Better Artificial Intelligence Stock: Rigetti Computing vs. Nvidia

Two popular stocks among tech investors lately are Rigetti Computing (NASDAQ: RGTI), which makes quantum computing hardware and software, and the semiconductor company Nvidia (NASDAQ: NVDA). While Nvidia is a much more direct bet on the booming artificial intelligence (AI) market, Rigetti's quantum computing systems are integrated into some existing AI.

Both stocks have soared, too, with Rigetti up 34% and Nvidia skyrocketing 342% over the past three years, compared to the S&P 500's 15% rise. But, which is the better AI stock for long-term investors? Let's take a look.

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What's happening with Nvidia?

If you're in the market for an AI stock, it's hard to beat Nvidia. All major global tech companies have ramped up their data center spending over the past few years as they compete for artificial intelligence dominance.

That's led to a bonanza of data center spending and rising demand for the processors in them. The result has been a boon for Nvidia's chip sales. Revenue from its data center segment soared 142% in fiscal 2025 to $115 billion, and the company's non-GAAP earnings soared 130% to $2.99 per share.

It's also given Nvidia a massive lead in the AI data center processing space, with an estimated 70% to 95% market share. And the AI boom isn't over yet. Nvidia CEO Jensen Huang thinks tech companies will invest $2 trillion in AI data center spending over the next few years, which could lead to even more demand for Nvidia's advanced processors.

The company is well-positioned to benefit from its latest AI processor, Blackwell, which has already spurred strong demand from tech giants and resulted in $11 billion in sales, the company's "fastest product ramp."

What's happening with Rigetti?

Quantum computing offers investors a compelling opportunity because the ramifications of the technology could advance everything from materials science to disease prevention and climate science. Unlike traditional computers, which process bits as either 0s or 1s, quantum computers use qubits, which can be either 0 or 1, or both simultaneously.

That allows them to scale hypothetical scenarios much faster than traditional computers, although sometimes at the cost of making more mistakes. Rigetti makes hardware, software, and quantum cloud computing systems that tap into the massive potential of this market, which could be worth $170 billion by 2040.

Rigetti's comprehensive approach to quantum computing is attractive to investors. It also partnered with some heavy hitters in the cloud space, including Amazon and Microsoft, giving Rigetti's tech real-world credibility (as opposed to theoretical applications that are often associated with quantum computing).

But despite all of the interest in Rigetti, the company's recent financial results weren't impressive, considering sales fell 32% in the fourth quarter to just $2.3 million. That's not a good look for a young quantum computing company that's trying to carve out a niche in a speculative, new market.

Rigetti's share price has soared 639% over the past year, giving its stock an expensive price-to-sales ratio of 147. Investors are now paying a premium for a company whose sales are falling and that's betting on an unproven market.

The verdict: Nvidia is the better AI stock

There's no getting around the fact that all stocks are facing some uncertainty right now. President Trump's tariffs have left the market reeling, and many companies are scrambling to adjust to potential changes. Investors should be more cautious than in the recent past about the potential growth for any company, including Nvidia and Rigetti.

But if you're looking for the better AI stock right now, Nvidia is it. Even if an economic slowdown arises from tariffs, Nvidia has a strong lead in the AI processor market, and tech giants are still clamoring for its chips. AI spending could slow a bit during a downturn, but the spigots won't likely turn off. Tech giants have too much at stake in their race for AI dominance to slow spending too much.

As for Rigetti, I think the stock is simply too speculative. Sure, quantum computing holds a lot of promise, but it could still be years before most companies have real-world uses for the tech. Meanwhile, Rigetti's revenue is tumbling when it should be rising quickly, and its stock is expensive. All of which means it's probably best to leave Rigetti's shares alone right now.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.