Nvidia's Growth and Market Position - A $1,000 investment in Nvidia over the past 10 years would have grown to roughly $265,840, largely driven by its data center GPUs for AI tasks [1] - Nvidia's revenue grew at a CAGR of 31% from fiscal 2014 to fiscal 2024, with analysts expecting a CAGR of 56% from fiscal 2024 to fiscal 2027 as the AI market expands [3] - Nvidia is the world's second-most valuable company with a market cap of $3.35 trillion, but investors seeking bigger gains might look to small-cap companies in nascent growth industries [4] Quantum Computing Market Potential - Quantum computers use qubits to process data faster than traditional binary computers, though they are still massive, expensive, and error-prone [6] - The quantum computing market is expected to expand at a CAGR of 34.8% from 2024 to 2032 as companies work to miniaturize QPUs and improve error correction [7] Rigetti Computing Overview - Rigetti Computing, a $335 million quantum computing stock, has rallied nearly 80% this year and aims to become a leader in the quantum computing niche [5] - The company designs and manufactures quantum integrated circuits and offers a cloud platform for developers to write quantum algorithms, making it a "full-stack" quantum computing company [8][9] - Rigetti went public via a SPAC merger in March 2022, despite the high costs of manufacturing, operating, and maintaining quantum computing hardware [10] Rigetti's Financial Performance and Challenges - Rigetti's revenue grew from $8 million in 2021 to $13 million in 2022 but declined to $12 million in 2023, missing its pre-merger projection of $34 million in 2023 [11] - The company faced challenges including uneven government contracts, leadership changes, rising interest rates, and persistent losses, leading to a stock price low of $0.38 in May 2023 [12] Rigetti's Technological Advancements and Future Plans - Rigetti launched its 9-qubit Novera QPU in December 2023, priced at $900,000, with orders from customers like SQMS, AFRL, and Horizon Quantum Computing [13] - The company plans to deploy its 84-qubit Ankaa-3 system by the end of 2024, a 36-qubit modular system in 2025, and a 100-qubit non-modular system by the end of 2025, with long-term goals for a 336-qubit system [14] - Analysts expect Rigetti's revenue to decline 8% to $11 million in 2024 but grow 47% to $16.2 million in 2025 and surge 130% to $37.3 million in 2026 as it scales up its business [15] Rigetti's Speculative Potential - Rigetti's stock is priced at 9 times its 2026 sales, and while it has grand ambitions in the quantum computing market, it remains a highly speculative play with risks of running out of cash before scaling up [16]

Core Viewpoint - Rigetti Computing (RGTI) has significantly outperformed major competitors and the broader technology sector in year-to-date performance, indicating strong market positioning and growth potential in the quantum computing space [1][2]. Year-to-Date Performance - RGTI shares have appreciated by 96.9% year-to-date, compared to Salesforce (28.8%), IBM (38.2%), and Alphabet (20%), while the broader sector has seen a 27.6% increase [1]. - In the Zacks Internet - Software industry, RGTI outperformed with a return of 96.9% against the industry's 31.2% [2]. Expansion of Portfolio - Rigetti's advancements in quantum computing technology are driving growth, with the introduction of a new modular system architecture and plans for a 36-qubit system by mid-2025 and a 100-qubit system by the end of 2025 [5]. - The company achieved a 99.4% median 2-qubit gate fidelity on its 9-qubit chips, which is essential for scaling quantum systems [5]. - The introduction of the Alternating Bias-Assisted Annealing technique enhances the fidelity and performance of quantum processors, supporting multi-chip architecture and scaling efforts [6]. Market Positioning - RGTI's modular chip architecture allows for efficient scaling by linking multiple identical chips, positioning the company to meet increasing market demand for scalable quantum systems [7]. - The quantum computing market is projected to grow at a CAGR of 20.1% from 2024 to 2030, indicating a favorable environment for RGTI's growth [8]. Clientele Expansion - Partnerships with Riverlane, NQCC, and collaborations with NVIDIA and Quantum Machines are significant growth drivers for Rigetti [9]. - Rigetti and Riverlane's development of quantum error correction technology is crucial for improving stability and reliability in quantum computing [10]. - Rigetti's technology is being utilized at the National Quantum Computing Centre in the UK, enhancing its profile in the international quantum research community [12]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is projected at $2.40 million, reflecting a decline of 28.99% year-over-year [13]. - The consensus for earnings indicates a loss of 8 cents per share, which is an 11.11% increase from the previous year's quarter [14]. - RGTI's forward 12-month Price/Sales ratio is 35.50X, significantly higher than the sector's 3.02X, suggesting that the stock may not be undervalued [17].

