Rigetti Computing valued higher amid quantum computing sector growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
0mins
Should l Buy RGTI?
Rigetti Computing Inc. shares rose by 5.03% and reached a 5-day high, reflecting positive sentiment in the quantum computing sector.
The increase in Rigetti's stock price is attributed to its strong market valuation of $5.5 billion, significantly higher than its competitor Quantum Computing, which is valued at $2 billion. This valuation indicates greater market confidence in Rigetti's leadership position and comprehensive product offerings, including quantum processing chips and cloud services, which have driven its annual revenue to exceed that of Quantum Computing by over ten times. Investors view Rigetti as a more attractive option, especially during price dips, suggesting potential for better returns.
The implications of this price movement suggest that Rigetti is well-positioned in the growing quantum computing market, attracting investor interest and confidence in its future growth potential.
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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: 18.340
Low
30.00
Averages
39.75
High
51.00
Current: 18.340
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.
Rigetti Computing Set to Report Q1 Results Amid Quantum Sector Challenges
- Earnings Expectations: Rigetti Computing is expected to report a loss of 4 cents per share with revenues of $4.13 million for Q1, indicating significant short-term financial pressure despite the long-term potential of quantum computing.
- Orders and Investments: The company secured an $8.4 million order for a 108-qubit quantum computer and plans to invest up to $100 million in the UK, demonstrating confidence in the quantum computing market despite challenges from system delays.
- Market Sentiment Shift: Quantum computing stocks have come under pressure as market sentiment turned risk-off, with analysts rating Rigetti as a “Sell” with an overall score of 2.05, reflecting a conflict between growth potential and profitability concerns.
- Financial Performance: Over the past year, Rigetti has beaten EPS and revenue estimates 50% of the time, but recent EPS estimates have seen no upward revisions, indicating cautious market sentiment regarding its future performance.
See More
Launch of First-to-Market Leveraged ETF for Xanadu Quantum Technologies
- First Leveraged ETF Launch: Tradr ETFs has launched the Tradr 2X Long XNDU Daily ETF, the first single stock leveraged ETF in the market, aiming to deliver two times (200%) the daily performance of Xanadu Quantum Technologies, indicating strong investor interest in cutting-edge technology narratives.
- Asset Management Scale: Tradr's lineup of 64 leveraged ETFs manages over $5 billion in assets, showcasing its significant influence in the high-end investment tools market while providing investors with the convenience of avoiding margin use and complex options trading.
- Positive Market Response: Matt Markiewicz, Head of Product at Tradr ETFs, noted that Xanadu's public listing reflects strong market demand for advanced technology narratives, which is expected to drive the company's growth trajectory in the coming years.
- Investor Risk Advisory: While leveraged ETFs offer high return potential, they also come with significant risks, requiring investors to understand the implications of leverage on returns and to actively monitor and manage their investments in the short term.
See More
Rigetti Computing Faces Major Challenges in Quantum Race
- Market Position Lagging: With a market cap around $5 billion, Rigetti Computing has potential in quantum computing, but its failure to advance in DARPA's Quantum Benchmarking Initiative indicates its products are behind competitors, which could impact future market share.
- Revenue Decline: Rigetti's revenue in Q4 2024 was $1.9 million, down from $2.3 million in Q4 2023, while rival IonQ saw a 429% increase to $61.9 million, highlighting Rigetti's disadvantage in market competition.
- Technical Path Choice: By opting for superconducting qubits, Rigetti follows a popular but competitive route, facing stiff competition from well-funded players like IBM and Google, which diminishes its chances of success.
- Cautious Investment Advice: Given Rigetti's underperformance in the quantum computing sector, analysts recommend avoiding its stock and considering other technology-leading and rapidly growing quantum computing companies or related ETFs to mitigate investment risk.
See More
Rigetti Computing Faces Competitive Pressure in Quantum Race
- Intensifying Market Competition: Rigetti Computing failed to advance in the Quantum Benchmarking Initiative, indicating its products are lagging behind competitors, particularly against well-funded firms like IBM and Google, which may lead to a further shrinkage of its market share.
