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It seems the next step in the technological revolution after artificial intelligence (AI) is quantum computing. An advanced realm of technology most familiar to the general public thanks to science-fiction movies, quantum computing has applications in various domains. It offers solutions across cryptography, drug discovery and material science, AI and machine learning, and climate modelling and sustainability, to name a few.
What makes quantum computing so powerful is the use of “qubits.” Qubits are special because they can represent 0, 1, or both simultaneously, thanks to a phenomenon called superposition. This allows quantum computers to explore many possibilities simultaneously, making them incredibly powerful for solving certain types of problems.
Notably, consulting major McKinsey believes that the technology could create a collective value of about $2 trillion by 2035 across industries including chemicals, life sciences, finance, and mobility. Big names in the tech world are increasingly directing attention towards quantum computing, with Google (GOOG), Nvidia (NVDA) and Microsoft (MSFT) in particular making noteworthy bets.
Microsoft co-founder Bill Gates’ bullishness about quantum computing is worth highlighting. On a recent podcast, he opined, “There is the possibility in the next three to five years that one of these techniques would get enough true logical Qubits to solve some very tough problems. And Microsoft is a competitor in that space.” He had earlier said that Microsoft was building “the world’s most powerful quantum machine.”
This bodes well for one of the foremost names in the quantum computing world.
About Rigetti Computing Stock
Founded in 2013 by Chad Rigetti, a former International Business Machines (IBM) researcher, Rigetti Computing is a prominent player in the quantum computing industry, focusing on developing and integrating quantum hardware and software solutions. The company specializes in building quantum computers and the superconducting quantum processors that power them. Its market capitalization currently stands at $2.7 billion.
Over the past year, RGTI stock has witnessed a quantum leap of 991%.
Rigetti Is Not Yet Profitable
Rigetti is yet to be profitable as the results for the most recent quarter saw the company reporting a miss on both revenue and earnings.
Total revenue of $2.4 million represented a decline of 23.4% from the prior year. However, losses narrowed to $0.08 per share from $0.17 per share in the year-ago period.
Net cash used in operating activities came in at $42.1 million compared to $38.2 million for the nine months that ended Sept. 30 as the company closed the quarter with a cash balance of $20.3 million. This was much higher than Rigetti’s short-term debt levels of $13.4 million. Rigetti’s CEO has emphasized that investors should be focusing on its research and tech development, instead of on metrics like revenue growth.
Exciting Tailwinds
Rigetti Computing’s competitive advantage lies in its proprietary technology, strategic partnerships, and its in-house fabrication facility, Fab-1, which enables the company to develop and manufacture its own quantum chips. A key milestone in Rigetti’s journey was the creation of the world’s first multi-chip quantum processor, a foundational step toward scalable quantum computing. The company generates revenue primarily through the sale of its quantum processing units (QPUs) and its cloud-based Quantum Computing as a Service (QCaaS) platform, which allows enterprises and researchers to remotely access its quantum computing power.
A favorable regulatory environment under President Donald Trump could provide a supportive backdrop for Rigetti’s growth. Reduced regulatory constraints may accelerate innovation within the quantum computing industry, potentially allowing Rigetti and its peers to advance their technological developments more rapidly.
Rigetti’s partnership with Quantum Machines represents another strategic move aimed at tackling a core challenge in quantum computing — qubit calibration. By incorporating AI-driven quantum calibration techniques, this collaboration seeks to enhance the efficiency and reliability of quantum systems, addressing a critical bottleneck in the field.
With over a decade of experience in the emerging quantum computing sector, Rigetti continues to push technological boundaries. On Dec. 23, 2024, the company launched its 84-qubit Ankaa-3 quantum computer, a significant upgrade over previous models. Ankaa-3 introduces key hardware improvements that enhance computational performance, reinforcing Rigetti’s competitive standing and positioning it to attract new research and commercial partnerships.
Looking ahead, Rigetti has outlined an aggressive roadmap for 2025, with a focus on high-fidelity quantum computing. By mid-2025, the company plans to deploy a cluster of four interconnected 9-qubit chips, targeting a two-qubit gate fidelity above 99.5%. Later in the year, Rigetti aims to release a 100-plus qubit system with sustained 99.5% two-qubit fidelity, a critical threshold for practical quantum applications. If successful, these advancements could cement Rigetti’s position as a leader in the quantum computing industry, unlocking commercial opportunities and driving long-term financial growth.
Analyst Opinions on RGTI
Analysts have attributed a rating of “Strong Buy” for the stock with a mean target price that has already been surpassed and a high target price of $17 which denotes upside potential of about 23% from current levels. Out of five analysts covering the stock, four have a “Strong Buy” rating and one has a “Moderate Buy” rating.
