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Forbes
4 days ago
- Business
- Forbes
RGTI Stock: What's Next After An 1,100% Rally?
Rigetti Computing (NASDAQ: RGTI) has emerged as a standout performer in the quantum computing sector, with its stock price surging a remarkable 1,080% over the past twelve months. This extraordinary growth reflects the mounting excitement around quantum computing technology and its potential to transform multiple industries. The fundamental appeal of quantum computing lies in its departure from traditional binary computing systems. While conventional computers process information using bits that exist in either zero or one states, quantum computers utilize qubits that can exist in multiple states simultaneously. This quantum superposition enables these systems to perform complex calculations and process vast datasets by exploring numerous potential outcomes concurrently. The practical applications span diverse sectors including financial modeling, drug discovery, and materials science. However, the technology faces a critical challenge: error rates increase proportionally with system complexity and higher qubit counts. This inherent volatility is characteristic of emerging technologies but represents a significant hurdle for widespread adoption. Despite these challenges, the quantum computing industry has achieved notable milestones. Major technology companies including Google, IBM, and Rigetti have successfully demonstrated scalable quantum systems with dozens of qubits, marking crucial progress toward practical applications. IBM leads the field with its 1,121-qubit Condor processor and ambitious plans to develop 100,000-qubit systems by 2033. Now, for investors looking for potential gains with less volatility, the High Quality portfolio has comfortably outperformed the S&P 500, delivering over 91% returns since inception. Separately, see – Is CRWD Stock Overvalued At $460? Rigetti distinguishes itself in the quantum computing field by utilizing superconducting qubits, specifically tunable transmons. These are controlled by microwave pulses at extremely low temperatures within dilution refrigerators. Their Ankaa-class architecture uses a square lattice of qubits and tunable couplers to enable high-fidelity two-qubit operations. Rigetti's product strategy includes both entry-level and advanced quantum processing units: Rigetti plans to develop a 100-qubit system by the end of the year. These systems prioritize achieving high two-qubit gate fidelity rates exceeding 99%, a crucial factor for practical quantum error correction. Rigetti's technology is accessible through its Quantum Cloud Services platform and partnerships with major cloud providers like Amazon Braket and Microsoft Azure. While Rigetti's technological achievements are impressive, the financial picture reveals the early-stage nature of the quantum computing market. The company generated only $9.2 million in revenue over the last twelve months while reporting an operating loss of $74 million during the same period. These figures underscore that quantum computing remains primarily in the developmental phase rather than widespread commercial deployment. The stock's performance history illustrates the inherent volatility of emerging technology investments. During the 2022 inflation shock, RGTI's value plummeted 96% compared to the S&P 500's peak-to-trough decline of 25.4%. This dramatic differential demonstrates the heightened risk associated with quantum computing stocks during adverse market conditions. Rigetti represents a classic high-risk, high-reward investment opportunity within the quantum computing sector. The company's future trajectory depends heavily on continued technological breakthroughs and effective cost management. Success in scaling quantum computer production could drive significant stock appreciation, making RGTI essentially a bet on both quantum computing's future potential and Rigetti's ability to capture market share. The company has established relationships with notable clients including NASA, Phasecraft, and Standard Chartered, providing some validation of its technology's commercial viability. As quantum computing technology continues advancing, improved accuracy and broader industry adoption should benefit established players like Rigetti. However, investors must weigh these opportunities against substantial risks. The technology remains experimental, competition from well-funded giants like IBM and Google is intense, and the timeline for widespread commercial adoption remains uncertain. There always remains a meaningful risk when investing in stocks that are far from widespread commercial deployment. Consider Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Yahoo
02-03-2025
- Business
- Yahoo
Where Will Rigetti Computing Stock Be in 5 Years?
Major technological breakthroughs can, over time, create trillions in shareholder value. The late 2022 release of OpenAI's ChatGPT is a great example of this phenomenon, as it set off a massive wave of interest in (and investment in) generative artificial intelligence (AI). Ambitious and forward-thinking investors will be keen to bet on technologies that have the potential to be the "next big thing" before they are discovered by the mainstream. Quantum computing looks like one such possible opportunity, and Rigetti Computing (NASDAQ: RGTI) might be a good way to gain exposure to it. Shares of the mid-cap tech company are up by around 400% over the last 12 months. But with quantum computing's ChatGPT moment years or even decades away, is it too early to invest? Let's consider what the next five years could bring for Rigetti. Quantum computing involves creating machines that process data in an entirely different way than traditional computers. Without going into the esoteric details of how they work, these machines can rapidly solve certain unusual categories of problems that would take years -- or even centuries -- for even a powerful classical computer. The technology could theoretically have significant use cases in fields such as materials science or drug discovery because it can dramatically speed up the processing of massive volumes of data, solve previously intractable math problems, and simulate extremely complex real-world processes. According to Boston Consulting Group, quantum computing could create up to $850 billion in economic value annually by 2040. While early movers like Rigetti could benefit from that, there is much debate about when exactly this tech will be ready for prime time, and when companies will develop ways to meaningfully apply it to actual use cases. According to Nvidia CEO Jensen Huang, it could be another 20 years before quantum computers have any practical use. That's so much time that many of the small early movers in the niche will run out of capital and possibly cease to exist before they can develop viable business models. That said, staking out a position in quantum computing is a strategic priority for countries around the