What’s Happening With Rigetti Computing Stock?

Rigetti Computing (Nasdaq:RGTI) has become a standout in the quantum computing arena, with its stock surging an astounding 1,080% over the past year. This dramatic rise reflects growing investor enthusiasm surrounding quantum computing’s transformative potential across industries. Quantum computing’s core appeal lies in its fundamental difference from classical computing. Traditional systems operate using bits that represent either a 0 or a 1, while quantum systems use qubits, which can exist in multiple states simultaneously. This phenomenon, known as superposition, allows quantum computers to solve complex problems and process massive datasets by evaluating numerous possibilities at once.

Its applications span various industries—from financial modeling to drug development and materials science. However, a key technical hurdle remains: as the number of qubits grows, so does the system’s susceptibility to errors. This instability is typical of nascent technologies and poses a challenge to broader commercialization. Still, the industry has made meaningful strides. Leading tech firms including Google, IBM, and Rigetti have showcased scalable quantum systems with dozens of qubits, marking progress toward real-world applications.

IBM, for instance, leads with its 1,121-qubit Condor processor and plans to develop 100,000-qubit systems by 2033. For those seeking gains with lower volatility, the High Quality portfolio has outperformed the S&P 500 significantly, delivering over 91% returns since inception. Also see – Is CRWD Stock Overvalued At $460? Rigetti’s Technology and Offerings Rigetti differentiates itself by using superconducting qubits—specifically, tunable transmons—operated via microwave pulses at ultra-low temperatures in dilution refrigerators. Its Ankaa-class platform features a square qubit lattice with tunable couplers to facilitate high-fidelity two-qubit operations. The company offers both entry-level and advanced quantum processors: The Novera QPU is Rigetti’s entry-level commercial device.

It includes a 9-qubit processor arranged in a 3×3 grid and is designed for researchers working on hybrid algorithms, calibration, and error correction.Higher-end systems include the Ankaa-2, an 84-qubit system accessible through cloud platforms, as well as the next-gen Ankaa-3.Ankaa-3 introduces substantial hardware upgrades, reaching a median iSWAP gate fidelity of 99.0% and fSim gate fidelity of 99.5%. The company aims to develop a 100-qubit system by year-end. These systems emphasize high two-qubit gate fidelity above 99%—a key requirement for implementing practical quantum error correction. Rigetti’s solutions are available through its Quantum Cloud Services and via partnerships with cloud platforms such as Amazon Braket and Microsoft Azure. Financial Check Despite its technological promise, Rigetti’s financials reflect the early-stage nature of quantum computing.

The firm generated just $9.2 million in revenue over the past twelve months and posted a $74 million operating loss. This highlights that the industry is still in a research-heavy phase rather than commercial maturity. RGTI’s stock history illustrates the volatility inherent in emerging tech. During the 2022 inflation-driven market downturn, Rigetti’s stock plummeted 96%, far worse than the S&P 500’s 25.4% drop. This stark contrast underscores the elevated risk profile associated with early-stage quantum companies.

Investment Verdict Rigetti epitomizes the high-risk, high-reward nature of investing in breakthrough technologies. Its future hinges on achieving continued innovation while managing costs. If successful in scaling production, Rigetti could see considerable upside, making it a levered bet on both the quantum computing trend and the company’s execution capabilities. Rigetti already counts NASA, Phasecraft, and Standard Chartered among its partners—offering some validation of its technology. As the field advances and quantum error rates fall, well-positioned players like Rigetti stand to benefit.

Still, substantial risks remain. The technology is not yet commercially proven, competitors like IBM and Google are well-resourced, and the timeline for broader adoption is unclear. Investors should weigh these risks against the potential rewards. For those preferring a steadier ride, consider the High Quality (HQ) Portfolio. This 30-stock portfolio has consistently outperformed the S&P 500 over the past four years, with less volatility.

What’s behind the performance? HQ Portfolio stocks tend to deliver stronger returns with lower risk compared to the broader market, as detailed in the HQ Portfolio performance metrics. Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.