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The U.S. Department of Defense has announced a new initiative that’s helping Rigetti Computing (RGTI) amidst continued volatility in the broader market.
Last week, the federal department picked RGTI and 14 other tech companies for a program it’s calling the “Quantum Benchmarking Initiative.”
QBI aims at exploring whether designing a quantum computer that offers better computational value than the cost of building and operating it is possible by 2033.
Rigetti Computing stock is down more than 45% year-to-date.
Does QBI Make Rigetti Computing Stock More Attractive?
QBI could be a reason to buy RGTI shares as it aims at promoting quantum computing from “hype” to “prototype.”
According to Subodh Kulkarni, the chief executive of Rigetti Computing, federal support is “critical for advancing quantum computing technology.”
In March, China also launched a $138 billion fund focused on emerging technologies, including quantum computing, which bodes well for Rigetti Computing stock as it could make the U.S. invest more aggressively in quantum computing to maintain its technological lead over Beijing.
Plus, expectations that the quantum technology market will grow at a compound annualized rate of about 25% through 2034 make RGTI shares more attractive to own at current levels as well.
RGTI Shares Have Upside to $16 in 2025
In February, Taiwan’s second-largest contract electronics manufacturer, Quanta, agreed to invest about $35 million in Rigetti Computing.
According to Brian Kinstlinger, an Alliance Global analyst, that transaction further substantiates just how well RGTI is positioned in quantum computing.
In fact, it’s even ahead of the giants, including Microsoft (MSFT) and Amazon (AMZN) in quantum technology, he argued in a research note last week.
Kinstlinger also raised his price target on Rigetti Computing shares to $16, indicating potential upside of nearly 100% from current levels.
Rigetti Continues to Be a Street Favorite
Investors should note that Alliance Global doesn’t have a contrarian view on RGTI shares.
The consensus rating on Rigetti Computing stock also currently sits at “Strong Buy” with the mean target of nearly $15 indicating potential upside of about 90% from here.
