Avoid Rigetti and D-Wave Quantum Stocks as Revenue Declines Raise Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Rigetti Revenue Decline: Rigetti Computing reported $5.2 million in revenue for the first three quarters of 2025, a 39% decrease year-over-year, indicating weak growth in its quantum computing business, and it is likely to miss analyst expectations of $7.6 million in Q1 2026, putting pressure on its stock price.
- Sales Delay Impact: Although Rigetti announced two sales of quantum computing systems in October 2025 that would generate $5.7 million in revenue, this income will not be recognized until the first half of 2026, meaning short-term financial performance will not improve, raising market concerns about its future.
- D-Wave Sales Weakness: D-Wave Quantum's total revenue for the first three quarters of 2025 was less than $22 million, despite a more than threefold increase in sales, which is insufficient to support its $9.7 billion market capitalization, highlighting its fragile profitability.
- Pessimistic Profit Outlook: Analysts generally agree that D-Wave is unlikely to achieve profitability before 2030, and given its current market valuation, this indicates significant investment risks, suggesting investors should remain cautious.
Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RGTI is 39.75 USD with a low forecast of 30.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 24.960
Low
30.00
Averages
39.75
High
51.00
Current: 24.960
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.
