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Quantum computing, a transformative leap in technology, harnesses the principles of quantum mechanics to solve problems far beyond the reach of classical computers. In today’s digital world, where data and computational prowess dictate innovation, this groundbreaking field promises to redefine industries ranging from cryptography to pharmaceuticals.
At the forefront of this revolution stands Rigetti Computing (RGTI). Recently, B. Riley analyst Craig Ellis amplified market chatter by more than doubling his price target on RGTI to $8.50, reaffirming a “Buy” rating. With the stock skyrocketing triple digits over the past year, let’s dive deeper into this quantum disruptor and its meteoric rise.
About Rigetti Computing Stock
California-based tech firm Rigetti Computing (RGTI), founded in 2013, blends quantum and classical computing. Known for crafting quantum processors, Rigetti offers its cutting-edge tech via platforms like Amazon Braket and Microsoft Azure. With a market capitalization of $1.9 billion, Rigetti is a trailblazer in the quantum era.
RGTI soared like a rocket in 2024, jumping 1,073% over the past 52 weeks from a September low of $0.66 to an astonishing $21.42 by January 2025. The past three months alone saw a 825% climb.
But as quickly as it soared, Rigetti stock plummeted. After peaking, a sudden 45.4% drop on Jan. 8 sent it back to the $10 mark. The sharp decline followed Nvidia (NVDA) CEO Jensen Huang’s remarks, leaving RGTI trading over 50% below its 52-week high - proof that the thrill of rapid growth can flip in an instant.
Rigetti Computing Rises After Q3 Earnings
Rigetti Computing’s Q3 earnings results came on Nov. 12, and the stock rose 14.1% in the subsequent trading session. The numbers were a mixed bag. Total revenue reached $2.4 million, but the company reported an operating loss of $17.3 million and a net loss of $14.8 million, or $0.08 per share, just as analysts predicted. With expenses climbing to $18.6 million, Rigetti is burning through cash, yet it still holds $92.6 million in reserves as of September.
CEO Subodh Kulkarni emphasized that the focus is on advancing quantum tech, not just racking up sales. Investors drawn to quantum’s potential might have been hoping for more immediate results.
Meanwhile, Rigetti continues pushing forward, unveiling a modular system architecture, with plans for a 36-qubit system by mid-2025 and a 100-qubit system by year’s end. The road ahead looks uncertain, but the quantum frontier remains ripe with possibilities.
Analysts tracking Rigetti Computing anticipate the company’s losses to narrow by 35.9% year-over-year to $0.34 per share in fiscal 2024, and further narrow by 17.7% to $0.28 per share in fiscal 2025.
What Do Analysts Expect for Rigetti Computing Stock?
Quantum computing, hailed as the frontier of modern technology, holds the promise to outpace classical computing in solving intricate problems across industries. The recent optimism surrounding Rigetti Computing reflects the market’s growing belief in the sector’s commercial viability. This optimism has driven B. Riley analyst Craig Ellis to more than double his price target for RGTI stock to $8.50, reaffirming his "Buy" rating.
Ellis’ bullish stance stems from Rigetti’s strides in scaling quantum systems to tackle high-value workloads inaccessible to traditional technologies. Investor confidence surged following Rigetti’s successful equity capital raises in late 2024, which eased prior cash flow concerns and fortified its growth trajectory.
Ellis also emphasized Rigetti’s potential to lead government-related quantum computing initiatives, a testament to its strategic positioning. While technical challenges and delayed profitability loom, rising interest in frontier technologies beyond AI signals a promising horizon. Rigetti’s resurgence underscores its potential to dominate the evolving quantum landscape.
Analysts are clearly optimistic about RGTI, with the stock having a "Strong Buy" rating overall. Four analysts have a "Strong Buy” rating, and one suggests a “Moderate Buy.”
Although the stock trades above the average analyst price target of $6.10, the Street-high target of $12 suggests the quantum computing stock could rally as much as 22.1%.
