logo
Rigetti Computing Stock Faces Heat From Chinese Quantum Startup. Is RGTI a Buy or Sell?

Rigetti Computing Stock Faces Heat From Chinese Quantum Startup. Is RGTI a Buy or Sell?

Globe and Mail18-02-2025

Rigetti Computing (RGTI) is down more than 10% on Tuesday following reports that a China-based startup Origin Quantum has surpassed 20 million in remote visits to its prototype machine.
The company's third-generation 'Wukong' is a 72-qubit quantum computer with fully independent intellectual property.
Origin Quantum is already being compared to DeepSeek, the Chinese artificial intelligence (AI) startup that erased $1 trillion from the U.S. stock market with the launch of its low-cost, super-efficient AI model in late January.
Other quantum stocks, including D-Wave (QBTS) and IonQ (IONQ) are also down significantly on Tuesday.
Origin Quantum Is Not a Threat to Rigetti Computing
While the Origin Quantum development is drawing significant attention on Tuesday, there's reason to believe it's not an immediate threat to Rigetti Computing stock.
For starters, the China-based startup is not a publicly listed company, which means it's not in direct competition for investor capital with the likes of RGTI. Plus, the DeepSeek episode has already taught us that startups being posed as serious competition to established names often prove to be more hype than substance.
This is evidenced in the swift recovery in Nvidia (NVDA) stock following the short-lived DeepSeek-driven selloff in the final week of January.
RGTI Is Ahead of Origin Quantum in Technology
Shares of Rigetti Computing may be worth buying on the weakness also because Origin Quantum's prototype machine that made headlines today is a 72-qubit quantum computer.
In comparison, RGTI has already launched an 84-qubit Ankaa-3 system, which means it's already ahead of the Chinese startup in terms of technology. Moreover, Rigetti generated $2.4 million in revenue in its latest reported quarter. In comparison, Origin Quantum is a pre-revenue company at the time of writing.
Finally, titans, including Nvidia and Microsoft (MSFT), have partnered with Rigetti Computing, which, for investors, mean a huge mark of confidence in its future prospects.
That's why Rigetti Computing stock is up more than 50% versus its recent low even after today's decline.
Should You Buy the Dip in Rigetti Computing Stock?
All in all, the Origin Quantum news on Tuesday does rather little to disrupt the long-term bullish momentum in Rigetti Computing stock.
Wall Street currently has a consensus 'Strong Buy' rating on RGTI shares. While the mean target of $11 suggests potential upside of 5% from current levels, the high target of $17 signals the possibility of a 63% rally from here.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Global economy on track for worst decade since 1960s, World Bank warns
Global economy on track for worst decade since 1960s, World Bank warns

CTV News

timean hour ago

  • CTV News

Global economy on track for worst decade since 1960s, World Bank warns

Containers at the Port of Ningbo-Zhoushan in China's eastern Zhejiang Province in May. (Hector Retamal/AFP/Getty Images via CNN Newsource) Global economic growth is on track for its weakest decade since the 1960s, according to a new analysis by the World Bank, which cites U.S. President Donald Trump's trade war as a major factor weighing on economies worldwide. The World Bank expects Trump's barrage of new tariffs on America's trading partners to whittle down global economic growth to its lowest level since the 2008 financial crisis when discounting worldwide recessions, according to a report released Tuesday. While the Washington, D.C.-based institution does not expect another global recession due to the tariffs, it said in a press release that — should its projections for global growth come to pass this year and next — 'average global growth in the first seven years of the 2020s will be the slowest of any decade since the 1960s.' In its report, the World Bank downgraded its expectation for global GDP growth this year to 2.3% from the 2.7% it had forecast in January. That's based on the assumption that tariffs worldwide will remain at their late-May levels. That puts the world economy on course for its weakest pace of growth in 17 years, excluding two global recessions — the first in 2009, following the financial crisis; and the second in 2020, the first year of the coronavirus pandemic. Those years saw global economic growth contract by 1.3% and 2.9%, respectively, according to World Bank data. 'The sharp increase in tariffs and the ensuing uncertainty are contributing to a broad-based growth slowdown and deteriorating prospects in most of the world's economies,' the institution said in the report. It added that the 'turmoil' unleashed by 'heightened trade tensions' had prompted it to cut its growth forecasts for almost 70% of economies worldwide — across all regions and income groups. The anticipated slowdown in developing economies will also be influenced by long-running trends such as ballooning government debt levels, the institution noted. Fitch Ratings said Tuesday that it had downgraded its outlook for global government bonds this year from a 'neutral' status to 'deteriorating,' citing the impact of tariff hikes and trade policy uncertainty. 'The escalation in the global trade war, uncertainty over the endpoint for tariffs and their impact on global trade volumes, supply chains, investment and international relations is a significant adverse global economic shock,' the credit rating agency said in a report. Since retaking office in January, Trump has hiked import duties on most of America's trading partners and on key goods, including cars and steel. A round of punishingly high 'reciprocal tariffs' is set to whack many of America's trading partners from July 9 unless they can strike a deal with Washington — and despite the levies hitting a legal stumbling block last month. Fresh trade negotiations between the United States and China kicked off in London on Monday, and continued on Tuesday, with both sides attempting to preserve a fragile truce brokered last month. Despite ongoing talks, the tariffs, their erratic implementation and the unpredictability that both have injected into the global economy, are weighing on many businesses and consumers.

