In a recent note, Bernstein emphasized the transformative potential of quantum computing, predicting it will serve as a specialized accelerator rather than a replacement for traditional computing hardware. Analysts, led by Mark Newman, foresee a future dominated by a tri-processor architecture that includes CPUs, GPUs, and QPUs.
They caution that it is premature to identify definitive winners in the quantum computing space, noting the presence of both specialized firms and major tech players like IBM and Google. Newman pointed out that the market is unlikely to favor a single dominant player, as different technologies will excel in various applications.
Bernstein specifically identified Rigetti Computing (RGTI) and Infleqtion (INFQ) as having favorable risk-reward profiles, with current valuations suggesting limited market share potential of about 4% and 2%, respectively. This implies that if either company captures a larger market share, the upside could be substantial.
Rigetti has been recognized for its advancements in superconducting technology and has a strong cash position of approximately $590 million. Analysts from Mizuho have set a price target of $33 for Rigetti, indicating a potential 60% increase from its recent price. Infleqtion has garnered positive attention from Citigroup and BTIG, with price targets suggesting 37% to 51% upside.
The partnership with Nvidia is seen as a significant endorsement of Infleqtion's technology, positioning it well for future growth in both AI and quantum applications. Over the past year, Rigetti's shares have surged by 93%, while Infleqtion has increased by 39% since going public last July