By Eric McConnell

Analysts Think This Tech Stock Has A Chance To Become The Next Nvidia

Nvidia's bull run from chipmaker to member of the S&P 500 Magnificent Seven has been one of the stock market's most compelling stories of 2024. Naturally, investors and analysts are already trying to predict what stock has the potential to duplicate Nvidia's performance in 2025. Keep reading to discover why some analysts think Rigetti Computing could be the next Nvidia.

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Nvidia's rise to prominence is fueled largely by the fact that it makes GPUs, which are highly advanced chips that can process large volumes of information simultaneously. Until the advent of AI, Nvidia's GPUs were primarily featured in gaming computers, offering users tremendous performance benefits in terms of gameplay and speed. However, the same advantages that made Nvidia's chips ideal for gaming also make them great for AI.

AI depends on GPUs to function and Nvidia's dominance of the GPU market has made it the go-to company for data centers and tech companies looking to harness AI's power. AI will require even more advanced chipsets and processing to reach the next stage of its development. Currently, the technology best suited for this purpose can be found in quantum processing units (QPUs).

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QPUs can process the binary language that underpins all computing functions at geometric rates. However, most current QPUs on the market are very large and have a higher-than-acceptable error rate, which limits their usefulness in many computing applications. That's where Rigetti Computing enters the picture. This company makes a QPU that is as powerful as it is flexible in terms of potential applications.

That's because Rigetti offers a bespoke version of QPUs. Rigetti QPUs are highly customizable because the company has developed its own cloud-based platform that allows programmers to write their quantum-powered algorithms. Unlike similar quantum computing efforts underway at IBM or Google, which are proprietary, Rigetti's stand-alone hardware is available independently.

That means Rigetti clients not only have another option for their QPU needs but also can use Rigetti products to develop and advance their own quantum computing systems. More importantly, Rigetti products have shown themselves to be as powerful as they are accurate. Rigetti's Novera QPU is a consumer version of its own quantum computer that sells for $900,000.

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According to the Rigetti website, the United States Air Force Research Lab has already inked a five-year deal to buy Novera QPUs and Singapore-based Horizon Quantum Computing will also be employing the Novera QPU. Next up on the horizon for Rigetti is the Ankaa-3 system, which can handle 84 qubits of data with a 99% accuracy rate. The original Novera only handled 9 qubits, so the 84-qubit Ankaa-3 is a massive upgrade.

Rigetti hopes to be capable of producing a 100-qubit QPU by the end of the year and is on a quest to produce a 336-qubit QPU. If they can pull that off, Rigetti Computing would be at the forefront of a new age in quantum computing. That's why so many analysts are keeping a watchful eye on this company. Alliance Global Partners analyst Brian Kinstlinger recently raised his target for Rigetti from $3.50 to $5.50.

Rigetti shares have already moved from $3.50 to their current price of $4.38 and Benzinga's analysts have given Rigetti Computing a consensus "buy" rating. To be certain, Rigetti Computing has a way to go before it hits the $140 range like Nvidia but there is upside potential here. If Rigetti can continue increasing the power and accuracy of its QPUs, today's $4.38 price could look like an absolute steal by Q4 2025 and beyond.

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This article Analysts Think This Tech Stock Has A Chance To Become The Next Nvidia originally appeared on Benzinga.com