IonQ and Rigetti: A Look at Competing Approaches in Quantum Computing
Investors are closely watching IonQ and Rigetti Computing as the two companies pursue distinct strategies in the rapidly developing field of quantum computing, a technology poised to revolutionize industries from medicine to finance.
Rigetti Computing utilizes superconducting quantum computing, a method involving cooling particles to absolute zero for calculations, while IonQ employs a trapped ion approach that can operate at room temperature. IonQ currently demonstrates higher accuracy, boasting a two-qubit gate fidelity of 99.97% compared to Rigetti’s 99.5%, a difference experts say is significant despite appearing small. This accuracy is crucial for commercially viable quantum computers.
However, Rigetti’s superconducting method offers faster processing speeds. The ultimate success of either approach hinges on whether the market prioritizes accuracy or speed, a question that remains unanswered. Some analysts suggest a diversified investment strategy, such as purchasing shares in both companies or a quantum computing exchange-traded fund (ETF), to mitigate risk in this speculative sector. You can learn more about ETFs at Investopedia.
Given the uncertainty surrounding the future of quantum computing, with both companies targeting relevance by 2030, experts recommend a balanced portfolio. This approach acknowledges the potential for substantial returns from a winning technology while protecting against complete loss if one company falters. For further information on the potential of quantum computing, see Quantum.gov.
Industry observers anticipate continued development and competition between these technologies, with the eventual winner likely to reshape the technological landscape.
Quantum computing investing is an incredibly speculative space, but if you pick the right company, you could be rewarded with incredible results. On the flip side, if you pick the wrong stock, the investment could go to zero.
There are also two types of companies in this realm: Pure-plays and legacy big tech. Legacy big tech includes companies like Alphabet and IBM that are getting into the quantum computing race, and have businesses to fall back on if their quantum computing endeavors don’t pan out. These are much safer investments, but don’t have near the upside potential as investing in pure-plays like IonQ (NYSE: IONQ) or Rigetti Computing (NASDAQ: RGTI).
Both of these are popular pure-play quantum computing stock picks, but does one offer a more compelling investing case than the other? Let’s find out.
Rigetti Computing and IonQ are taking two different approaches to quantum computing.
Rigetti Computing is using superconducting quantum computing, which is the approach that many companies are taking, including most of the legacy tech businesses. This technique cools a particle down to absolute zero, then uses its quantum mechanics for calculations. Cooling a particle down to absolute zero isn’t cheap, so this gives IonQ an advantage.
IonQ uses a trapped ion approach, which can be done at room temperature. Furthermore, IonQ’s trapped ion approach is far more accurate, and IonQ holds world records in one-qubit and two-qubit gate fidelity tests, which measure how accurate a quantum computer is. IonQ’s two-qubit gate fidelity sits at 99.97%, while Rigetti’s system has a 99.5% two-qubit gate fidelity. While IonQ’s advantage may not sound like much, that extra 0.47% is incredibly difficult to come by and shows the inherent accuracy advantage of the trapped ion approach.
However, IonQ’s accuracy advantage isn’t without its drawbacks. Superconducting quantum computing has far better processing speeds. So, the question of which technology will become commercially relevant boils down to what the market wants.
For a quantum computer to be commercially viable, it must be accurate. This makes IonQ seem like the better buy. However, if Rigetti can reach an accuracy level that’s on par with IonQ — say, a year or two later — IonQ may not have established a strong enough foothold to hold off a competitor with superior processing speed.