world, so some of these businesses may receive a level of government support. Rigetti has established itself on the hardware side of quantum computing, which is similar to the role Nvidia plays in the generative AI industry. In addition to designing and building quantum computers and processors, it has developed a platform called Quantum Cloud Services (QCS), which is designed to offer quantum computing power remotely through the cloud. Rigetti's QCS could save clients the cost and complexity of building and operating quantum computers in-house. It also allows them to access the tech's exponentially greater processing power via their traditional hardware. But while this all sounds super promising, Rigetti's current financial situation leaves much to be desired. Its revenue fell 23% year over year to just $2.4 million in the third quarter, while operating losses stood at $17.3 million -- seven times more than sales. To say Rigetti has no clear pathway to profitability seems like an understatement. The company is burning through cash at an alarming rate, and without consistent top-line growth, it's hard to see how it could change that trend. (It's scheduled to release its Q4 results on March 5.) Research and development accounted for 69% ($12.8 million) of Rigetti's $18.6 million in operating expenses. This dynamic puts Rigetti's management in an awkward situation because it can't cut this spending without risking falling behind well-capitalized rivals like Alphabet and Nvidia, which are also investing in quantum computing. Quantum computing, like generative AI, has the potential to be revolutionary, and perhaps create boatloads of shareholder value. However, investors should be careful not to jump the gun. Over the next five years, expect Rigetti Computing to burn through hundreds of millions of dollars, and do not expect to see it pivot toward profitability. It will likely rely on equity dilution to fund its operations -- a strategy that is often bad for a company's stock price. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rigetti Computing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $765,576!* Now, it's worth noting Stock Advisor's total average return is 890% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of February 24, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy. Where Will Rigetti Computing Stock Be in 5 Years? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
13-02-2025
- Business
- Globe and Mail
2 Stocks to Buy ASAP as Scientists Use Quantum Computing for Teleportation
According to an article in The Independent, researchers at Oxford University have achieved a significant breakthrough in quantum computing. They have developed a scalable quantum supercomputer capable of quantum teleportation. The advancement addresses the scalability challenge that has hindered quantum computing's practical implementation. This breakthrough involves quantum teleportation of logical gates — the essential components of algorithms — across a network link. While quantum teleportation isn't new, this is the first successful demonstration of teleporting fundamental computing elements across a network. The article stated that Dougal Main led the Oxford team, demonstrating how quantum teleportation can create interactions between distant systems. Main and other researchers manipulated these interactions and performed logical quantum gates between qubits located in separate quantum computers. The experiment effectively connected distinct quantum processors into a unified system. The research, published in Nature under the title 'Distributed quantum computing across an optical network link,' demonstrates that network-distributed quantum information processing is achievable with existing technology. Given the optimism surrounding this disruptive space, here are two quantum computing stocks you can consider buying right now. Is Rigetti Computing a Good Buy Right Now? With a market cap of $2.25 billion, Rigetti Computing (RGTI) builds quantum computers and the superconducting quantum processors that power them. RGTI integrates these machines into various public, private, or hybrid clouds through the Quantum Cloud Services platform. Rigetti Computing has announced ambitious plans for 2025, including the mid-year release of a 36-qubit system based on 49-qubit chips, targeting a 99.5% median 2-qubit gate fidelity. By the end of 2025, it aims to launch a 100-plus-qubit system with similar fidelity levels, followed by the development of a 336-qubit system. Rigetti's progress includes developing the 84-qubit Ankaa 3 system, which targets 99% plus median 2-qubit gate fidelity by the end of 2024. Its superconducting qubits achieve gate speeds of 60-80 nanoseconds, significantly faster than competing technologies. In the third quarter of 2024, Rigetti reported revenues of $2.4 million, down from $3.1 million in the year-ago period. Its gross margins decreased to 51% from 73% over the last 12 months. The company's net loss improved to $14.8 million ($0.08 per share) compared to $22.2 million ($0.17 per share) last year. As of Sept. 30, 2024, Rigetti had $92.6 million in cash and investments and an additional $12 million raised through stock sales. Thus, It expects its funds to sustain operations for the next 12 months. Out of the five analysts covering RGTI stock, four recommend 'Strong Buy,' and one recommends 'Moderate Buy.' The average target price is $9.10, down 20% from current prices. Is Alphabet Stock Undervalued? Alphabet (GOOG) (GOOGL), Google's parent company, is positioned to lead the quantum computing space, given that Willow, its new quantum processor, achieved two significant milestones recently. First, Willow has made progress in reducing quantum bit (qubit) errors, a challenge that has hindered quantum computing for several decades. By scaling up the number of qubits, the processor reduced errors exponentially. Second, Willow completed a benchmark computation in under five minutes, which would have taken traditional supercomputers billions of years to process. According to Jensen Huang, CEO of Nvidia (NVDA), practical applications of quantum computing might be decades away. However, Alphabet's strong financial position and vast resources should allow it to gain a first-mover advantage in this disruptive segment. According to a research report from BCG, the quantum computing market is projected to reach $850 billion by 2040. This rapidly expanding addressable market will allow Alphabet to diversify its revenue streams further over the next decade. With $23.5 billion in cash, Alphabet generated $72.8 billion in free cash flow in 2024, which suggests that the Big Tech giant can easily sustain investments in quantum research without immediate pressure for commercial returns. Out of the 50 analysts covering GOOGL stock, 38 recommend 'Strong Buy,' three recommend 'Moderate Buy,' and nine recommend 'Hold.' The average target price for GOOGL stock is $218.75, indicating upside potential of 20% from current levels.
