TLDR
- Jim Cramer warns Rigetti Computing is “speculation” but acknowledges quantum computing is “for real”
- Stock has surged 1,820% over past 12 months, outpacing other quantum computing companies
- Company achieved 99.5% gate fidelity with 36-qubit modular system, halving error rates
- Rigetti raised $350 million in Q2, ending with $571.6 million cash and no debt
- Trading at extreme 495 times sales multiple despite minimal $1.8 million quarterly revenue
Rigetti Computing stock has become a lightning rod for debate among investors and market commentators. Jim Cramer weighed in during his Mad Money lightning round when a caller asked about the quantum computing company.
“Okay, here’s my view on quantum computing: it is for real,” Cramer said. “Is Rigetti my favorite? No, but Rigetti’s one that could have a headline tomorrow.”
The CNBC host compared the stock to other speculative plays. He warned viewers that while he doesn’t want to keep them out of potential gains, “it is a speculation, please remember that.”
Cramer previously called RGTI a meme stock in March. Since that comment, the stock has gained nearly 65 percent.
The quantum computing company has delivered massive returns to investors over the past year. RGTI shares have surged 1,820 percent over 12 months, topping D-Wave Quantum’s 1,550 percent gain and IonQ’s 505 percent rise.
Despite these gains, the company’s fundamentals tell a different story. Rigetti posted just $1.8 million in quarterly revenue while losing nearly $40 million in the most recent quarter.
Technical Progress Shows Promise
Rigetti made headlines in August 2025 with its modular 36-qubit system breakthrough. The company’s four 9-qubit chiplets linked together achieved 99.5 percent median two-qubit gate fidelity.
This performance represents a 50 percent reduction in errors compared to its previous Ankaa-3 machine. The company now targets a 100-plus qubit chiplet system by year-end.
Think of Rigetti’s approach like building a supercomputer from many processors instead of one impossible monolith. The modular design helps sidestep yield issues that plagued single-chip designs.
Rigetti’s superconducting qubits operate at fractions of a degree above absolute zero. The company’s two-qubit gates run in tens of nanoseconds, roughly 100 to 1,000 times faster than trapped-ion or neutral-atom systems.
Faster gates allow more operations within limited coherence times. However, rival platforms often deliver higher fidelities and longer lifetimes.
Second-quarter 2025 revenue fell to $1.8 million from $3.1 million a year ago, reflecting contract timing. The company generates income from cloud access, custom algorithm work, and government R&D.
Operating losses of $19.9 million in the most recent quarter underscore the capital-intensive nature of quantum computing development. Technical progress is ramping while revenues remain minimal.
Government Backing Provides Validation
DARPA selected Rigetti as a performer in its Quantum Benchmarking Initiative. The program seeks “utility-scale” quantum computers by 2033, alongside IBM and IonQ.
DARPA’s track record includes the internet, GPS, and stealth aircraft. This backing represents a meaningful vote of confidence in Rigetti’s technology approach.
Washington is advancing the National Quantum Initiative Reauthorization Act with approximately $2.7 billion in funding. The Department of Energy Quantum Leadership Act adds another $2.5 billion.
Europe has pledged about 2 billion euros at the EU level and another 9 billion euros from member states. Global governments are racing to fund credible players in this emerging space.
Rigetti manufactures at its Fab-1 facility using semiconductor-style modular methods. By wiring smaller chips into larger systems, it sidesteps yield issues that plagued single-chip designs.
IBM’s 1,121-qubit Condor processor from 2023 underscored the limits of monolithic scaling. IBM itself has pushed toward modular architectures, validating Rigetti’s early approach.
The company was ahead of the curve in employing modular designs. This could translate into a key competitive advantage as the industry matures.
Cash Position Buys Time
Rigetti raised $350 million in Q2 through an at-the-market program. The company ended the quarter with $571.6 million in cash and no debt.
This war chest buys time through 2026 for continued development. However, the opportunistic raise at lofty prices signals management’s awareness that current valuations may not last.
At a $5.3 billion market cap on approximately $11 million in trailing revenue, RGTI trades at around 495 times sales. Traditional semiconductor giant Nvidia trades at approximately 40 times forward earnings with profits and proven demand.
The extreme valuation prices in perfection for Rigetti’s quantum computing bet. Risk-tolerant investors might cap exposure at no more than 2 percent of a well-diversified portfolio.
For most investors, it makes sense to wait for proof of real commercial traction. Quantum computing could be the next revolution or an expensive science experiment.
Rigetti’s 36-qubit milestone and DARPA backing validate its chiplet strategy, while $571.6 million in cash provides breathing room through 2026.
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