B. Riley Securities, led by five-star analyst Craig Ellis, reaffirmed its Buy ratings on Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) while raising their price targets despite concerns about quantum computing’s commercialization timeline. Shares of Rigetti and D-Wave Quantum jumped 19% and 9%, respectively, at the time of writing as they rebound after Nvidia’s (NVDA) CEO suggested “very useful” quantum computers may be over a decade away.
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Ellis believes recent advancements in quantum technology—though underappreciated—are promising and could expand high-value workloads that classical computing can’t handle. He also noted that capital raises in late 2024 increased the amount of cash on hand at these companies, which eased concerns about liquidity that had weighed on share prices over the past two years.
As a result, B. Riley increased D-Wave Quantum’s price target to $9 from $4.50 and Rigetti’s to $8.50 from $4, and view them as leaders in commercial and government quantum adoption. Although Ellis acknowledged concerns over technical challenges and high valuations, he pointed to progress in quantum systems, commercial interest, and national security developments as potential catalysts for growth. This suggests that investor interest in new technologies beyond AI is building.
What Is the Best Quantum Computing Stock?
Overall, out of the two stocks mentioned above, analysts think that QBTS stock has more room to run than RGTI. In fact, QBTS’ average price target of $5.44 per share implies almost 29% upside versus RGTI’s 17.12% downside risk.
