-reward ratio for investors.
Rigetti Computing is noted for its superconducting chiplet technology. Analysts at Mizuho reiterated an 'outperform' rating, pointing to Rigetti's strong cash position and recent sale of a 9-qubit Novera QPU, which could signal near-term optimism as the company scales to 1,000 qubits. Rigetti's shares have already seen a substantial increase of 93% over the past year.
Infleqtion, specializing in neutral atom technology, is also garnering attention. Analysts at Citigroup and BTIG initiated coverage with 'buy' ratings, setting price targets that suggest significant upside. Infleqtion's ability to generate revenue through quantum sensing and its partnership with Nvidia, integrating its Sqale quantum computer with Nvidia's AI supercomputers, are seen as key validations of its technology. Infleqtion is up 39% in the past three months since going public last July.
