Bernstein Names Rigetti and Infleqtion: Two Undervalued High-Potential Quantum Computing Stocks
Alina Collins
In a 28-page report, Bernstein flagged Rigetti (RGTI) and Infleqtion (INFQ) as the two best risk-reward plays in quantum computing, arguing that the market prices in far less market share than their technology positions warrant — leaving outsized upside if either captures a meaningful slice.
Why does Bernstein call the market "too conservative"?
Bernstein's framework shows RGTI's valuation implies only about 4% long-term market share; INFQ's implies just 2%.
This means → the market is paying for survival, not growth — neither stock prices in any meaningful share gain.
In plain terms = if either company ends up capturing far more share than the price suggests, the upside comes almost for free.
What will quantum computing actually look like — does it replace GPUs?
Bernstein analyst Mark Newman stated explicitly that quantum computing will not replace traditional hardware — it will run as a specialized accelerator.
The future of advanced computing will be a CPU + GPU + QPU (quantum processing unit — a chip purpose-built for quantum algorithms) three-processor architecture.
This means → quantum isn't "killing Nvidia." It fills in on specific tasks — three legs, each doing its own job.
The field includes heavyweights like IBM, Google, Microsoft, and Intel alongside pure-play quantum firms like Rigetti and Infleqtion; Newman believes a winner-take-all outcome is unlikely.
Rigetti's hand: superconducting qubits + a deep cash pile
Rigetti uses a superconducting qubit approach — building qubits from materials cooled to near absolute zero.
Mizuho analyst Vijay Rakesh reiterated an outperform rating in April with a $33 price target, implying roughly 60% upside from the $20.68 close.
The company held about $590 million in cash as of last December and recently sold a 9-qubit Novera QPU to the University of Saskatchewan.
This means → cash runway is long and the product has external buyers — in a marathon race like quantum, staying alive is itself a competitive edge.
Infleqtion's hand: neutral-atom qubits + Nvidia's endorsement
Infleqtion uses a neutral-atom approach — trapping individual atoms with lasers and using them as qubits. It went public last July.
Citi initiated with a buy rating and a $20 target (about 37% upside); BTIG also initiated at buy with a $22 target (about 51% upside).
The most important external endorsement: Infleqtion is partnering with Nvidia to integrate its neutral-atom quantum computer, Sqale, with Nvidia's AI supercomputers.
Citi analyst Atif Malik called the partnership "a key signal of technology validation." In plain terms = when Nvidia plugs your quantum machine into its own supercomputing ecosystem, it is stamping your technology as credible.
The stocks have already rallied — is there still a case for entry?
Rigetti is up 93% over the past year; Infleqtion has gained 39% in three months since listing.
Bernstein's core thesis: the quantum endgame is still unclear, and current valuations offer an asymmetric opportunity to position across multiple technology paths.
In plain terms = the downside is bounded by what you already see, but the upside far exceeds what the price reflects — the bet is on the "share materialisation" card.
The key milestone to watch: whether each company can convert its technology edge into market share that exceeds the market's expectations as commercialisation advances.
Content is for reference only, not financial advice.