Quantum computing stocks are having their moment, and Rigetti Computing (NASDAQ: RGTI) sits at the center of the frenzy. The stock has surged about 100% year to date, riding technical milestones and government contracts to fresh highs. The company just unveiled a 36-qubit modular system with 99.5% median 2-qubit gate fidelity. It also secured a $5.8 million Air Force contract for quantum networking. Some analysts have turned bullish on the industry as a whole in response to this rapid progress.

But look past the headlines, and Rigetti's fundamentals paint a sobering picture. Revenue fell to $1.8 million last quarter, down from $3.1 million a year earlier. The company is also burning nearly $40 million quarterly. At 990 times trailing sales, the stock's valuation assumes quantum computing transforms from science experiment to commercial reality -- soon. That disconnect between promise and performance raises the question every investor must answer: Is this real progress or just another hype cycle?

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Source Fool.com