The firm sees both companies as attractive opportunities, supported by government funding, partnerships and expanding commercial progress.
- Bernstein believes quantum computing could become a key part of future computing systems.
- Analyst Mark Newman said quantum processors will work alongside CPUs and GPUs.
- The firm said different quantum technologies are likely to succeed in different applications rather than producing a single winner.
Rigetti Computing (RGTI) and Infleqtion (INFQ) stocks traded over 2% higher overnight after Bernstein analyst Mark Newman expressed optimism in both companies’ growth potential.
Bernstein Vouches For A ‘Quantum’ Future
As investors search for the next major computing breakthrough, analysts at Bernstein argue that quantum technology could become a critical part of future computing infrastructure.
According to a CNBC report, Bernstein believes that while the quantum sector remains in its early stages and identifying long-term leaders remains difficult, a pair of companies currently offer particularly compelling opportunities.
Bernstein analyst Mark Newman and his team said quantum processors are expected to complement, rather than replace, conventional computing hardware.
“Quantum computing is set to become the next important step in computing. We believe the future of advanced computing will be shaped by a tri-processor architecture composed of CPUs, GPUs, and QPUs,” said Newman.
The report noted that the emerging market includes both specialized quantum companies and large technology firms such as International Business Machines (IBM), Alphabet (GOOGL), Microsoft (MSFT) and Intel (INTC).
Bernstein cautioned that the industry is unlikely to produce a single dominant winner because different quantum approaches may prove better suited for different applications.
Why RGTI And INFQ Stand Out
Bernstein highlighted Rigetti and Infleqtion as having attractive risk-reward profiles. According to the analysts, current market valuations appear to assume only modest long-term market penetration for both companies.
That leaves room for appreciation if either captures a larger share of the expanding quantum computing market.
Rigetti secured a non-binding agreement last month that could provide as much as $100 million in funding through the CHIPS Act program to support domestic research initiatives. Around the same time, its flagship 108-qubit quantum processor became broadly available through Amazon’s cloud-based quantum services platform.
Rigetti stock traded over 1% higher overnight, heading into Tuesday. However, on Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory.
Infleqtion’s momentum also picked up after the $100 million CHIPS Act-related funding from the U.S. Department of Commerce. Shortly afterward, the company expanded its international footprint by opening a quantum research and manufacturing center in Oxford, England, strengthening its position within the U.K.’s growing quantum ecosystem.
The company has also worked with Nvidia on integrating quantum technologies with advanced computing systems. Supporters view the tie-up as an important validation of Infleqtion’s technology roadmap.
Infleqtion stock traded over 2% higher overnight, ahead of Wednesday.
So far this year, RGTI and INFQ stocks have declined over 1% and 5% respectively.
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