Forget Rigetti Computing: This Dividend‑Paying Powerhouse Has a Much Stronger Upside
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By Rich Smith – Feb 25, 2026 at 4:32AM ESTKey PointsRigetti stock is at risk of missing earnings next month.The company probably won't be profitable for years.IBM also does quantum -- and it's already profitable.We’re bullish on these 10 stocks ›NASDAQ: RGTIRigetti ComputingMarket Cap$5.4BToday's Changeangle-down(2.93%) $0.47Current Price$16.49Price as of February 24, 2026 at 3:58 PM ETIBM has everything Rigetti lacks -- free cash flow, GAAP profits, and profits that are growing.Is Rigetti Computing (RGTI +2.93%) stock a buy? Crunching the numbers last month, I concluded that Rigetti stock probably is not a buy, at least not in the short term, because a lack of new sales announcements of quantum computing systems implies the stock probably missed earnings in the fourth quarter. (We'll find out whether I was right about that in just a couple of weeks, when Rigetti reports its Q4 results on March 4.) Image source: Getty Images. The trouble with Rigetti More recently, my colleague John Bromels highlighted another risk for Rigetti stock, which suggests it could be literal years before anyone knows if Rigetti stock is even "commercially viable," much less a stock valued cheaply enough that it's a buy. As Bromels explains: "For a quantum computer to be commercially viable, it's estimated to need at least 1 million physical qubits and 99.99% two-qubit gate fidelity (and probably closer to 99.99999%)." Rigetti, meanwhile, doesn't have even 1,000 qubits to its name (nor is it 99.9% accurate), and is probably at least a half-decade away from passing "the 1 million-qubit threshold." Translation: You probably won't know if Rigetti has a viable business, much less one that can compete with other, more viable businesses that are outracing Rigetti, for another five years. What we do know about Rigetti is that, right now, it's losing about $350 million a year, and its losses have increased every year for the last five years. We also know that, according to analysts polled by S&P Global Market Intelligence, Rigetti isn't expected to earn any profit whatsoever through at least 2030, and possibly longer -- which tallies with the whole "commercially viable" thing. When it comes to being commercially viable, Rigetti isn't yet. And it may never be. ExpandNASDAQ: RGTIRigetti ComputingToday's Change(2.93%) $0.47Current Price$16.49Key Data PointsMarket Cap$5.4BDay's Range$15.66 - $16.7352wk Range$6.86 - $58.15Volume8.2KAvg Vol33MGross Margin-6849.48% A better idea than Rigetti: IBM Don't get me wrong. Rigetti's not totally a lost cause. The same analysts who doubt Rigetti's path to profits do admit it's not burning cash terribly fast. With nearly $450 million in the bank, and only $150 million in cash burn projected between now and 2028, Rigetti has the cash it needs to remain alive... at least long enough for investors to figure out if it can become "viable." Still, Rigetti's a bit of a gamble -- and if you ask me, there's a safer way to bet on quantum computing becoming a viable technology: IBM (IBM +2.71%). ExpandNYSE: IBMInternational Business MachinesToday's Change(2.71%) $6.06Current Price$229.41Key Data PointsMarket Cap$214BDay's Range$223.65 - $236.5452wk Range$214.50 - $324.90Volume962Avg Vol4.9MGross Margin58.06%Dividend Yield2.93% IBM has been researching quantum computers even longer than Rigetti, after all, and has already racked up more than $1 billion in orders for various quantum "tests, trials, and explorations." (This is as compared to Rigetti, which is doing barely $7.5 million in annual sales.) IBM is working on a "fault-tolerant" quantum computer and expects to have a commercially viable option ready by 2029. IBM's also significantly more financially viable than Rigetti. The computing giant earned $10.6 billion in profit over the past year, and generated even more free cash flow -- $11.6 billion. With a much more diversified business, IBM's earnings are growing north of 7% annually. Priced at 22.6 times trailing earnings, with a price-to-free-cash-flow ratio of only 20.6, and with a 2.6% dividend yield, IBM may not be the sexiest way to invest in quantum computing, but to me, it looks like one of the safest.Read NextFeb 24, 2026 •By Johnny RiceWhere Will Rigetti Computing Be by 2030?Feb 21, 2026 •By Johnny RiceVanguard Owns 36 Million Shares of Rigetti Computing. Here's Why That $577 Million Position Doesn't Mean What You Think It Does.Feb 20, 2026 •By Johnny Rice2 Incredibly Popular Stocks to Sell Before They PlummetFeb 19, 2026 •By Rick OrfordUnfortunate News Hides Behind Rigetti's 1300% SurgeFeb 17, 2026 •By Anthony Di PizioCathie Wood's Ark Invest Just Delivered Bad News for Quantum Computing Stock Rigetti ComputingFeb 17, 2026 •By Dave KovaleskiDown 72%, Should You Buy the Dip on Rigetti Computing?About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedRigetti ComputingNASDAQ: RGTI$16.49 (+2.93%) $+0.47International Business MachinesNYSE: IBM$229.41 (+2.71%) $+6.06*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.