Market Performance - U.S. stocks experienced a positive trading session, with the Dow Jones index increasing by over 400 points, closing up 0.95% at 44,718.05. The NASDAQ rose 0.25% to 19,050.84, and the S&P 500 gained 0.29% to 5,986.39 [1]. Sector Performance - Consumer discretionary shares saw a notable increase of 1.6% on Monday [2]. - Energy shares, in contrast, fell by 1.8% [3]. Company News - BridgeBio Pharma, Inc. (BBIO) shares surged 19% to $27.80 following FDA approval of Attruby for treating adults with ATTR-CM [5]. - Quantum Computing Inc. (QUBT) shares rose 12% to $6.80 after AWS announced the Quantum Embark program [5]. - Rigetti Computing, Inc. (RGTI) shares increased by 56% to $2.7211 after completing a $100 million at-the-market equity offering aimed at working capital and advancements in superconducting quantum computing technology [5]. - Cassava Sciences, Inc. (SAVA) shares plummeted 81% to $4.7301 after announcing that Simufilam did not significantly reduce cognitive decline in Alzheimer's patients [6]. - Oncternal Therapeutics, Inc. (ONCT) shares dropped 46% to $0.6201 due to NASDAQ's plans to delist its stock [6]. - CareMax, Inc. (CMAX) shares fell 14% to $0.6205 amid restructuring and bankruptcy challenges [6]. Commodity Market - Oil prices decreased by 3.3% to $68.92, while gold prices fell by 3.4% to $2,621.10 [7]. - Silver also declined by 3.4% to $30.265, while copper saw a slight increase of 0.2% to $4.0925 [8]. European Market - European shares showed positive movement, with the eurozone's STOXX 600 gaining 0.06%, Germany's DAX up 0.43%, and France's CAC 40 rising 0.03% [9]. - The Ifo Business Climate indicator for Germany decreased to 85.7 in November from 86.5 in October, falling short of market expectations [9]. Asian Market - Asian markets closed mixed, with Japan's Nikkei 225 gaining 1.30% and India's BSE Sensex up 1.25%, while Hong Kong's Hang Seng Index fell by 0.41% and China's Shanghai Composite Index decreased by 0.11% [10].

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Core Insights - Rigetti Computing, Inc. is a pioneer in full-stack quantum-classical computing and is set to present at SEMICON Europa 2024, discussing the transformative potential of superconducting quantum computing [1][2]. Group 1: Keynote Presentation - Dr. Subodh Kulkarni, CEO of Rigetti, will deliver a keynote titled "Superconducting Quantum Computing: Building on Decades of Semiconductor Innovation for Transformative Computational Power" at SEMICON Europa [3]. - The keynote will focus on advancements in quantum computing, neuromorphic computing, and trusted electronics, exploring the ecosystems surrounding these technologies [3]. Group 2: Future Roadmap - Rigetti has announced a 2025 roadmap that includes a new modular system architecture, with plans to release a 36-qubit system by mid-2025 and a system with over 100 qubits by the end of 2025, both targeting a 99.5% median 2-qubit fidelity [4]. - The upcoming systems will utilize the Alternating-Bias Assisted Annealing (ABAA) chip fabrication technique, which allows for precise qubit frequency targeting, forming the basis of Rigetti's scaling strategy [5]. Group 3: Technological Advantages - The company asserts that superconducting qubits are the leading modality for high-performance quantum computers, achieving gate speeds of 60-80 nanoseconds, significantly faster than other modalities like ion traps and neutral atoms [6]. - Rigetti's multi-chip architecture aims to leverage its strengths in technology stack and modular QPU design to enhance performance optimization [6]. Group 4: Company Overview - Rigetti has been operating quantum computers over the cloud since 2017, serving a diverse clientele including global enterprises, government, and research institutions through its Rigetti Quantum Cloud Services platform [7]. - The company has developed the industry's first multi-chip quantum processor and manufactures its chips in-house at Fab-1, the first dedicated quantum device manufacturing facility [7].

