Bernstein says the future of tech is quantum. These two stocks have the most upside

§ 01 Executive Snapshot

• What: Bernstein highlights Rigetti Computing and Infleqtion as promising stocks in the quantum computing sector.
• Who: Key players include Rigetti Computing (RGTI), Infleqtion (INFQ), and analysts from Bernstein led by Mark Newman.
• Why it matters: The report underscores the potential of quantum computing as a specialized accelerator in technology, indicating significant future profits and investment opportunities.

§ 02 Key Developments

• Bernstein claims that quantum computing will not replace traditional hardware but will function as a specialized accelerator.
• Analysts state that the market is unlikely to be winner-take-all and that different architectures will suit various use cases better.
• Rigetti Computing has cash and equivalents of about $590 million, which positions it well for future technological advancements.
• Analysts have set a price target of $33 for Rigetti, suggesting nearly 60% upside from its current price of $20.68.
• Infleqtion has received positive ratings from analysts at Citigroup and BTIG, with price targets suggesting 37% and 51% upside, respectively.

§ 03 Strategic Context

• The quantum computing field is still developing, with no clear winners yet, which creates a landscape ripe for investment and innovation.
• The integration of quantum computing with AI, as seen with Infleqtion's partnership with Nvidia, indicates a convergence of technologies that could enhance capabilities and market relevance.

§ 04 Strategic Implications

• The immediate implication is the identification of Rigetti and Infleqtion as attractive investment opportunities due to their favorable risk-reward ratios.
• Long-term implications suggest that companies with specialized technologies in quantum computing may play crucial roles in the future of computing, particularly as the market evolves.

§ 05 Risks & Constraints

• The primary risk involves the speculative nature of the quantum computing market, where many companies may not survive as the technology matures.
• Dependence on technological advancements and market adoption rates poses execution risks for companies in the quantum sector.

§ 06 Watchlist / Forward Signals

• Upcoming milestones include the continued development and scaling of quantum technologies, particularly Rigetti's goal to scale its chiplet to 1,000 qubits.
• Future developments to watch include any significant partnerships or advancements in quantum applications that could validate the technologies of Rigetti and Infleqtion.