What's Next For Rigetti Stock?

Forbes

03-07-2025

CANADA - 2025/05/09: In this photo illustration, the Rigetti Computing logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Rigetti Computing (NASDAQ: RGTI), a company specializing in quantum computing, experienced a 15% increase on July 2 — a significant movement that concluded nearly a 70% rise over the preceding four months. The recent surge followed Cantor Fitzgerald starting coverage with an Overweight rating and a $15 price target, suggesting a potential further increase of about 19% from current prices.
Rigetti's one-day increase was part of a wider movement in the sector — IONQ (NYSE: IONQ) rose 12%, while D-Wave Quantum (NYSE: QBTS) also benefited — as expectations of Federal Reserve interest rate cuts and a new U.S.–Vietnam trade agreement bolstered risk appetite. Coupled with increased U.S. government investment in quantum technology (recently committing $2.7 billion), the conditions for speculative tech stocks like Rigetti appear more favorable.
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Why Are Investors Paying Attention?
Rigetti develops superconducting quantum processors and provides cloud-based Quantum Computing as a Service (QCaaS). Additionally, it's the creator of Ankaa-3, an 84-qubit system with enhanced fidelity and lower error rates. The strategy is clear: transition from single-chip systems to multi-chip modules, ultimately achieving machines with over 100 qubits—and laying the groundwork for the 336‑Qubit Lyra in 2026. Their strategy is bolstered by advanced fabrication (ABAA) and robust external partnerships, positioning RGTI for significant advancements toward practical quantum computing.
Hype Exceeds Revenue
Here's the reality. Despite the technological achievements, Rigetti remains firmly in research and development mode. CEO Subodh Kulkarni has indicated that commercial demand is still 3–5 years away, and widespread adoption could take a full decade.
This positions Rigetti's valuation as striking:
Nonetheless, the company is well-funded, holding more than $575 million in cash, bolstered by a $350 million equity capital raise and a $250 million partnership with Quanta. It has no debt and a long runway ahead. Significant aspirations.
Competitive Position: Strong but Saturated
Rigetti's end-to-end approach is managing everything from chip design to cloud access — granting it greater flexibility compared to quantum competitors such as IBM, IonQ, and Google. Its partnership with Quanta further enhances commercialization potential. However, progress made by Google's Willow chip and Amazon's Quantum Embark program indicates increasing competition in this sector.
The Final Verdict
Rigetti is among the more intriguing players in the quantum computing market, showcasing credible technology, solid partnerships, and a robust balance sheet. However, investors need to view this for what it is: a high-risk, high-reward speculation in an industry that may take a decade to develop fully.
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