TLDR
- Rigetti signed a letter of intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding over three years.
- RGTI jumped nearly 20% on Friday, closing at $26.42, as part of a broader quantum sector rally.
- The funding targets key technical challenges in superconducting quantum computing, including chip miniaturization and cryostat architecture.
- The deal includes a potential equity stake for the government, which could dilute existing holders if finalized.
- Analysts hold a Moderate Buy consensus on RGTI with an average price target of around $29–$30, implying modest upside.
Rigetti Computing (RGTI) stock surged nearly 20% on Friday after the company signed a letter of intent with the U.S. Department of Commerce for a potential award of up to $100 million in CHIPS Act funding. The stock closed at $26.42.
The funding is part of a broader $2.013 billion federal push under the CHIPS and Science Act, spread across nine companies. Seven of those are quantum computing firms, including D-Wave, PsiQuantum, Quantinuum, and Infleqtion. IBM and GlobalFoundries also made the list.
Rigetti’s slice — up to $100 million over three years — is specifically aimed at developing and scaling next-generation superconducting quantum computing technologies. That includes miniaturizing readout electronics and improving cryostat architecture.
CEO Subodh Kulkarni called it a vote of confidence from Washington. “This investment will allow us to tackle key scaling bottlenecks more rapidly and get us closer to utility-scale quantum computing,” he said.
One detail worth watching: the deal includes a potential government equity stake tied to the funding amount. That’s not a standard research grant — it gives the U.S. government a financial interest in Rigetti’s progress. For existing holders, it also raises the possibility of dilution if the agreement is finalized.
What Makes Rigetti Different
Rigetti’s core approach is superconducting qubits — the same basic technology used by IBM and Alphabet, but with a twist. The company uses a chiplet-based architecture, combining smaller quantum chips into larger systems.
Its 108-qubit Cepheus processor, for example, is built from twelve 9-qubit chiplets. The idea is to make scaling more manageable by avoiding some of the manufacturing hurdles that come with building one large chip. Gate speeds run between 50 and 70 nanoseconds, which is fast compared to some competing quantum approaches.
That positions Rigetti differently from IonQ, which uses trapped-ion technology, and from IBM, which has far greater resources. Rigetti’s pitch is more focused: control the full stack, build fast superconducting systems, and serve both cloud and on-premises customers — including government labs that can’t rely on public cloud access for sensitive workloads.
Analyst View and Recent Financials
Wall Street is cautiously optimistic. Of 13 analysts covering the stock, eight have buy ratings, four hold, and one sell. The average 12-month price target is around $29–$30, implying roughly 13% upside from Friday’s close.
Rigetti’s most recent quarterly results came in ahead of expectations. The company reported EPS of -$0.04, a penny better than the -$0.05 consensus. Revenue came in at $4.4 million, up 198.9% year-over-year and above the $4.09 million estimate.
The stock also got a lift from the wider quantum rally following the government’s announcement. Peers IonQ and D-Wave moved up 8% and 14% respectively on the same day. RGTI is up roughly 48% on a week-over-week basis.
Benchmark maintained a buy rating but lowered its price target from $35 to $25. Rosenblatt has a $40 target. The stock’s 52-week range is $10.30 to $58.15, with a 50-day moving average of $16.82.
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