- Poor Financial Performance: In Q4 2024, Rigetti reported revenue of $1.9 million, down from $2.3 million in Q4 2023, highlighting its lackluster growth, while rival IonQ saw a staggering 429% year-over-year increase in revenue to $61.9 million, further emphasizing Rigetti's disadvantage.
- Risky Technology Path: By opting for superconducting qubits as the core technology for its quantum computing, Rigetti faces significant competitive pressure due to the same approach taken by IBM and Google, thereby reducing its chances of success in the market.
- Cautious Investment Recommendation: Given Rigetti's market performance and slow technological progress, analysts suggest investors consider other more promising quantum computing companies or related ETFs, as Rigetti's stock is not recommended under current circumstances.
See More
Nvidia Reshapes Quantum Computing Landscape
- Stock Rebound: Following Nvidia's announcement of the new quantum computing model Ising, quantum start-ups saw significant stock increases, with Rigetti rising 13.3%, IonQ up 21%, and D-Wave climbing 22.6%, indicating a renewed market confidence in quantum technology.
- Collaboration Opportunities: Nvidia's Ising model will provide an open-source and AI-powered platform for quantum computing, with IonQ and Rigetti actively partnering with Nvidia, enhancing their technological capabilities and potentially accelerating the adoption of quantum computing.
- Market Outlook: As the world's largest company by market cap, Nvidia's investment in quantum computing signals strong business potential, attracting attention from giants like Alphabet and IBM, which will provide quantum start-ups with greater support and resources in a competitive landscape.
- Technology Integration: Nvidia's Ising model positions AI as the operating system for quantum machines, improving the usability and reliability of quantum computing, thereby enhancing the market competitiveness of quantum start-ups and driving industry growth.
See More
Evaluating Quantum Computing Stocks: Rigetti vs Quantum Computing
- Market Valuation Comparison: Rigetti Computing is valued at $5.5 billion, significantly higher than Quantum Computing's $2 billion, indicating greater market confidence in Rigetti's leadership position in the quantum computing sector.
- Product Comprehensive Advantage: Rigetti offers a more comprehensive product lineup, including quantum processing chips and control systems, and has developed a quantum cloud services platform, making it more appealing to customers and driving its annual revenue to exceed Quantum Computing's by over ten times.
- Technology Application Differences: Quantum Computing focuses on photonics and manufactures quantum computing components, but its business leans more towards component manufacturing rather than complete quantum computers, limiting its market potential and revenue growth.
- Investment Risk Assessment: Although both stocks are speculative and carry high risks, Rigetti is viewed as a more attractive investment option in the current market environment, especially during price dips, which may yield better returns.
See More
Rigetti Computing Set to Report Q1 Results Amid Quantum Sector Challenges
- Earnings Expectations: Rigetti Computing is expected to report a loss of 4 cents per share with revenues of $4.13 million for Q1, indicating significant short-term financial pressure despite the long-term potential of quantum computing.
- Orders and Investments: The company secured an $8.4 million order for a 108-qubit quantum computer and plans to invest up to $100 million in the UK, demonstrating confidence in the quantum computing market despite challenges from system delays.
- Market Sentiment Shift: Quantum computing stocks have come under pressure as market sentiment turned risk-off, with analysts rating Rigetti as a “Sell” with an overall score of 2.05, reflecting a conflict between growth potential and profitability concerns.
- Financial Performance: Over the past year, Rigetti has beaten EPS and revenue estimates 50% of the time, but recent EPS estimates have seen no upward revisions, indicating cautious market sentiment regarding its future performance.
See More
Launch of First-to-Market Leveraged ETF for Xanadu Quantum Technologies
- First Leveraged ETF Launch: Tradr ETFs has launched the Tradr 2X Long XNDU Daily ETF, the first single stock leveraged ETF in the market, aiming to deliver two times (200%) the daily performance of Xanadu Quantum Technologies, indicating strong investor interest in cutting-edge technology narratives.
- Asset Management Scale: Tradr's lineup of 64 leveraged ETFs manages over $5 billion in assets, showcasing its significant influence in the high-end investment tools market while providing investors with the convenience of avoiding margin use and complex options trading.
