January 20, 2025

RGTI Surges 679% in 3 Months: More Room to Grow or Time to Sell?

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Rigetti Computing RGTI shares have skyrocketed 678.9% in the past three months compared with the Zacks Internet - Software industry’s return of 8.6% and the broader Zacks Computer & Technology sector’s growth of 4.5%.

RGTI’s shares have outperformed its peer, D-WAVE QUANTUM QBTS, which has gained 335.5% over the past three months.

The outperformance can be attributed to RGTI’s expanding clientele and its growing influence in the quantum computing space.

RGTI Shares Beat Sector, Industry

RGTI Surges 679% in 3 Months: More Room to Grow or Time to Sell?

RGTI Expands Quantum Computing With 84-Qubit Ankaa-3

Rigetti’s advancement in quantum computing technology has been a key catalyst in driving the company’s share price movement.

In December 2024, RGTI launched its 84-qubit Ankaa-3 quantum computer, featuring a hardware redesign that boosts performance and scalability. With a median 99% iSWAP gate fidelity and 99.5% fSim fidelity, it supports advanced algorithms and is now available on Rigetti QCS.

The system will expand to Amazon AMZN Braket and Microsoft MSFT Azure in early 2025, allowing users to leverage Amazon and Microsoft platforms for quantum computing innovation.

RGTI Leads Quantum Computing With New Advancements

RGTI’s expanding portfolio in the quantum computing space has been noteworthy. In the third quarter of 2024, Rigetti successfully demonstrated 9-qubit chips with 99.4% median 2-qubit gate fidelity and announced plans to release a 36-qubit system by mid-2025. These advancements in quantum hardware are vital for RGTI’s future growth.

RGTI made advancements in quantum computing, including the development of its multi-chip architecture for scaling up qubit systems. This positions Rigetti at the forefront of the industry and enhances its capabilities in quantum computing.

As the quantum computing market continues to evolve, RGTI is poised to benefit from its growth. Per a Grand View Research report, the quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030.

RGTI Benefits From a Strong Partner Base

RGTI’s partnership with Riverlane, NVIDIA and Quantum Machines has been a major growth driver for its success, positioning the company as a key player in the rapidly evolving quantum computing space.

In December 2024, Rigetti announced the successful application of artificial intelligence, in collaboration with Quantum Machines, to automate the calibration of its 9-qubit Novera QPU. This was achieved by leveraging NVIDIA DGX Quantum, enabling high gate fidelities and marking a significant advancement in quantum computing operations.

Rigetti’s partnership with Riverlane to develop quantum error correction technology has been noteworthy. This collaboration is essential for improving the reliability of quantum computing, a key hurdle in scaling up quantum systems.

In October, Rigetti, in collaboration with Riverlane, successfully demonstrated real-time and low-latency quantum error correction on Rigetti’s 84-qubit Ankaa-2 system. This system achieves faster decoding times to avoid backlog issues and ensure fault tolerance in quantum computing.

RGTI’s Earnings Estimate Shows Upward Trend

The Zacks Consensus Estimate for 2025 revenues is currently pegged at $15.32 million, indicating an increase of 40.29% year over year.

The consensus mark for 2025 loss per share is pegged at 28 cents, unchanged in the past 30 days. The figure indicates a year-over-year increase of 17.65%.

Rigetti Computing, Inc. Price and Consensus

Rigetti Computing, Inc. price-consensus-chart | Rigetti Computing, Inc. Quote

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

RGTI Suffers From Quantum Market Challenges

Rigetti’s advancements in the quantum computing space are continuously benefiting the company’s top-line growth.

However, challenging macroeconomic uncertainties and intense competition in the rapidly evolving and highly competitive quantum computing market have negatively impacted the company’s top-line growth.

These challenges are further compounded by recent remarks from influential industry leaders.

Meta CEO Mark Zuckerberg and NVIDIA CEO Jensen Huang have both expressed doubts about the near-term practical applications of quantum computing, suggesting it may take decades to become commercially viable.

The concerns raised by these high-profile CEOs’ have contributed to a market downturn affecting Rigetti and other companies in the quantum computing industry. This further pushed RGTI stock 12.54% down on Jan. 17, 2025.

What Should Investors Do With RGTI Stock?

RGTI stock is not so cheap, as suggested by the Value Score of F.

In terms of the forward 12-month Price/Sales, RGTI is trading at 113.48X, higher than the sector’s 7.02X.

Price/Sales (F12M)

Currently, Rigetti carries a Zacks Rank #3 (Hold), implying that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

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