Quantum computing may be the future of tech. But the market is barely paying for it yet.
That gap is the whole pitch. Bernstein told clients this week to look at two quantum stocks.
It says both look cheap for what they could one day become.
Bernstein's idea is simple. Quantum chips won't replace the chips in your computer.
They will just work right next to them.
Picture three chips splitting the job. The CPU runs daily tasks, the GPU powers AI, and a new chip called the QPU handles problems the first two can't crack.
QPU is short for quantum processing unit. It is built for math that normal chips struggle with, like new drugs or hard-to-break codes.
The note ran 28 pages, and the takeaway was clear. This is a step forward, not a swap.
And no single company is likely to win it all.
Big names are already in the race. They include IBM, Google, Microsoft, and Intel.
So this isn't a two-stock field. It's a crowded one.
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Here's the part investors care about. Both stocks are priced as if they barely win.
Take Rigetti first. At today's price, it's valued as if it grabs about 4% of the market.
Infleqtion sits near 2%. If either wins more, the payoff could be big.
The two firms take different paths. Rigetti builds superconducting chips.
Infleqtion uses single atoms held in place by lasers.
Other banks like the odds too. In April, Mizuho kept its "outperform" call on Rigetti.
It set a $33 target, nearly 60% above Friday's price.
Mizuho also pointed to Rigetti's cash. The firm has about $590 million on hand.
It just sold a new chip to a Canadian school. That cash buys time to keep building.
Citi and BTIG both rate Infleqtion a buy. Citi sees about 37% upside, while BTIG sees closer to 51%.
Infleqtion has had a strong run too. It's up about 39% over the past three months.
Rigetti's run is even bigger. The stock is up 93% over the past year.
Part of the draw is a deal with Nvidia. It pairs Infleqtion's quantum machine with Nvidia's AI computers.
Other firms read that as a stamp of approval.
Quantum mostly doesn't work at scale yet. So this is still a bet on the future.
These are small, young firms, and the stocks swing hard.
Either one could move on a single headline. That cuts both ways, up and down.
Bernstein isn't saying these two have already won. The point is simpler.
You can buy into the race without paying like they have.
The bank's read sits alongside calls from other banks like Citi and Mizuho. The market still treats both stocks like long shots.
Bernstein thinks that's the opening.
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