Financial Data and Key Metrics Changes - Revenues in Q3 2024 were $2.4 million, down from $3.1 million in Q3 2023, reflecting the variable nature of contract deliverables and timing with major government agencies [12] - Gross margins decreased to 51% in Q3 2024 from 73% in Q3 2023, attributed to a recent contract with a lower gross margin profile [12] - Total operating expenses (OpEx) in Q3 2024 were $18.6 million, slightly down from $19.1 million in the same period last year [13] - Net loss for Q3 2024 was $14.8 million or $0.08 per share, compared to a net loss of $22.2 million or $0.17 per share in Q3 2023 [13] - Cash, cash equivalents, and available-for-sale investments totaled $92.6 million as of September 30, 2024, with $12 million raised from the sale of common shares during Q3 2024 [14][15] Business Line Data and Key Metrics Changes - The company is on track to develop and deploy the anticipated 84-qubit Ankaa 3 system by the end of 2024, aiming for over 99% median 2-qubit gate fidelity [5][6] - The introduction of a new modular system architecture is planned, with a 36-qubit system expected by mid-2025 [5] Market Data and Key Metrics Changes - The company is focusing on government funding opportunities, particularly from the U.S. Government, which is seen as a primary source for funding ongoing research initiatives [21][22] - The NQI reauthorization is expected to significantly increase quantum funding, potentially reaching $2.5 billion over five years [47][50] Company Strategy and Development Direction - The company plans to leverage its ABAA technique and multi-chip architecture as the cornerstone of its scaling strategy for higher-qubit count systems [11] - The focus on tiling smaller qubit chips is seen as a more practical approach to scaling qubit counts compared to larger monolithic chips [27][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving targeted fidelities and scaling qubit counts, emphasizing the advantages of superconducting qubits for hybrid computing [17][21] - The company anticipates that successful execution of its roadmap will increase interest and funding from government and research customers [53][54] Other Important Information - The UK’s National Quantum Computing Centre officially opened a facility that will support quantum computing research, including the company’s 24-qubit Ankaa class system [10] - The company is collaborating with Riverlane to advance quantum error correction technology, which is critical for developing fault-tolerant quantum computers [8][39] Q&A Session Summary Question: Changes in roadmap and strategy - Management confirmed increased confidence in the roadmap and the ability to achieve targeted fidelities while scaling qubit counts [16][17] Question: Government funding opportunities - Management highlighted the importance of U.S. government funding and ongoing lobbying efforts to secure contracts, especially in light of the NQI reauthorization [20][21] Question: Balance between single chip processors and tiling - Management indicated that tiling 9-qubit chips is currently optimal, but they will explore other configurations as needed [24][26] Question: Quantum error correction focus - Management stated that error correction is already becoming relevant and will play a larger role as fidelity improves [30][31] Question: NQCC contract status - Management confirmed that the NQCC contract will continue through Q1 2025, with ongoing gross margin challenges [32] Question: International engagement and opportunities - Management noted increasing opportunities with international governments as hardware capabilities improve [56][58] Question: Total addressable market (TAM) outlook - Management projected a sizable market opportunity of $7.5 billion over the next five years, primarily from on-premise quantum computing for research customers [60][62]

Financial Performance - The company reported net losses of $75.1 million and $71.5 million for the years ended December 31, 2023 and 2022, respectively, with a net loss of $48.0 million for the nine months ended September 30, 2024[174]. - Revenue for the three months ended September 30, 2024, was $2,378 million, a decrease of $727 million (23%) compared to $3,105 million for the same period in 2023[194]. - Total gross profit for the three months ended September 30, 2024, was $1,204 million, down $1,067 million (47%) from $2,271 million in the same period in 2023[194]. - Net loss for the three months ended September 30, 2024, was $14,833 million, a decrease of $7,382 million (33%) compared to a net loss of $22,215 million for the same period in 2023[214]. - The net loss for the nine months ended September 30, 2024, was $48.0 million, a decrease of $14.5 million from a net loss of $62.5 million in the same period of 2023[230]. Cash Flow and Liquidity - As of September 30, 2024, the company had an accumulated deficit of $401.8 million[174]. - The company expects existing cash, cash equivalents, and marketable securities to meet anticipated operating cash needs until midway through Q1 2026[175]. - The company expects existing cash, cash equivalents, and available-for-sale investments to meet operating cash needs for at