TLDR
- Rigetti Computing stock jumped 49.4% this week before pulling back 9.80%
- Federal Reserve’s interest rate cut boosted speculative tech stocks including quantum computing
- Company secured $5.8 million Air Force Research Laboratory contract for quantum technology advancement
- Trump administration reportedly considering executive orders to support quantum computing industry
- Stock has reached overbought territory, surpassing analyst price targets despite strong momentum
Rigetti Computing stock delivered a wild ride for investors this week. The quantum computing company’s shares jumped 49.4% before giving back some gains with a 9.80% decline.
The rally began when the Federal Reserve cut interest rates by 25 basis points. Fed Chair Jerome Powell hinted at more cuts ahead, creating a bullish environment for speculative technology stocks.
Lower interest rates typically help companies like Rigetti that are still developing their technology. Investors become more willing to bet on future growth when borrowing costs drop.
The quantum computing sector got an extra boost from government contract news. Rigetti landed a $5.8 million deal with the Air Force Research Laboratory on Thursday.
The three-year contract will see Rigetti partner with the military lab to advance quantum computing technologies. They’ll work alongside QphoX, a quantum transduction specialist.
Government contracts provide steady revenue streams for emerging technology companies. They also validate the commercial potential of quantum computing applications.
Trump Administration Could Boost Sector
Reports emerged that the Trump administration is considering executive orders to support quantum technology development. While nothing has been confirmed, the speculation added to the stock’s momentum.
The potential government support comes as quantum computing reaches critical development stages. Companies in the sector are competing to achieve practical quantum advantages over traditional computers.
Rigetti’s Air Force contract suggests military applications are gaining traction. Defense agencies often serve as early adopters of cutting-edge technologies before they reach commercial markets.
The company’s stock has been extremely volatile throughout 2025. Shares have traded in a wide range from $0.71 to $29.09 over the past 52 weeks.
Overbought Territory Raises Concerns
Despite the strong rally, analysts are expressing caution about the stock’s near-term prospects. The shares have pushed into overbought territory according to technical indicators.
The stock has surpassed average analyst price targets, which makes additional short-term gains uncertain. Some investors are taking profits after the rapid climb.
Trading volume has been heavy, with daily volumes far exceeding the average of 45.3 million shares. High volume often accompanies both strong rallies and subsequent pullbacks.
The company’s current market cap stands at $9.25 billion. This valuation reflects high expectations for the quantum computing industry’s growth potential.
Rigetti’s gross margin remains negative at -39.99%, showing the company is still investing heavily in research and development. This is typical for companies in emerging technology sectors.
The year-to-date performance shows gains of 42.60% despite recent volatility. The stock has outperformed traditional tech indices but with much higher risk.
Technical sentiment signals remain bullish despite the recent pullback. However, the rapid price appreciation has left some investors questioning sustainability.
The Federal Reserve’s dovish stance continues to support growth stocks across the technology sector. Multiple rate cuts could provide tailwinds for speculative investments like quantum computing.
Rigetti’s partnership with QphoX adds technical expertise to the Air Force contract. The collaboration could accelerate development timelines for military quantum applications.
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