- Positive Market Response: Matt Markiewicz, Head of Product at Tradr ETFs, noted that Xanadu's public listing reflects strong market demand for advanced technology narratives, which is expected to drive the company's growth trajectory in the coming years.
- Investor Risk Advisory: While leveraged ETFs offer high return potential, they also come with significant risks, requiring investors to understand the implications of leverage on returns and to actively monitor and manage their investments in the short term.
See More
Rigetti Computing Faces Major Challenges in Quantum Race
- Market Position Lagging: With a market cap around $5 billion, Rigetti Computing has potential in quantum computing, but its failure to advance in DARPA's Quantum Benchmarking Initiative indicates its products are behind competitors, which could impact future market share.
- Revenue Decline: Rigetti's revenue in Q4 2024 was $1.9 million, down from $2.3 million in Q4 2023, while rival IonQ saw a 429% increase to $61.9 million, highlighting Rigetti's disadvantage in market competition.
- Technical Path Choice: By opting for superconducting qubits, Rigetti follows a popular but competitive route, facing stiff competition from well-funded players like IBM and Google, which diminishes its chances of success.
- Cautious Investment Advice: Given Rigetti's underperformance in the quantum computing sector, analysts recommend avoiding its stock and considering other technology-leading and rapidly growing quantum computing companies or related ETFs to mitigate investment risk.
See More
Rigetti Computing Faces Competitive Pressure in Quantum Race
- Intensifying Market Competition: Rigetti Computing failed to advance in the Quantum Benchmarking Initiative, indicating its products are lagging behind competitors, particularly against well-funded firms like IBM and Google, which may lead to a further shrinkage of its market share.
- Poor Financial Performance: In Q4 2024, Rigetti reported revenue of $1.9 million, down from $2.3 million in Q4 2023, highlighting its lackluster growth, while rival IonQ saw a staggering 429% year-over-year increase in revenue to $61.9 million, further emphasizing Rigetti's disadvantage.
- Risky Technology Path: By opting for superconducting qubits as the core technology for its quantum computing, Rigetti faces significant competitive pressure due to the same approach taken by IBM and Google, thereby reducing its chances of success in the market.
- Cautious Investment Recommendation: Given Rigetti's market performance and slow technological progress, analysts suggest investors consider other more promising quantum computing companies or related ETFs, as Rigetti's stock is not recommended under current circumstances.
See More
Nvidia Reshapes Quantum Computing Landscape
- Stock Rebound: Following Nvidia's announcement of the new quantum computing model Ising, quantum start-ups saw significant stock increases, with Rigetti rising 13.3%, IonQ up 21%, and D-Wave climbing 22.6%, indicating a renewed market confidence in quantum technology.
- Collaboration Opportunities: Nvidia's Ising model will provide an open-source and AI-powered platform for quantum computing, with IonQ and Rigetti actively partnering with Nvidia, enhancing their technological capabilities and potentially accelerating the adoption of quantum computing.
- Market Outlook: As the world's largest company by market cap, Nvidia's investment in quantum computing signals strong business potential, attracting attention from giants like Alphabet and IBM, which will provide quantum start-ups with greater support and resources in a competitive landscape.
- Technology Integration: Nvidia's Ising model positions AI as the operating system for quantum machines, improving the usability and reliability of quantum computing, thereby enhancing the market competitiveness of quantum start-ups and driving industry growth.
See More
Evaluating Quantum Computing Stocks: Rigetti vs Quantum Computing
- Market Valuation Comparison: Rigetti Computing is valued at $5.5 billion, significantly higher than Quantum Computing's $2 billion, indicating greater market confidence in Rigetti's leadership position in the quantum computing sector.
- Product Comprehensive Advantage: Rigetti offers a more comprehensive product lineup, including quantum processing chips and control systems, and has developed a quantum cloud services platform, making it more appealing to customers and driving its annual revenue to exceed Quantum Computing's by over ten times.
- Technology Application Differences: Quantum Computing focuses on photonics and manufactures quantum computing components, but its business leans more towards component manufacturing rather than complete quantum computers, limiting its market potential and revenue growth.
- Investment Risk Assessment: Although both stocks are speculative and carry high risks, Rigetti is viewed as a more attractive investment option in the current market environment, especially during price dips, which may yield better returns.
See More
