An Explosive 500% Rally Has Everyone Talking  But Is This Really the New AI Giant in the Making? Over the past six months, Rigetti Computing has shocked the market with a massive 521% surge in its stock price. That kind of growth naturally draws comparisons to Nvidia, the tech titan that became the poster child of the AI revolution. But is Rigetti really on track to become the next Nvidia, or is this just another hype-driven ride with no solid ground?

Let’s rewind for a moment. If you had bought Nvidia shares on November 30, 2022, the day OpenAI launched ChatGPT, your investment would have grown nearly eightfold by today. That date marked the beginning of the AI explosion  and investors were quick to pour money into anything even remotely linked to artificial intelligence. Now, the spotlight is shifting. Rather than just betting on general AI trends, investors are zeroing in on specific sectors and quantum computing is emerging as the next frontier. That’s where Rigetti Computing (RGTI 2.56%) enters the scene.

Quantum Computing Joins the AI Conversation

Quantum computing sounds futuristic and that’s because it still is. Most of its real-world applications haven’t gone mainstream yet. Still, the buzz is undeniable. Rigetti, alongside peers like IonQ and D-Wave Quantum, has taken center stage in this next phase of tech innovation. The numbers fueling this excitement are huge. Analysts project the quantum computing market could hit $131 billion in the next 15 years. That’s enough to make any investor’s eyes light up. But just because the market potential is big doesn’t mean profits are around the corner.

Rigetti’s Financial Reality Is Tough

Let’s talk about hard facts. Despite the excitement, Rigetti only pulled in $10.8 million in annual revenue. On the flip side, it burned through nearly $200 million. That’s a massive gap. A company making so little while spending so much can’t be considered financially stable at least not yet. Still, investors have pushed its market cap to $3 billion. Is that justified? It’s hard to argue in favor of it when there’s no clear path to profitability.

Nvidia vs. Rigetti: What’s the Difference?

It’s tempting to think so. Nvidia soared because its GPUs were already in high demand not just for gaming, but for cloud computing, data centers, and more. The AI boom only added fuel to a fire that was already burning. With Rigetti, it’s different. The company doesn’t yet have a proven, widely-used product. Its technology is exciting, yes but unproven and speculative. In short, Nvidia had a product-market fit; Rigetti had a dream.

What’s Really Driving Rigetti’s Stock Surge?

Let’s be honest, a 500% gain in six months often has more to do with momentum trading than solid fundamentals. It’s a classic case of meme-stock behavior: high hype, low certainty. Meanwhile, the true leaders in AI, like Nvidia, Microsoft, Alphabet and Amazon, are already laying down serious roots in the quantum space. That makes it even harder for smaller players like Rigetti to keep up. Given these challenges, it’s likely that Rigetti’s stock will normalize or even correct significantly in the coming years.

Should You Invest in Rigetti?

From where we stand it’s a no. Rigetti is exciting, yes. But it’s also high-risk, speculative, and far from being a proven leader in the field. Unlike Nvidia, which played a transformative role in the AI surge, Rigetti still has a long way to go before it becomes a true pioneer.

One More Thing Rigetti Isn’t Even the Top Play in the $1.5 Trillion Tech Shift

While Rigetti might catch headlines, the real opportunity might lie elsewhere. The Motley Fool analysts are watching a $1.5 trillion boom in AI, infrastructure, and advanced manufacturing, driven in part by a temporary U.S. tariff pause that could end soon. And the stock they’re excited about? It’s 1/100th the size of Nvidia, yet it powers tech for Apple, OpenAI, and others. A full report on this under-the-radar company is now available to Stock Advisor members. Rigetti’s run has been explosive. But long-term investing isn’t about chasing the biggest headlines, it’s about spotting the companies with real potential, real products, and real profits. Right now, Rigetti doesn’t check those boxes. It’s a thrill ride but not one we’d recommend getting on.