Market Analysis: June 10th, 2025
Market Analysis: June 10th, 2025

Globe and Mail

time2 hours ago

  • Globe and Mail

Market Analysis: June 10th, 2025

Global Markets Canadian Markets Canada's main stock index traded flat on Tuesday, as gains in the energy sector—spurred by higher oil prices—were offset by growing signs of economic strain. Analysts point to stress levels among Canadian businesses not seen since the 2009 financial crisis, suggesting that elevated borrowing costs and slowing consumer demand are beginning to take a toll. Despite the broader market's pause, energy stocks gained momentum, reflecting optimism around commodity prices. BMO's head of exchange-traded funds (ETFs) commented on the strategic potential of gold in the current environment. 'It may look overbought at these levels,' the strategist noted, 'but there's a compelling case for including gold as a portfolio hedge, especially amid economic uncertainty and geopolitical tension.' American Markets American stock markets were mixed, with investors taking a cautious stance as they awaited the outcome of the second day of trade negotiations between the United States and China. Central to the discussions is U.S. access to China's rare earth minerals—critical components in electronics and defense industries. While both sides are signaling a willingness to engage, negotiators are facing complex and sensitive issues that have deepened the rift between the two economic giants over the past year. Tech investors were also watching closely as Apple concluded its annual Worldwide Developers Conference (WWDC). The event, widely anticipated for artificial intelligence (AI) breakthroughs, underwhelmed in that regard. However, Apple did unveil a major redesign of its software—its most significant interface overhaul in over a decade—potentially laying the groundwork for future AI integrations. European Markets European markets also traded mixed, with some indices weighed down by financials—particularly Swiss banking giant UBS, which faced renewed scrutiny and profit-taking pressure. Inflation in Ukraine surged to 15.9% year-over-year in May, primarily driven by rising food prices. The Bank of Spain revised its growth forecast slightly upward, expecting GDP expansion of between 0.5% and 0.6% in the second quarter. In the UK, economic data painted a cooling labor market. Pay growth decelerated sharply, and unemployment rose to its highest level in nearly four years in the three months to April. This combination of softening wage pressures and rising joblessness strengthens the case for further interest rate cuts by the Bank of England. In response, the British pound (GBP) faced sharp selling pressure across global currency markets, with traders pricing in a more dovish central bank outlook. Corporate News Air Products U.S.-based gas and chemical firm interested in DIG Airgas. ArcBest Corporation BoFA Global Research raises target price to $74 from $63 due to momentum with core customers. Avidity Biosciences Inc Barclays raises target price to $59 from $57 after favorable clinical and regulatory news. Brookfield Asset Management Ltd & KKR & Co Inc Potential bidders for Macquarie's DIG Airgas, valued up to $3.6 billion. Also attracting interest from Air Liquide, Air Products, I Squared Capital, and Stonepeak. Cameco Corp Scotiabank raises target price to C$93 from C$88, citing improved financial performance. Carvana Co BoFA Global Research raises target price to $375 from $325, expecting benefit from used car market shift. Enghouse Systems Ltd CIBC cuts target price to C$25.50 from C$30 due to economic volatility impacting client spending. Hewlett Packard Enterprise Inc & Nvidia Corp Partnering with Germany's Leibniz Centre to build 'Blue Lion' supercomputer using Nvidia's Vera Rubin chips. Nvidia also unveils Europe's fastest supercomputer 'Jupiter' and a new climate AI model. International Business Machines Corp (IBM) Plans to have a practical quantum computer by 2029 and a larger system by 2033. Building the 'Starling' quantum computer with 200 logical qubits. Merck & Co Inc FDA approves RSV preventive antibody Enflonsia for infants. Will be priced at $556 per dose. Meta Platforms Inc CEO Mark Zuckerberg forming a new AGI team, planning major investments including a deal with Scale AI. Morgan Stanley Marketing $5B in bonds and loans for Elon Musk's xAI. Floating-rate and fixed-rate options offered. Oracle Corporation Morgan Stanley raises target price to $175 from $160, citing strong expected Q4 bookings. Paramount Global & Roblox Corp Paramount CFO Naveen Chopra to join Roblox. Paramount merger with Skydance pending FCC approval. Roblox gains Gen Z engagement and diversifies into advertising. Recursion Pharmaceuticals Inc Laying off ~20% of staff to cut costs and focus on rare diseases and cancer drugs. Cash runway extended to late 2027. Southern First Bancshares Inc Piper Sandler initiates coverage with $43 target, citing benefits from interest rate trends. T-Mobile US Inc CEO Mike Sievert may step down before contract ends; COO Srini Gopalan is a leading candidate to succeed him. United Natural Foods Inc Took systems offline after detecting unauthorized network activity. Temporary disruptions expected. Walt Disney Co Completed Hulu acquisition, paying NBCUniversal an additional $438.7M. Now holds full control of Hulu.

