Rigetti Computing Faces Major Challenges in Quantum Race
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
0mins
Source: Fool
- 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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RGTI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 18.680
Low
30.00
Averages
39.75
High
51.00
Current: 18.680
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.
Intense Competition Among Quantum Computing Firms
- Changing Competitive Landscape: Companies like IonQ, IBM, D-Wave, Rigetti, and Quantum Computing Inc. are vying for market attention in quantum computing, indicating an intensifying competition that could influence investor decisions.
- Dual Challenge of Technology and Funding: While technological advancements are crucial, the outcome of the race to 2028 may increasingly depend on cash runway and dilution risks, making financial management a key factor for survival.
- Market Dynamics Analysis: Market prices as of June 24, 2026, reveal fluctuations in quantum computing stocks, reflecting varying investor expectations about future technological developments, which may lead to a reassessment of these companies' valuations.
- Investor Focus: With technology still maturing, investors need to pay close attention to the financial health of these companies to determine which ones can survive and achieve profitability in the future competition.
See More
Intense Competition Among Quantum Computing Firms
- Competitive Landscape: Companies like IonQ, IBM, D-Wave, Rigetti, and Quantum Computing Inc. are vying for attention in the quantum computing sector, indicating an intensifying competition that could influence investor decisions and market dynamics.
- Cash Flow and Dilution Risks: As the race to 2028 unfolds, the sustainability of cash flow and the risk of equity dilution will be critical factors determining which companies survive, thereby impacting potential investor returns.
- Investment Recommendations: While IBM was not included in the current list of top investment stocks, the other 10 stocks recommended by the analyst team could yield substantial returns in the coming years, reflecting a cautious market sentiment towards the quantum computing sector.
- Market Performance Comparison: With Stock Advisor's total average return at 902%, significantly surpassing the S&P 500's 209%, it highlights the higher risks and uncertainties that quantum computing companies may face when selecting investments.
See More
Insider Selling Signals Caution in Quantum Computing Stocks
- Insider Trading Warning: Since June 18, 2024, executives at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold approximately $857 million in stock, indicating concerns about future market prospects that could undermine investor confidence.
- Net Selling Figures: IonQ reported a net selling of $454.1 million, Rigetti Computing $71.5 million, and D-Wave Quantum $331.1 million, reflecting a pessimistic outlook from insiders regarding the companies' future performance, which may lead to stock price volatility.
- Lack of Buying Signals: Over the past two years, insider purchases have been minimal, with IonQ at $2.25 million, D-Wave Quantum at just $1,795, and Rigetti with no purchases, indicating a lack of confidence among executives that could negatively impact market sentiment.
- Valuation Bubble Risk: While quantum computing companies show rapid growth potential, their price-to-sales ratios are in bubble territory, and historical data suggests that investors often overestimate the speed of technology adoption, potentially increasing future investment risks.
See More
Insider Trading Warning for Quantum Computing Stocks
- Insider Trading Trends: Over the past two years, insiders at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold nearly $857 million in stock, indicating a lack of confidence in the companies' futures, which may affect investor sentiment towards these highly valued stocks.
- Scarcity of Insider Buying: While IonQ has seen approximately $2.25 million in insider purchases, D-Wave Quantum has only recorded $1,795, and Rigetti has had no insider purchases at all, reflecting a cautious attitude among executives regarding the companies' prospects.
- Market Valuation Bubble: The price-to-sales ratios of quantum computing stocks are firmly in bubble territory, and although these companies have the potential for rapid growth in the coming years, the market often overestimates the speed of technology adoption, posing risks for investors.
- Investor Caution: Given the lack of insider buying, everyday investors should carefully consider investing in IonQ, especially since the Motley Fool's analyst team has identified ten other stocks with potential, excluding IonQ from their recommendations.
See More
Rigetti Computing Stock Volatility Analysis
- Stock Price Plunge: Rigetti Computing's stock fell sharply by 9.2% by 2:55 p.m. ET on Wednesday, reflecting the high volatility in the quantum computing market, despite earlier gains from government support.
- Options Trading Surge: According to StreetInsider.com, the call options purchased on Tuesday outnumbered puts by 10.4 to 1, indicating strong bullish sentiment among investors, but this may have led to excessive speculation in the short term.
- Government Support Outlook: President Trump's signed order aims to build a powerful quantum computer by 2029, presenting potential market opportunities for Rigetti; however, analysts warn that profitability may not be achieved until 2031, adding uncertainty to investments.
- Market Volatility Risks: The absence of negative news driving the stock's decline suggests that day traders opted to cash out due to a lack of further positive developments, highlighting the high-risk nature of quantum computing stocks that investors should approach with caution.
See More
U.S. Accelerates Quantum Computing Strategy with New Directives
- Quantum Computing Goals: The U.S. government has set a target to develop a quantum computer tailored for scientific research within two years and to roll out quantum sensors and networks within five years, aiming to enhance national research capabilities and technological competitiveness.
- Cybersecurity Upgrade: The second directive mandates federal departments to complete a full migration to quantum-resistant encryption protocols for high-value targets by 2031, addressing future national security threats and ensuring the security of critical data.
- Funding Support: This strategy is backed by a $2 billion government allocation aimed at strengthening local supply chains through collaboration with major tech companies and research labs, facilitating the commercialization of quantum technology.
- Positive Market Reaction: Following Trump's signing of the directives, shares of IONQ, QUBT, and IBM rose between 4% and 6% in after-hours trading, reflecting market optimism about the future developments in the quantum computing sector.
