TLDR
- Rigetti Computing (RGTI) stock has surged 1,140% over the past six months but is currently down 47% from its 52-week high
- The company announced a $35 million private placement with Quanta Computer Inc., contributing to a 57% quarterly price surge
- Rigetti’s new Ankaa-3 quantum computer featuring 84-qubit architecture is expected to drive 30% revenue growth in 2025
- Despite technological promise, Rigetti faces challenges with limited commercial momentum, generating only $10.8 million in revenue for 2024
- The stock is trading at 182 times sales with a $3 billion market cap, indicating high growth expectations despite current financial performance
Rigetti Computing, a leader in quantum computing technology, has experienced extraordinary market volatility over recent months as investors weigh its technological promise against financial realities. The quantum computing specialist saw its shares skyrocket by 1,140% over a six-month period, catching the attention of Wall Street and tech investors alike.
The Berkeley-based company is focused on developing quantum systems that could potentially transform the technology landscape in the coming decade. Rigetti takes a full-stack approach to quantum computing, designing and manufacturing its own quantum chips while offering cloud-based access for customers.
Despite the impressive stock performance, Rigetti shares have recently pulled back, currently trading 47% below their 52-week high. This volatility reflects investor uncertainty about the company’s path to profitability.
For 2024, Rigetti reported just $10.8 million in revenue, highlighting the early-stage nature of its commercial operations. This limited commercial momentum comes as the company continues to refine its technology offerings.
The company’s market capitalization stands at approximately $3 billion. With this valuation against current revenue, Rigetti stock trades at a premium of 182 times sales, suggesting investors are pricing in substantial future growth.
Analysts project $14 million revenue in 2025
Wall Street analysts project Rigetti will reach $14 million in revenue in 2025. This would represent a 30% year-over-year increase, potentially providing support for the stock if these targets are met or exceeded.
A key development for Rigetti has been the introduction of its Ankaa-3 quantum system. This new system features an 84-qubit architecture with extensive hardware redesign and improved performance capabilities.
The company believes the Ankaa-3 could accelerate growth by enabling broader customer adoption of quantum computing solutions. Industry estimates suggest the quantum computing market opportunity could reach $170 billion, though Rigetti faces significant competition.
Tech giants including Microsoft and Alphabet are developing their own quantum systems, creating an intensely competitive landscape. Rigetti must prove it can deliver practical, scalable solutions while competing against these well-funded rivals.
In March 2025, Rigetti announced a $35 million private placement involving Quanta Computer Inc. This capital infusion coincided with a 57% quarterly price surge in the stock.
Positive tech environment
The announcement came during a broader technology sector rally led by companies like Nvidia and Palantir. This positive tech environment likely contributed to renewed investor interest in Rigetti shares.
Rigetti has been active in financial management, having completed a $100 million follow-on equity offering in November 2024. The company also paid off a $10.5 million loan in December 2024, improving its financial profile.
An important development for the company was its addition to the S&P Semiconductors Select Industry Index in December 2024. This inclusion increased Rigetti’s visibility among investors focused on semiconductor and computing technologies.
Director Cathy McCarthy is set to depart from Rigetti’s board, though reports indicate this is unrelated to any policy disagreements. This appears to have had minimal impact on investor sentiment toward the company.
Rigetti’s 470.99% total return over the past year has significantly outperformed both the broader US market’s 9.5% gain and the semiconductor industry’s 16.5% return during the same period. However, investors should prepare for continued volatility as the company works to convert technological promise into sustainable financial results.
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