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The quantum computing space is heating up, and pure-play quantum stock Rigetti Computing (RGTI) is right in the middle of the action. The stock has made waves recently, with shares spiking 30% on July 16 after the company unveiled a major technical milestone, achieving 99.5% median two-qubit gate fidelity on its modular 36-qubit system.
This advancement cuts error rates significantly compared to previous results and marks a big step toward making quantum computing commercially viable. At the core of this progress is Rigetti’s modular architecture, which combines four “chiplets” to create a scalable 36-qubit system. By applying techniques from the semiconductor industry, Rigetti is tackling the tough challenge of building larger quantum systems without sacrificing performance.
The result is a significant boost in system reliability, bringing real-world applications within reach. Now, all eyes are on Aug. 15, when Rigetti plans to officially launch its 36-qubit system. With a goal to roll out a system exceeding 100 qubits by the end of 2025, the company is positioning itself for the next phase of growth in the quantum space. For Rigetti stock watchers and quantum enthusiasts alike, Aug. 15 might just be a date worth circling on the calendar.
About Rigetti Computing Stock
Rigetti has been a key player in full-stack quantum computing since 2017, offering cloud-based access to its systems for enterprise, government, and research users. In 2021, it expanded into on-premises quantum solutions, delivering systems with 24 to 84 qubits. The 2023 launch of its 9-qubit Novera QPU further supported hands-on research by integrating easily with existing infrastructure.
Rigetti’s hybrid quantum-classical setup enables seamless cloud integration, while its in-house chip production and development underscores its focus on scalable, next-generation systems. The company’s market capitalization currently stands at approximately $4.2 billion.
After an explosive 1,400% rally over the past year — easily eclipsing the broader S&P 500 Index’s ($SPX) 15% gain — Rigetti Computing’s momentum has somewhat slowed in 2025 with shares down 6% year-to-date (YTD). Still, in just the past three months, the stock has roared back to life, soaring 56% as investor enthusiasm builds around Rigetti’s recent technical milestones and the upcoming launch of its 36-qubit system.
Rigetti’s growth potential may be turning heads, but its valuation is just as attention-grabbing. The stock is trading at an eye-watering 381 times sales, dwarfing the sector median. That kind of premium signals sky-high investor optimism about Rigetti’s future in quantum computing, even though its current revenue is still far from justifying such a lofty price tag.
A Closer Look at Rigetti’s Q1 Earnings Performance
Shares of Rigetti Computing took a 15% hit after the company reported fiscal 2025 first-quarter earnings results on May 12. The results raised concerns as revenue plunged a notable 52% year-over-year (YOY) to $1.5 million, largely due to the timing of milestone-based contracts. The figure also came in well below Wall Street’s forecast of $2.6 million. Adding to the disappointment, the company posted an adjusted loss of $0.08 per share, missing estimates by a steep 60% margin.
Operating expenses jumped 22% YOY to $22.1 million, with R&D spending alone accounting for nearly $15.5 million, highlighting the ongoing costs of pushing quantum development forward. While revenue remains choppy given the industry’s early-stage nature, Rigetti’s strong cash position of $237.7 million provides a solid safety net as it continues to invest in scaling and innovation.
On a more upbeat note, Rigetti has scored several strategic wins that highlight growing confidence in its quantum capabilities. A $5.5 million grant from the U.S. Air Force and a $35 million investment from Taiwan’s Quanta Computer stand out as strong endorsements. Adding to the momentum, Rigetti was also selected for DARPA’s high-profile quantum benchmarking program, advancing to Stage A with a $1 million award.
In addition to the highly anticipated launch of its 36-qubit system on Aug. 15, Rigetti is also preparing to unveil its second-quarter earnings results after market hours on Aug. 12. Ahead of the event, analysts tracking the stock are projecting a 28.6% YOY improvement in the company’s Q2 loss. Looking further into fiscal 2025, losses are expected to narrow by 30% to $0.25 per share, signaling steady progress on the path to improved financial health.
What Do Analysts Expect for Rigetti Stock?
While Rigetti Computing's financials may not yet turn heads, its steady pace of technical advancements continues to fuel optimism among analysts. Wall Street remains upbeat on RGTI stock, with shares earning a consensus “Strong Buy” rating overall. Out of six analysts covering the name, five back it with a “Strong Buy" rating while the remaining one analyst recommends a “Moderate Buy." That's a clear sign that confidence in Rigetti’s long-term potential remains strong despite near-term financial bumps.
The average analyst price target of $15.83 suggests 13% upside from current levels. Meanwhile, the Street-high target of $19 suggests that RGTI can rally as much as 36% from here.
