Forget Rigetti Computing: This Dividend‑Paying Powerhouse Has a Much Stronger Upside

Is Rigetti Computing (NASDAQ: RGTI) banal a buy?

Crunching the numbers past month, I concluded that Rigetti banal astir apt is not a buy, astatine slightest not successful the abbreviated term, due to the fact that a deficiency of caller income announcements of quantum computing systems implies the banal astir apt missed net successful the 4th quarter.

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(We'll find retired whether I was close astir that successful conscionable a mates of weeks, erstwhile Rigetti reports its Q4 results connected March 4.)

More recently, my workfellow John Bromels highlighted different hazard for Rigetti stock, which suggests it could beryllium literal years before anyone knows if Rigetti banal is adjacent "commercially viable," overmuch little a banal valued cheaply capable that it's a buy.

As Bromels explains: "For a quantum machine to beryllium commercially viable, it's estimated to request astatine slightest 1 cardinal carnal qubits and 99.99% two-qubit gross fidelity (and astir apt person to 99.99999%)." Rigetti, meanwhile, doesn't person adjacent 1,000 qubits to its sanction (nor is it 99.9% accurate), and is astir apt astatine slightest a half-decade distant from passing "the 1 million-qubit threshold."

Translation: You astir apt won't cognize if Rigetti has a viable business, overmuch little 1 that tin vie with other, more viable businesses that are outracing Rigetti, for different 5 years.

What we bash cognize astir Rigetti is that, close now, it's losing astir $350 cardinal a year, and its losses person accrued every year for the past five years. We besides cognize that, according to analysts polled by S&P Global Market Intelligence, Rigetti isn't expected to gain immoderate nett whatsoever done astatine slightest 2030, and perchance longer -- which tallies with the full "commercially viable" thing.

When it comes to being commercially viable, Rigetti isn't yet. And it whitethorn ne'er be.

Don't get maine wrong. Rigetti's not wholly a mislaid cause. The aforesaid analysts who uncertainty Rigetti's way to profits bash admit it's not burning currency terribly fast. With astir $450 cardinal successful the bank, and lone $150 cardinal successful currency pain projected betwixt present and 2028, Rigetti has the currency it needs to stay alive... astatine slightest agelong capable for investors to fig retired if it tin go "viable."

Still, Rigetti's a spot of a gamble -- and if you inquire me, there's a safer mode to stake connected quantum computing becoming a viable technology: IBM (NYSE: IBM).