Rigetti’s Stock Skyrockets—Is This the Next Big Quantum Breakthrough?
Shares of Rigetti Computing (NASDAQ: RGTI) have surged 14% following the company’s fourth-quarter 2024 earnings report. Despite posting a net loss of $153 million, investors remain optimistic about Rigetti’s advancements in quantum computing technology and key strategic partnerships.
The stock jump reflects growing enthusiasm for Rigetti’s progress in developing next-generation quantum processors, a field that could revolutionize industries from finance to artificial intelligence. The company’s strong backing from institutional investors and new partnerships suggest that Wall Street sees a bright future ahead.
Financial Snapshot—Why Investors Are Still Optimistic
Rigetti reported Q4 revenue of $2.3 million, a drop from $3.4 million the previous year. Operating expenses totaled $19.5 million, leading to an operating loss of $18.5 million. While these figures might seem concerning, much of the company’s $153 million net loss was due to non-cash adjustments related to fair value changes in earn-out and derivative warrant liabilities.
Despite the financial losses, Rigetti has secured its financial footing by raising $217.2 million through equity offerings and an additional $35 million investment from Quanta Computer. This influx of capital has eased liquidity concerns and provided the company with resources to continue advancing its quantum computing technology.
Breakthroughs in Quantum Computing Technology
Rigetti’s biggest highlight from Q4 was the launch of its 84-qubit Ankaa-3 system, which achieved a 99% gate fidelity—a key measure of quantum computing accuracy. This marks an important step in making quantum processors more reliable and commercially viable.
Additionally, Rigetti partnered with Quanta Computer in a $100 million deal to advance superconducting quantum technology. This partnership not only provides financial support but also strengthens Rigetti’s position against tech giants like Google and IBM, which have been dominating the quantum computing space.
In another sign of growing adoption, Montana State University became the first academic institution to purchase Rigetti’s Novera quantum processing unit (QPU), signaling interest from the academic sector in Rigetti’s technology.
Wall Street’s View—Is Rigetti the Next Big Thing?
Analysts remain divided on whether Rigetti can maintain its momentum. Needham analyst Quinn Bolton recently reiterated a “Buy” rating on the stock, setting a price target of $17—an 81.8% upside from current levels. He believes Rigetti’s technological advancements and strategic deals make it a strong long-term investment.
However, skeptics warn that competition from companies like Google, IBM, and Microsoft could make it difficult for Rigetti to carve out a dominant position in the quantum computing space. While Rigetti has improved its financial stability, it still needs to generate significant revenue growth to sustain its valuation.
The Road Ahead—What’s Next for Rigetti?
Rigetti Computing’s recent stock surge is a sign that investors are excited about the future of quantum computing. However, the company must continue to prove itself by scaling its technology, expanding partnerships, and demonstrating commercial applications.
With a mix of breakthrough technology, major funding, and analyst optimism, Rigetti is positioning itself as a serious contender in the quantum computing race. Whether it becomes the next industry leader or struggles against bigger players remains to be seen—but for now, Wall Street is watching closely.
