After a sharp July pullback, two quantum computing pure-plays are drawing renewed attention from analysts forecasting significant upside based on strong second-quarter projections.
Rigetti Computing (NASDAQ: RGTI) and Quantum Computing Inc. (NASDAQ: QUBT) have both surrendered substantial gains since June, falling 42.1% and 36.6% respectively as investors locked in profits from an explosive second-quarter rally.
The broader quantum computing sector has seen widespread selling, with the Defiance Quantum ETF (QTUM) declining nearly 12% between June 1 and July 23, reflecting macro-driven caution rather than any deterioration in company fundamentals.
Rising concerns about the sustainability of AI infrastructure spending and lofty valuations across technology stocks have weighed heavily on high-beta names throughout July.
Despite the turbulence, Zacks’ short-term price targets continue to imply triple-digit upside for both companies, with Wall Street maintaining its long-term optimism for the sector.
The broader economic backdrop has remained resilient, with the ISM Manufacturing PMI easing to 53.3 in June from 54.0 in May, still above the 50-point expansion threshold for the sixth consecutive month.
Rigetti continues to stand out as a compelling pure-play investment, having reported revenue growth of nearly 199% year over year in the first quarter of 2026, driven by increased government and commercial activity.
The company closed that quarter with approximately $569 million in cash, cash equivalents and available-for-sale investments, while management reiterated plans to launch its 108-qubit Cepheus-1 system in 2026.
For the second quarter of 2026, Rigetti is projected to deliver earnings growth of 40% alongside revenue growth of 173%, with an average analyst price target of $31.00 representing upside of 108.8% from its last closing price of $14.85.
QCi reported first-quarter 2026 revenues of $3.7 million, a dramatic increase from just $39,000 a year earlier, primarily driven by contributions from the Luminar Semiconductor and NuCrypt acquisitions.
The company ended the first quarter with $1.4 billion in cash, cash equivalents and investments, providing substantial financial flexibility to pursue product development and new enterprise opportunities.
For the second quarter of 2026, QUBT is projected to report earnings growth of 16.7% on revenue growth of 7,733%, with an average price target of $18.33 representing upside of 133.2% from its last closing price of $7.86.
Both stocks currently carry a Zacks Rank of 3, or Hold, reflecting a balanced near-term outlook even as longer-term price targets remain decidedly bullish.
Governments and enterprises continue to increase spending on quantum technologies, with commercial adoption gradually expanding into optimization, cybersecurity, artificial intelligence and drug discovery applications.
Valuation sensitivity remains the central risk for both names, as most quantum pure-plays trade at levels implying years of future execution, making them highly reactive to shifts in interest-rate expectations and broader market sentiment.
