Quantum computing stocks are having a moment.
Following Alphabet's revelation of its Willow quantum chip in December, quantum computing stocks including Rigetti Computing (NASDAQ: RGTI) soared, and attention has remained on the sector as Microsoft and Nvidia have made their own announcements about quantum computing.
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Rigetti Computing is still a development-stage company, as it brought in just $10.8 million in revenue in 2024 and an operating loss of $68.5 million. Its revenue also declined by 10% during the year, a sign that investors' hopes for explosive growth are not showing up in the results so far.
Rigetti touted a new strategic collaboration with Quanta Computer, and it also made its first QPU (quantum processing unit) sale to an academic institution, selling one of its Novera QPU products to Montana State University.
At a market cap of $2.8 billion, Rigetti Computing is pricey for a stock with barely any revenue and negative revenue growth in recent quarters, setting it up for a potential pullback if the excitement around quantum computing fades.
With that risk in mind, here are two smaller stocks that look well-positioned to be worth more than Rigetti Computing a year from now.
Image source: Getty Images.
Amplitude (NASDAQ: AMPL) is a cloud software stock that specializes in digital product analytics and optimization, meaning it gives companies the tools to see how customers are using their digital products so they can improve them and increase return on investment.
Amplitude's analytics software helped Peloton realize that social interaction was key to member retention. The technology also helped guide Burger King's "Whopper Detour" campaign, which offered customers a Whopper for $0.01 if they downloaded the app near a McDonald's.
The company went public near the tail end of the pandemic boom, and the stock plunged in 2022 like a lot of software stocks. However, management has said that post-pandemic-related churn is now behind it, and it expects its growth rate to improve over the coming years.
Amplitude is also focused on launching an artificial intelligence (AI) agent, which has the potential to be a game-changer for the company. It would accelerate customer insights and make it easier to find relevant information using a chat interface like ChatGPT.
At a market cap of $1.55 billion, Amplitude stock could top Rigetti in another year if Rigetti pulls back, or if Amplitude's AI agent gains significant traction.
Homebuilders have had a rough go of it in recent years as the housing market cooled after the pandemic ended, and it has remained soft as mortgage rates are still elevated.
However, there's a substantial opportunity for homebuilders like Dream Finders Homes (NYSE: DFH), as there is an estimated shortage of 4 million homes in the country.
Dream Finders Homes offers an appealing way to get exposure to the homebuilding sector, as it uses an asset-light business model pioneered by best-in-class homebuilder NVR. Rather than buying land outright, which can add a lot of balance sheet risk, Dream Finders Homes buys land options that it can exercise if it later chooses to build on that land.
The company primarily builds homes in the Southeast, and recent results have been promising.
In the fourth quarter, revenue jumped 35% to $1.5 billion, and business momentum looked even stronger with 46% net new orders to 1,611. The company also grew with the help of acquisitions, including the regional home builder Crescent Homes and the Jet HomeLoans mortgage loan originator, showing the company has multiple avenues for growth.
At a market cap of $2.27 billion, Dream Finders Homes could easily be worth more than Rigetti Computing in another year. If the macro climate improves and mortgage rates start to come down, Dream Finders Homes has the potential to surge, and its asset-light business model should protect the stock from a recession or broader economic weakness.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Dream Finders Homes, Microsoft, NVR, Nvidia, and Peloton Interactive. The Motley Fool recommends Burger King parent Restaurant Brands International and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.