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Rigetti Computing shows progress in quantum computing technology, but still trails IBM and Google.
Strong cash reserves and partnerships provide a financial runway through 2026.
The stock remains highly speculative with minimal revenue and a very high valuation.
Rigetti Computing (NASDAQ: RGTI) has recently attracted significant attention in financial markets as one of the leading companies working on quantum computing technology. The company has made progress with its new hardware, secured fresh funding, and established partnerships that could help in long-term growth.
At the same time, its revenue remains very small compared to its market valuation, and the stock continues to behave in a highly speculative way. Looking at both the opportunities and the risks is important before deciding if it is a good buy at the current price.
Rigetti recently launched its 36-qubit multi-chip quantum computer called Cepheus-1-36Q. This machine achieved 99.5% median two-qubit gate fidelity, which means it cut error rates nearly in half compared to its earlier models. For a company that has often been seen as behind competitors like IBM and Google in terms of scale and performance, this was an important milestone. Rigetti has also set a goal of introducing a system with more than 100 qubits by the end of the year, showing that the company is pushing to improve scalability.
These advances matter because error rates and qubit scaling are two of the biggest challenges in making quantum computers useful in practice. While Rigetti still lags behind larger players who have already unveiled 100-plus qubit systems with even lower error rates, the company’s progress indicates that it is not standing still. For investors, this means Rigetti is staying relevant in the race to build commercially viable quantum systems.
On the financial side, Rigetti recently completed a $350 million at-the-market equity offering. This raised its cash reserves to around $572 million, with no debt on its balance sheet. Having this much cash gives the company enough financial runway to fund research and operations through at least 2026. This is a major advantage in a sector where companies often face pressure to raise capital frequently.
Rigetti also entered a $250 million partnership with Quanta Computer, a global hardware manufacturer. This agreement is expected to accelerate the development of quantum technologies and strengthen Rigetti’s position in building commercial solutions. In addition, the company secured a $5.8 million contract from the U.S. Department of the Air Force and launched a Quantum Core Research and Education Center with Montana State University. These deals help build credibility and provide small but important revenue streams in an otherwise slow-to-develop market.
Despite these positives, Rigetti Computing stock price prediction and actual financial results remain weak. In the second quarter of 2025, revenue fell to $1.8 million from $3.1 million in the same period last year. The operating loss was about $19.9 million for the quarter. Over the past twelve months, Rigetti generated only around $7.9 million in revenue.
What makes this striking is the company’s market capitalization, which stands at $5.3 billion. This means Rigetti is valued at nearly 495 times its annual sales. Such a high ratio shows that investors are betting heavily on the company’s future potential rather than its current financial performance. For comparison, even high-growth tech companies are rarely valued at more than 20 or 30 times sales.
Analyst ratings reflect this mixed picture. Around 71% rate Rigetti as a “Strong Buy,” 14% as “Buy,” and 14% as “Hold,” with no current “Sell” recommendations. Average price targets are in the range of $15 to $19. Some analysts point to the company’s partnerships and technical progress as reasons for optimism, while others warn that the valuation is excessive given current revenue levels.
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Market sentiment around Rigetti has been very strong in recent weeks. The stock gained about 12% over the past week, helped by optimism over technical milestones and the large cash raise. Activity in the options market has also shown increased bullish positioning, which suggests traders are betting on further gains in the short term.
High-profile market commentators have also added to the excitement. CNBC’s Jim Cramer described Rigetti as a company that “may have something that could be a home run,” although he also stressed that it remains speculative. Cantor Fitzgerald recently set a $15 target price, citing the partnership with Quanta and the company’s superconducting architecture as strengths. Overall, Rigetti has become a stock that excites traders looking for fast moves, but this comes with extreme volatility.
The risks around Rigetti are clear. The company still lags competitors such as IBM, which has already unveiled a 156-qubit system called Heron R2, and Google, which has a 105-qubit chip known as Willow. Both rivals also report lower error rates than Rigetti’s latest machine. This shows that Rigetti remains behind in both scale and performance.
Another risk is the nature of its revenue base. Most of Rigetti’s income comes from government contracts and research collaborations rather than from widespread commercial adoption. While these contracts provide stability, they do not yet show that quantum computing has broken into mainstream business applications. True commercial traction may still be many years away, meaning Rigetti will continue to spend heavily while bringing in very little revenue.
The broader quantum computing sector itself is still highly speculative. Consulting firms such as McKinsey project that the industry could be worth anywhere between $28 billion and $72 billion by 2035. However, these forecasts are based on long-term adoption, and there is no guarantee that current players will capture large shares of that market. Many early investors are essentially betting that Rigetti will survive and thrive long enough to see that commercial future.
Given this backdrop, Rigetti Computing is not a safe investment for those looking for steady growth or near-term profits. The stock may be suitable only for investors who are comfortable with high levels of risk and are willing to wait for many years in the hope that quantum computing technology matures. The potential rewards are significant if Rigetti succeeds in scaling its technology and capturing commercial contracts, but the risks of dilution, competition, and long-term uncertainty are just as large.
The company’s strong cash position does provide some reassurance that it can keep operating without immediate financial pressure. Its partnerships with large technology players and government contracts also suggest that Rigetti is building credibility. However, the extremely high valuation compared to current revenues means that the Rigetti Computing stock price already reflects a great deal of optimism.
Also Read - What is the Difference Between Quantum Computing and AI?
Rigetti Computing has achieved real progress with its latest hardware, improved its financial runway with new funding, and secured partnerships that could help in the long term. These factors show the company is still in the race to become a serious player in quantum computing. However, the valuation is very high compared to its actual revenue, and competition from giants like IBM and Google remains intense.
For investors, Rigetti is best viewed as a speculative play with potential long-term upside. It may be attractive for those who are willing to accept volatility and uncertainty in exchange for the chance of significant gains if quantum computing achieves commercial success. For more conservative investors, the risks and current lack of commercial revenue make Rigetti a difficult stock to justify buying right now.
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