Rigetti Computing Stock Rises for Third Consecutive Day
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- Stock Surge: Rigetti Computing's stock rose 8.2% by 11 a.m. ET on Monday, marking its third consecutive day of gains, reflecting sustained market interest and increased investor confidence in the quantum computing sector.
- Analyst Rating Impact: Mizuho analyst Vijay Rakesh raised D-Wave Quantum's price target to $35 per share, praising its plan to build a gate-based quantum computer with 10 logical qubits by 2030, while predicting a market size of $450 billion to $850 billion by 2040, further solidifying D-Wave's leadership in the quantum computing market.
- Market Challenges for Rigetti: Despite Rigetti's faster-than-expected sales growth, Rakesh lowered its price target to $27 per share a month ago, indicating concerns over its valuation and highlighting the significant challenges Rigetti faces in the competitive quantum computing landscape.
- Cautious Investor Sentiment: While the quantum computing industry holds vast potential, analysts generally expect neither Rigetti nor D-Wave to turn a profit in the next five years, urging investors to carefully assess their risk tolerance and be prepared for a long-term investment horizon.
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Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 20.245
Low
30.00
Averages
39.75
High
51.00
Current: 20.245
Low
30.00
Averages
39.75
High
51.00
About RGTI
Rigetti Computing, Inc. is a full-stack quantum computing company. The Company operates quantum computers over the cloud and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. It has developed a multi-chip quantum processor for scalable quantum computing systems. Through the Company’s Quantum Computing as a Service (QCaaS) platform, its machines can be integrated into any public, private or hybrid cloud. It is also engaged in the sale of quantum processing units (QPUs) and custom computing components, and development contracts and other services. Its QPUs contain fabricated silicon-based chips featuring superconducting qubits. The Company designs and manufactures its chips in-house at Fab-1, an integrated quantum device manufacturing facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. government announced a $2 billion investment plan for nine quantum computing companies, with Rigetti Computing receiving $100 million, which is expected to enhance its market position; however, the company faces significant financial pressures as it remains in the startup phase.
- Stock Price Volatility: Rigetti's stock has surged by 20% since the announcement, but analysts predict its valuation could decline by over 50% in the second half of the year, primarily due to unstable revenue growth and the risk of substantial losses.
- Technical Challenges: Rigetti's Cepheus-1-108Q quantum computer features 108 qubits, boasting a single-qubit gate fidelity of 99.9%, yet its two-qubit gate fidelity of only 99.1% indicates it still cannot solve many real-world problems, highlighting the complexities of quantum computing technology.
- Financial Condition: Rigetti's revenue soared by 198% year-over-year to $4.4 million in Q1, but with operating expenses of $27.3 million leading to a net loss of $20.5 million, it underscores the severe challenges the company faces in achieving profitability.
See More
Analysis of Quantum Computing Investment Prospects
- Market Outlook: Quantum computing is expected to become commercially viable by 2030, prompting investors to position themselves early for maximum gains, particularly with smaller start-ups potentially offering higher returns.
- Technological Path Differences: IonQ's trapped-ion technology boasts a 99.99% 2-qubit gate fidelity, significantly outperforming Rigetti's 99.1%, giving IonQ an edge in accuracy and computational capacity, which could drive market share growth.
- Financial Performance Comparison: IonQ's Q1 revenue surged 755% year-over-year to nearly $65 million, while Rigetti's revenue was only $4.4 million, indicating a higher market interest in IonQ's products and reflecting its stronger competitive position.
- Investment Strategy Recommendation: Although IonQ currently shows superior performance, the quantum computing sector is still in its infancy, so investors should consider diversifying into multiple quantum computing stocks or ETFs to mitigate risk while capitalizing on future growth opportunities.
See More
Analysis of IonQ vs. Rigetti in Quantum Computing
- Technology Comparison: IonQ's trapped-ion technology achieves a 99.99% 2-qubit gate fidelity, significantly surpassing Rigetti's 99.1%, which gives IonQ an edge in accuracy despite its slower computation speed.
- Revenue Growth: IonQ's revenue surged 755% year-over-year in Q1 2025 to nearly $65 million, indicating strong market interest in its products, while Rigetti's revenue was only $4.4 million in the same period, highlighting IonQ's superior market appeal.
