Rigetti Computing Stock Soars 3,220% Amid Hedge Fund Investments, Revenue Declines 43%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Stock Surge: Rigetti Computing's stock price skyrocketed 3,220% after the third quarter, primarily driven by news of investments from three billionaire hedge fund managers, indicating strong market interest in quantum computing.
- Revenue Decline: Despite the significant stock price increase, Rigetti's latest revenue report reveals a 43% decline over the past 12 months, with revenue sitting at just $7.5 million, highlighting challenges in the company's commercialization efforts.
- High Valuation: Rigetti currently trades at over 1,000 times trailing sales, far exceeding peers like Nvidia at 24 times and Palantir at 127 times, raising concerns about the sustainability of its valuation amidst such high expectations for future growth.
- Risk and Opportunity: Although Rigetti's revenue decreased by 18% year-over-year in Q3 2025, the potential for quantum computing to become commercially viable could position the company as a major industry winner, making it suitable for investors with a high-risk tolerance to consider small positions.
RGTI
$23.05+Infinity%1D
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 40.60 USD with a low forecast of 35.00 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.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 24.510
Low
35.00
Averages
40.60
High
51.00
Current: 24.510
Low
35.00
Averages
40.60
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.
