TLDR
- Rigetti Computing (NASDAQ: RGTI) stock surged 10.9% after Nvidia CEO Jensen Huang said quantum computing is “reaching an inflection point”
- The company completed a $350 million equity offering on June 11, 2025, providing substantial funding for operations
- Cooler-than-expected inflation data boosted investor sentiment for speculative growth stocks like Rigetti
- First-quarter earnings showed a turnaround to $43 million profit from a previous $21 million loss
- Shares are trading at a 31.7% discount to analyst price target of $14.80, with revenue forecasted to grow 41.3% annually
Rigetti Computing stock jumped 10.9% in Wednesday trading as quantum computing caught fire once again. The rally came after Nvidia’s CEO made bullish comments about the sector’s future.
Multiple catalysts drove the surge. Nvidia CEO Jensen Huang kicked off the company’s GTC Paris conference with promising remarks about quantum computing technologies.
“Quantum computing is reaching an inflection point,”
Huang told attendees during his keynote speech. The comments sparked another powerful rally across quantum computing stocks.
Rigetti’s shares had climbed as much as 20.6% earlier in the session before settling back. The stock has now gained 25% over the last quarter.
The quantum computing specialist also benefited from better-than-expected inflation data. The Bureau of Labor Statistics released May’s consumer price index figures Wednesday morning.
Core CPI rose 2.8% annually, below the 2.9% economists expected. Monthly inflation ticked up just 0.1% compared to April’s reading, also below the 0.2% forecast.
The cooler inflation data supports the case for potential Federal Reserve rate cuts this year. Lower interest rates typically benefit speculative growth stocks like Rigetti.
🚨 BREAKING:
May CPI inflation ticks up to 2.4%, slightly under the 2.5% forecast.
Core CPI also eased to 2.8% vs 2.9% expected. pic.twitter.com/ruxA4U731z
— Trader Edge (@Pro_Trader_Edge) June 11, 2025
Fresh Capital Injection
Rigetti completed a $350 million equity offering on June 11, 2025. The funding provides substantial capital for the company’s quantum computing operations and research.
The timing of the equity raise coincided with positive market sentiment. Both the S&P 500 and Nasdaq posted gains as trade tensions eased and inflation data came in favorable.
The fresh capital comes as Rigetti continues advancing its quantum computing technology. The company has formed strategic collaborations with QphoX and the National Quantum Computing Centre.
These partnerships strengthen Rigetti’s position in the growing quantum computing market. The company’s focus on quantum advancements appears to be paying off with investors.
Financial Turnaround
Rigetti’s first-quarter earnings showed a dramatic turnaround. The company reported a $43 million profit, reversing a $21 million loss from the previous period.
This swing to profitability came despite declining sales during the quarter. The earnings beat demonstrates improved operational efficiency at the quantum computing firm.
However, Rigetti remains unprofitable on an annual basis. Analysts don’t expect the company to achieve sustained profitability over the next three years.
The company’s shares have delivered exceptional returns over the past year. Rigetti outperformed both the broader US market return of 12.8% and the semiconductor industry’s 11.8% gain.
Current trading levels represent a 31.7% discount to the consensus analyst price target of $14.80. This gap suggests potential upside if the company can execute on its growth plans.
Revenue forecasts show promise with analysts expecting 41.3% annual growth. The successful equity offering provides the capital needed to fund this expansion.
The quantum computing sector continues attracting investor attention as the technology matures. Rigetti’s strategic partnerships and recent funding position the company to capitalize on this trend.
Recent Developments
Rigetti’s stock performance reflects broader optimism about quantum computing’s commercial potential. The sector has seen increased investment and development activity in recent months.
The company’s collaborations with research institutions and technology partners demonstrate its commitment to advancing quantum capabilities. These relationships could prove valuable as the market develops.
Wednesday’s rally pushed Rigetti’s market capitalization higher as investors bet on the quantum computing future. The combination of Huang’s comments and successful fundraising created a perfect storm for the stock.
The $350 million equity offering completed June 11, 2025, represents one of the largest funding rounds in Rigetti’s history and provides significant runway for growth initiatives.