- Market Outlook: With quantum computing expected to become commercially viable by 2030, investors need to position themselves early, and IonQ, as a leader, could see substantial returns as the technology matures over the coming years.
- Investment Strategy: While IonQ is viewed as the better investment option, the quantum computing sector is still developing, prompting investors to consider diversifying into multiple quantum stocks or ETFs to mitigate risks and capitalize on potential market opportunities.
See More
Analysis of Rigetti Computing's Stock Volatility
- Stock Pullback: Rigetti Computing's stock has fallen from an all-time high of $58 in October to around $21 currently, indicating a potential waning of market enthusiasm for quantum computing, prompting investors to carefully assess buying opportunities.
- Government Funding Support: The U.S. government announced it would provide Rigetti with up to $100 million in funding, which, despite potential strings attached, serves as a positive signal for the quantum computing industry and strengthens Rigetti's market position.
- Financial Performance: In Q1 2026, Rigetti's revenue tripled year-over-year to $4.4 million, although operating losses increased; however, the company maintains over $400 million in cash, ensuring its ability to continue development.
- Intense Market Competition: The quantum computing sector is highly competitive, with Rigetti facing challenges from companies like IonQ and D-Wave, as well as tech giants like Google and IBM; nevertheless, government backing and ample cash flow position it for future potential.
See More
U.S. Government to Invest $100 Million in Rigetti
- Government Backing: The U.S. government has signed a letter of intent to invest $100 million in Rigetti over the next three years, which is a positive development for the quantum computing industry, although it may come with several strings attached.
- Revenue Growth Potential: Rigetti's revenue tripled year-over-year in Q1 2026 to $4.4 million, driven by research deals and sales of experimental systems, despite significant operating losses still being a concern.
- Liquidity Advantage: The company boasts over $400 million in cash and equivalents on its balance sheet, providing a solid runway for continued development while seeking commercial applicability, indicating strong financial health.
- Intense Market Competition: Although Rigetti's stock has fallen over 4% in 2026, it has still risen nearly 85% over the past 12 months, facing competition from players like IonQ and D-Wave, with its long-term success hinging on the realization of commercial applications.
See More
U.S. Government Invests $100 Million in Rigetti Computing
- Government Investment Plan: The U.S. government has announced a $100 million investment in Rigetti Computing over the next three years, although the company leads in quantum computing, its systems still exhibit high error rates, making them impractical for solving complex real-world problems.
- Stock Price Volatility Risk: Rigetti's stock has surged by 20% since the announcement, yet with a market cap of $7 billion, analysts predict a potential decline of over 50% in its stock price in the second half of 2026, reflecting concerns over its high valuation.
- Revenue Growth and Challenges: Rigetti's revenue soared by 198% year-over-year in Q1 to $4.4 million, with an expected $8.4 million order for the Cepheus-1-108Q to India, yet its revenue declined in 2025, indicating instability in growth.
- Financial Concerns: Rigetti reported operating expenses of $27.3 million in Q1, resulting in a net loss of $20.5 million; despite having $569 million in cash, a capital raise may be necessary in the future, potentially diluting existing shareholders' equity.
See More
U.S. Government Invests in Quantum Computing Firms
- Government Investment Plan: The U.S. government announced a $2 billion investment plan for nine quantum computing companies, with Rigetti Computing receiving $100 million, which is expected to enhance its market position; however, the company faces significant financial pressures as it remains in the startup phase.
- Stock Price Volatility: Rigetti's stock has surged by 20% since the announcement, but analysts predict its valuation could decline by over 50% in the second half of the year, primarily due to unstable revenue growth and the risk of substantial losses.
- Technical Challenges: Rigetti's Cepheus-1-108Q quantum computer features 108 qubits, boasting a single-qubit gate fidelity of 99.9%, yet its two-qubit gate fidelity of only 99.1% indicates it still cannot solve many real-world problems, highlighting the complexities of quantum computing technology.
- Financial Condition: Rigetti's revenue soared by 198% year-over-year to $4.4 million in Q1, but with operating expenses of $27.3 million leading to a net loss of $20.5 million, it underscores the severe challenges the company faces in achieving profitability.
See More
Analysis of Quantum Computing Investment Prospects
- Market Outlook: Quantum computing is expected to become commercially viable by 2030, prompting investors to position themselves early for maximum gains, particularly with smaller start-ups potentially offering higher returns.
