Rigetti vs IonQ: Why RGTI Is Losing the Quantum Race

Quantum computing stocks have had a rough 2026, and Rigetti Computing (RGTI) is no exception. The stock is down about 50% this year and roughly 80% from its all-time high set last year. The market has turned risk-averse, punishing early-stage, cash-burning companies like Rigetti.

Rigetti is a pure-play quantum computing company developing a full-stack superconducting quantum system. It recently won a $100 million government contract under the CHIPS Act to work with the U.S. Department of Defense, which will help fund operations for a while. However, the company still relies on outside funding to continue innovating.

The core problem is accuracy. Rigetti's 108-qubit system has a two-qubit gate fidelity of 99.1%, meaning about nine errors per 1,000 calculations. In contrast, competitor IonQ (IONQ) uses trapped-ion technology and expects to launch a 256-qubit computer in 2027 with 99.99% accuracy—just one error per 10,000 calculations.

That performance gap is stark. IonQ's revenue in the second quarter was $80 million, versus Rigetti's $5 million. This tells investors that clients are choosing IonQ's technology over Rigetti's, and Rigetti is falling behind its peers.

In quantum computing, accuracy and qubit count are critical. Higher accuracy means fewer errors, which is essential for practical applications. IonQ's superior accuracy and larger qubit count give it a significant competitive advantage. As early-stage clients test quantum systems, they are more likely to choose the more reliable platform, which is IonQ.

The revenue disparity reflects this: IonQ's $80 million quarterly revenue dwarfs Rigetti's $5 million. This suggests IonQ is winning commercial contracts and gaining market share. For Rigetti, closing this gap will require significant technical improvements and likely more capital.

While Rigetti's superconducting approach offers speed advantages, the market seems to prioritize accuracy. IonQ's trapped-ion technology is focused on accuracy, and that appears to be what customers value. Unless Rigetti can rapidly improve its fidelity, it risks being left behind.

For investors, the quantum computing theme is still early-stage and volatile. The time to buy may be when hype fades, but not all quantum stocks are equal. Rigetti's weak fundamentals make it a less attractive bet compared to IonQ, which has better technology and revenue traction.