TLDR:
- Rigetti Computing (RGTI) currently holds a strong 1.17 average brokerage recommendation, with 5 Strong Buy and 1 Buy rating from analysts
- The company’s stock has surged 598.82% over the past year, despite reporting a Q3 2024 net loss of $14.8 million
- Rigetti plans to launch new 36 and 108 qubit systems in 2025, targeting 40% revenue growth through improved scalability
- The company recently achieved a breakthrough in optical readout of superconducting qubits, published in Nature Physics
- With $92.6 million in cash reserves, Rigetti maintains a solid financial position while continuing quantum system development
Quantum computing company Rigetti Computing (NASDAQ: RGTI) has emerged as a standout performer in the technology sector, with its stock price surging nearly 600% over the past year amid strong analyst support and technological breakthroughs.
Wall Street analysts have shown overwhelming confidence in the company’s prospects, with five out of six analysts issuing Strong Buy ratings and one recommending Buy. This translates to an average brokerage recommendation (ABR) of 1.17, placing it firmly in buy territory.
The company’s financial performance shows both challenges and opportunities. In the third quarter of 2024, Rigetti reported a net loss of $14.8 million, though this marked an improvement from the $22.2 million loss recorded in the same period of 2023. Revenue for the quarter stood at $2.4 million, down from $3.1 million year-over-year.
Operating expenses saw a modest decrease to $18.6 million in Q3 2024, compared to $19.1 million in the previous year. The company maintains a strong cash position, with $92.6 million in cash and equivalents at the quarter’s end.
Future Plans
Looking ahead, Rigetti has announced plans to launch new 36 and 108 qubit systems in 2025. These developments are part of the company’s strategy to achieve 40% revenue growth through improved scalability and reduced error rates in their quantum systems.
A recent technical breakthrough has added to the company’s momentum. Rigetti published research in Nature Physics detailing advances in optical readout of superconducting qubits. This innovation promises to reduce thermal load and space requirements for scalable quantum systems.
The company has strengthened its market position through key partnerships. Rigetti’s quantum computing services are now integrated with major cloud platforms including Amazon Braket and Microsoft Azure, expanding its reach to enterprise, government, and research clients.
As a full-stack quantum computing provider, Rigetti offers Quantum Computing as a Service (QCaaS) over the cloud. The company also generates revenue through the sale of custom computing components and development contracts.
The stock’s performance has caught the attention of institutional investors, with seven hedge funds holding positions in the company as of Q3 2024.
Despite the strong analyst recommendations, some market observers note that brokerage ratings should not be the sole factor in investment decisions. Studies suggest that analyst recommendations have historically shown limited success in predicting stock price movements.
Rigetti’s operating expenses have remained relatively stable, indicating disciplined cost management while pursuing technological advancement. The reduced net loss in Q3 2024 suggests progress toward improved financial performance.
Quantum Computing
The quantum computing sector has seen increased interest from retail investors, particularly through platforms like Robinhood. Rigetti’s sub-$20 stock price has made it accessible to retail traders, who accounted for 23% of U.S. equity volumes in 2023 according to JPMorgan.
The company’s current cash reserves of $92.6 million provide runway for continued research and development activities. This financial buffer supports Rigetti’s ambitious plans for new qubit system launches in 2025.
For the current year, analysts maintain steady earnings estimates, with the Zacks Consensus Estimate remaining unchanged at -$0.34 per share over the past month.
Recent developments in optical readout technology may help address key challenges in quantum computing scalability. This breakthrough could position Rigetti favorably as the quantum computing market continues to evolve.