- Technological Path Differences: IonQ's trapped-ion technology boasts a 99.99% 2-qubit gate fidelity, significantly outperforming Rigetti's 99.1%, giving IonQ an edge in accuracy and computational capacity, which could drive market share growth.
- Financial Performance Comparison: IonQ's Q1 revenue surged 755% year-over-year to nearly $65 million, while Rigetti's revenue was only $4.4 million, indicating a higher market interest in IonQ's products and reflecting its stronger competitive position.
- Investment Strategy Recommendation: Although IonQ currently shows superior performance, the quantum computing sector is still in its infancy, so investors should consider diversifying into multiple quantum computing stocks or ETFs to mitigate risk while capitalizing on future growth opportunities.
See More
Analysis of IonQ vs. Rigetti in Quantum Computing
- Technology Comparison: IonQ's trapped-ion technology achieves a 99.99% 2-qubit gate fidelity, significantly surpassing Rigetti's 99.1%, which gives IonQ an edge in accuracy despite its slower computation speed.
- Revenue Growth: IonQ's revenue surged 755% year-over-year in Q1 2025 to nearly $65 million, indicating strong market interest in its products, while Rigetti's revenue was only $4.4 million in the same period, highlighting IonQ's superior market appeal.
- Market Outlook: With quantum computing expected to become commercially viable by 2030, investors need to position themselves early, and IonQ, as a leader, could see substantial returns as the technology matures over the coming years.
- Investment Strategy: While IonQ is viewed as the better investment option, the quantum computing sector is still developing, prompting investors to consider diversifying into multiple quantum stocks or ETFs to mitigate risks and capitalize on potential market opportunities.
See More
Analysis of Rigetti Computing's Stock Volatility
- Stock Pullback: Rigetti Computing's stock has fallen from an all-time high of $58 in October to around $21 currently, indicating a potential waning of market enthusiasm for quantum computing, prompting investors to carefully assess buying opportunities.
- Government Funding Support: The U.S. government announced it would provide Rigetti with up to $100 million in funding, which, despite potential strings attached, serves as a positive signal for the quantum computing industry and strengthens Rigetti's market position.
- Financial Performance: In Q1 2026, Rigetti's revenue tripled year-over-year to $4.4 million, although operating losses increased; however, the company maintains over $400 million in cash, ensuring its ability to continue development.
- Intense Market Competition: The quantum computing sector is highly competitive, with Rigetti facing challenges from companies like IonQ and D-Wave, as well as tech giants like Google and IBM; nevertheless, government backing and ample cash flow position it for future potential.
See More
U.S. Government to Invest $100 Million in Rigetti
- Government Backing: The U.S. government has signed a letter of intent to invest $100 million in Rigetti over the next three years, which is a positive development for the quantum computing industry, although it may come with several strings attached.
- Revenue Growth Potential: Rigetti's revenue tripled year-over-year in Q1 2026 to $4.4 million, driven by research deals and sales of experimental systems, despite significant operating losses still being a concern.
- Liquidity Advantage: The company boasts over $400 million in cash and equivalents on its balance sheet, providing a solid runway for continued development while seeking commercial applicability, indicating strong financial health.
- Intense Market Competition: Although Rigetti's stock has fallen over 4% in 2026, it has still risen nearly 85% over the past 12 months, facing competition from players like IonQ and D-Wave, with its long-term success hinging on the realization of commercial applications.
See More
U.S. Government Invests $100 Million in Rigetti Computing
- Government Investment Plan: The U.S. government has announced a $100 million investment in Rigetti Computing over the next three years, although the company leads in quantum computing, its systems still exhibit high error rates, making them impractical for solving complex real-world problems.
- Stock Price Volatility Risk: Rigetti's stock has surged by 20% since the announcement, yet with a market cap of $7 billion, analysts predict a potential decline of over 50% in its stock price in the second half of 2026, reflecting concerns over its high valuation.
- Revenue Growth and Challenges: Rigetti's revenue soared by 198% year-over-year in Q1 to $4.4 million, with an expected $8.4 million order for the Cepheus-1-108Q to India, yet its revenue declined in 2025, indicating instability in growth.
- Financial Concerns: Rigetti reported operating expenses of $27.3 million in Q1, resulting in a net loss of $20.5 million; despite having $569 million in cash, a capital raise may be necessary in the future, potentially diluting existing shareholders' equity.
See More
