Nvidia vs. Rigetti: The Better AI Stock for Long-Term Investors
Two stocks that have captured the attention of tech investors recently are Rigetti Computing (RGTI 16.14%), a company specializing in quantum computing hardware and software, and Nvidia (NVDA 2.33%), a leading semiconductor company. While Nvidia is more directly tied to the booming artificial intelligence (AI) market, Rigetti’s quantum computing systems are being integrated into some existing AI applications. Both stocks have seen significant gains, with Rigetti up 34% and Nvidia skyrocketing 342% over the past three years, outpacing the S&P 500’s 15% rise. But which is the better AI stock for long-term investors?
Nvidia’s Strong Position in AI
Nvidia is currently a top choice for AI stock investors. Major global tech companies have been increasing their data center spending to compete in the AI space, creating a surge in demand for Nvidia’s processors. The company’s data center segment revenue soared 142% in fiscal 2025 to $115 billion, with non-GAAP earnings rising 130% to $2.99 per share. Nvidia now holds an estimated 70% to 95% market share in AI data center processing. CEO Jensen Huang predicts that tech companies will invest $2 trillion in AI data center spending over the next few years, potentially driving further demand for Nvidia’s advanced processors. The company’s latest AI processor, Blackwell, has already generated $11 billion in sales, marking Nvidia’s “fastest product ramp.”
Rigetti’s Quantum Computing Potential
Quantum computing presents an intriguing opportunity for investors, as it could revolutionize fields such as materials science, disease prevention, and climate science. Rigetti offers a comprehensive approach to quantum computing, including hardware, software, and quantum cloud computing systems. The company has partnered with major cloud players like Amazon and Microsoft, lending credibility to its technology. However, Rigetti’s recent financial results have been underwhelming, with a 32% drop in sales to $2.3 million in the fourth quarter. Despite its 639% share price surge over the past year, the company’s revenue is declining while its stock has an expensive price-to-sales ratio of 147.
The Verdict: Nvidia Leads in AI Investment
While both stocks face uncertainty, Nvidia is currently the better AI stock for investors. The company maintains a strong lead in the AI processor market, and tech giants continue to demand its chips. Even in the face of potential economic slowdowns due to tariffs, AI spending is unlikely to halt completely. In contrast, Rigetti’s stock is considered too speculative due to the unproven nature of the quantum computing market and its declining revenue. For now, Nvidia appears to be the safer bet in the AI space.