Accurate Network Services Acquires Shift Support, Expanding IT Capabilities and Client Reach
Accurate Network Services Acquires Shift Support, Expanding IT Capabilities and Client Reach

Cision Canada

time2 hours ago

  • Cision Canada

Accurate Network Services Acquires Shift Support, Expanding IT Capabilities and Client Reach

EDMONTON, AB, June 10, 2025 /CNW/ - Accurate Network Services, a leading provider of IT support and cybersecurity solutions, is pleased to announce the acquisition of Shift Support, an Edmonton-based IT services company known for its strong client relationships and personalized service. The acquisition, finalized this month, brings together two values-aligned organizations dedicated to doing IT differently. Together, they will focus on proactive support, long-term partnerships, and measurable business impact for clients. , Founder and President of Accurate Network Services, shared his enthusiasm about the milestone: "Bringing Shift Support into the Accurate family is about more than growth—it's about deepening our promise to clients. Shift's culture of proactive service and their reputation for solving problems before they happen mirror the values we built Accurate on 18 years ago. Together, we're combining Shift's nimble, client-first approach with Accurate's scale, security expertise, and 24/7 support. The result is a stronger partner who can move faster, protect clients better, and keep their businesses running without interruption. We're excited for this next chapter and grateful to the Shift team and clients for trusting us to help them succeed." Founded nearly two decades ago, Accurate has grown from a solo venture into a 60-person team serving clients across Western Canada. The addition of Shift Support will expand Accurate's presence not only in Edmonton and Alberta but Canada-wide and bring in a talented team of professionals who share the same customer-first mindset. Mike Alexander, Co-Founder of Shift Support, added: "The acquisition of Shift represents an exciting step forward - one built on a shared commitment to client success, a strong service philosophy, and a belief in doing IT differently. By joining forces with Accurate Networks, we're creating new growth opportunities for our team and expanding our ability to serve clients with even greater depth, scale, and expertise. Shift and Accurate Networks are aligned around values that matter: personalized support, long-term relationships, and a proactive approach to IT. Our clients can expect continuity where it counts, and improvements where it makes a difference. We're incredibly excited about this next chapter - one that brings greater resources, more capabilities, and a renewed commitment to delivering exceptional service, every step of the way." As part of the transition, clients can expect continuity in the people and services they've come to trust, along with new benefits such as: Enhanced phone and after-hours support Additional project resources for faster turnaround Access to Accurate's mature cybersecurity department A commitment to regular client feedback and personalized service evolution Accurate Network Services is already reaching out to Shift Support clients to learn what matters most to them during this integration and ensure a seamless experience throughout the process. About Accurate Network Services Accurate is a Canadian IT services provider offering managed IT, cybersecurity, and project services to organizations of all sizes. Founded in 2006, Accurate is driven by a mission to better the lives of those they work with—clients, team members, and communities alike.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store