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In a new interview with Yahoo Finance, Rigetti Computing (RGTI) CEO Subodh Kulkarni had a message for investors. “It’s still not the time to talk about sales and sales growth because we are still very much in the technology development mode,” he told Yahoo. “We have to get the technology perfected before we can start seeing real material difference in sales.”
However, Kulkarni is still pounding the table on his quantum computing startup. Rigetti Computing shares have gained nearly 900% over the past 52 weeks, and are up 1,157% over the past three months. The exec is confident that his company has enough cash on hand to fund its current research and development, and isn’t sweating recent comments from Nvidia (NVDA) CEO Jensen Huang, who cautioned that the most useful quantum computers may be 15-30 years away.
For investors then, the story with RGTI stock is one of a red-hot startup focused on emerging technology that has the power to transform the world. Its sales are not a focus, outside a few government contracts, and it is “three to five years” away from breaking even with its cash flows.
Let’s dive in and see how investors should approach RGTI stock now.
About Rigetti Computing Stock
Rigetti Computing (RGTI) bills itself as an “integrated systems company,” noting that it produces quantum computers and quantum computer processors. It also markets a Quantum Cloud Services platform, allowing customers to integrate quantum solutions in cloud environments.
One of its products is the Novera QPU, a 9-qubit quantum computer that the company says is a smaller version of its most powerful systems. It comes with a price tag starting at $900,000 and up, but it suggests to investors that the future could soon look like going to a website and purchasing a quantum computer for personal use.
Rigetti is valued at a market capitalization of $1.7 billion, and is based in Berkeley, California.
Rigetti Q3 Snapshot
Rigetti reported its third-quarter results in November, posting revenue of $2.4 million and a net loss of $14.8 million. Its revenue was down year-over-year, although its net loss narrowed. This ties into Kulkarni’s statement that the story for Rigetti right now is not one of sales.
The company reported that its operating expenses came in at $18.6 million, down slightly from $19.1 million in the year-ago period. Its cash and cash equivalents came in at $92.6 million at the end of Q3.
Its quarterly update also included key things to watch in its business in the quarters ahead. Rigetti shared that it plans to release a 36-qubit system by mid-2025 and then release a 100-qubit system by the end of the year using its new system architecture. The company also shared that it is prioritizing work on quantum error correction, considered a necessary technological breakthrough, and that it has been using a new chip fabrication process for its quantum processors.
Is RGTI Stock a Buy Now?
With seemingly the whole world watching quantum computing stocks, how should investors play RGTI? The stock currently holds a consensus “Strong Buy” rating from the five analysts that cover its shares. Four analysts have a “Strong Buy” rating and one has a “Moderate Buy.” Its average price target of $5.20 is more than 50% below its current trading price, but shares are still below their Street-high target of $12 and their 52-week high of $21.42. This suggests that RGTI stock has some room to run, and could be a savvy buy for investors here.