See More
Intense Competition Among Quantum Computing Firms
- Changing Competitive Landscape: Companies like IonQ, IBM, D-Wave, Rigetti, and Quantum Computing Inc. are vying for market attention in quantum computing, indicating an intensifying competition that could influence investor decisions.
- Dual Challenge of Technology and Funding: While technological advancements are crucial, the outcome of the race to 2028 may increasingly depend on cash runway and dilution risks, making financial management a key factor for survival.
- Market Dynamics Analysis: Market prices as of June 24, 2026, reveal fluctuations in quantum computing stocks, reflecting varying investor expectations about future technological developments, which may lead to a reassessment of these companies' valuations.
- Investor Focus: With technology still maturing, investors need to pay close attention to the financial health of these companies to determine which ones can survive and achieve profitability in the future competition.
See More
Intense Competition Among Quantum Computing Firms
- Competitive Landscape: Companies like IonQ, IBM, D-Wave, Rigetti, and Quantum Computing Inc. are vying for attention in the quantum computing sector, indicating an intensifying competition that could influence investor decisions and market dynamics.
- Cash Flow and Dilution Risks: As the race to 2028 unfolds, the sustainability of cash flow and the risk of equity dilution will be critical factors determining which companies survive, thereby impacting potential investor returns.
- Investment Recommendations: While IBM was not included in the current list of top investment stocks, the other 10 stocks recommended by the analyst team could yield substantial returns in the coming years, reflecting a cautious market sentiment towards the quantum computing sector.
- Market Performance Comparison: With Stock Advisor's total average return at 902%, significantly surpassing the S&P 500's 209%, it highlights the higher risks and uncertainties that quantum computing companies may face when selecting investments.
See More
Insider Selling Signals Caution in Quantum Computing Stocks
- Insider Trading Warning: Since June 18, 2024, executives at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold approximately $857 million in stock, indicating concerns about future market prospects that could undermine investor confidence.
- Net Selling Figures: IonQ reported a net selling of $454.1 million, Rigetti Computing $71.5 million, and D-Wave Quantum $331.1 million, reflecting a pessimistic outlook from insiders regarding the companies' future performance, which may lead to stock price volatility.
- Lack of Buying Signals: Over the past two years, insider purchases have been minimal, with IonQ at $2.25 million, D-Wave Quantum at just $1,795, and Rigetti with no purchases, indicating a lack of confidence among executives that could negatively impact market sentiment.
- Valuation Bubble Risk: While quantum computing companies show rapid growth potential, their price-to-sales ratios are in bubble territory, and historical data suggests that investors often overestimate the speed of technology adoption, potentially increasing future investment risks.
See More
Insider Trading Warning for Quantum Computing Stocks
- Insider Trading Trends: Over the past two years, insiders at IonQ, Rigetti Computing, and D-Wave Quantum have collectively sold nearly $857 million in stock, indicating a lack of confidence in the companies' futures, which may affect investor sentiment towards these highly valued stocks.
- Scarcity of Insider Buying: While IonQ has seen approximately $2.25 million in insider purchases, D-Wave Quantum has only recorded $1,795, and Rigetti has had no insider purchases at all, reflecting a cautious attitude among executives regarding the companies' prospects.
- Market Valuation Bubble: The price-to-sales ratios of quantum computing stocks are firmly in bubble territory, and although these companies have the potential for rapid growth in the coming years, the market often overestimates the speed of technology adoption, posing risks for investors.
- Investor Caution: Given the lack of insider buying, everyday investors should carefully consider investing in IonQ, especially since the Motley Fool's analyst team has identified ten other stocks with potential, excluding IonQ from their recommendations.
See More
Rigetti Computing Stock Volatility Analysis
- Stock Price Plunge: Rigetti Computing's stock fell sharply by 9.2% by 2:55 p.m. ET on Wednesday, reflecting the high volatility in the quantum computing market, despite earlier gains from government support.
- Options Trading Surge: According to StreetInsider.com, the call options purchased on Tuesday outnumbered puts by 10.4 to 1, indicating strong bullish sentiment among investors, but this may have led to excessive speculation in the short term.
- Government Support Outlook: President Trump's signed order aims to build a powerful quantum computer by 2029, presenting potential market opportunities for Rigetti; however, analysts warn that profitability may not be achieved until 2031, adding uncertainty to investments.
- Market Volatility Risks: The absence of negative news driving the stock's decline suggests that day traders opted to cash out due to a lack of further positive developments, highlighting the high-risk nature of quantum computing stocks that investors should approach with caution.
See More
U.S. Accelerates Quantum Computing Strategy with New Directives
- Quantum Computing Goals: The U.S. government has set a target to develop a quantum computer tailored for scientific research within two years and to roll out quantum sensors and networks within five years, aiming to enhance national research capabilities and technological competitiveness.
- Cybersecurity Upgrade: The second directive mandates federal departments to complete a full migration to quantum-resistant encryption protocols for high-value targets by 2031, addressing future national security threats and ensuring the security of critical data.
- Funding Support: This strategy is backed by a $2 billion government allocation aimed at strengthening local supply chains through collaboration with major tech companies and research labs, facilitating the commercialization of quantum technology.
- Positive Market Reaction: Following Trump's signing of the directives, shares of IONQ, QUBT, and IBM rose between 4% and 6% in after-hours trading, reflecting market optimism about the future developments in the quantum computing sector.
See More