least the next 12 months and into the first quarter of 2026[217]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $42.1 million, an increase of $3.9 million compared to $38.2 million for the same period in 2023[228][230]. - Cash provided by financing activities during the nine months ended September 30, 2024, totaled $41.8 million, an increase of $31.2 million compared to $10.5 million in the same period of 2023[234][237]. - The company has an effective shelf registration statement allowing it to offer and sell up to $250.0 million in securities, with $60.2 million of common stock remaining available for sale as of the report date[224]. - Total principal amount outstanding under the Amended Loan Agreement was $12.9 million as of September 30, 2024, with an interest rate of 11% or the US Prime Rate plus 7.50%[225]. - Changes in operating assets and liabilities had a $7.2 million negative impact on net cash used in operating activities during the nine months ended September 30, 2024[228]. Research and Development - The company anticipates continued increases in research and development expenses as it invests in quantum computing technologies[189]. - Research and development expenses decreased by $304 million (2%) for the three months ended September 30, 2024, compared to $13,056 million for the same period in 2023[198]. - The company anticipates that R&D expenditures will grow in the future as it continues to focus on its technology roadmap[201]. - The company anticipates needing additional capital to fund research and development efforts and business objectives, with future capital requirements dependent on various factors[217][224]. Operational Changes - A workforce reduction in February 2023 impacted approximately 50 employees, or 28% of the workforce, incurring a $1.0 million restructuring charge[180]. - The company plans to enhance its sales and service offerings and expand its customer base after potentially achieving quantum advantage[205]. Product Development - The company launched the Ankaa 84-qubit Ankaa™-2 system in 2023, achieving 98% median 2-qubit fidelity, a 2.5x performance improvement over previous QPUs[178]. - The company plans to release a 36-qubit system with a targeted 99.5% median 2-qubit fidelity by mid-2025 and a system with over 100 qubits by the end of 2025[178]. - The company plans to pursue sales of Novera™, its first commercially available QPU launched in 2023, featuring a 9-qubit chip[179]. - The company expects much of its future revenue to be generated from development contracts and anticipated sales of on-premises QPUs[195]. Cost Management - Cost of revenue increased by $340 million (41%) for the three months ended September 30, 2024, compared to $834 million for the same period in 2023[196]. - Selling, general and administrative expenses decreased by $200 million (1%) for the three months ended September 30, 2024, compared to $6,047 million for the same period in 2023[202]. - Interest expense decreased by $740 million (50%) for the three months ended September 30, 2024, compared to $1,473 million for the same period in 2023[208]. - Rising costs of raw materials and labor, attributed to inflation and supply chain constraints, are expected to persist[182].

Financial Performance - Total revenues for Q3 2024 were $2.4 million, while total operating expenses were $18.6 million, resulting in an operating loss of $17.3 million and a net loss of $14.8 million[2]. - Total revenue for the three months ended September 30, 2024, was $2,378,000, a decrease of 23.4% compared to $3,105,000 for the same period in 2023[21]. - Gross profit for the nine months ended September 30, 2024, was $4,694,000, down 30.0% from $6,692,000 in the prior year[21]. - Operating expenses for the three months ended September 30, 2024, totaled $18,550,000, a decrease of 2.9% from $19,103,000 in the same period last year[21]. - Net loss for the nine months ended September 30, 2024, was $48,027,000, an improvement from a net loss of $62,535,000 for the same period in 2023[22]. - Cash and cash equivalents at the end of the period were $20,286,000, down from $21,392,000 at the beginning of the period[22]. - The company reported a net cash used in operating activities of $42,083,000 for the nine months ended September 30, 2024, compared to $38,158,000 for the same period in 2023[22]. - Total liabilities decreased to $34,412,000 as of September 30, 2024, from $50,325,000 at December 31, 2023, representing a reduction of 31.6%[20]. - The total stockholders' equity increased to $122,838,000 as of September 30, 2024, from $109,588,000 at December 31, 2023[20]. - The company issued 191,958,045 shares as of September 30, 2024, compared to 147,066,336 shares at December 31, 2023[20]. Quantum Computing Developments - The company plans to release a 36-qubit system in mid-2025 with a targeted 99.5% median 2-qubit fidelity, followed by a system with over 100 qubits by the end of 2025[3]. - Rigetti aims to achieve a 99+% median 2-qubit gate fidelity for its 84-qubit Ankaa™-3 system by the end of 2024[4]. - The company demonstrated tiling of 9-qubit chips at 99.4% 2-qubit median fidelity without performance deterioration in Q3 2024[6]. - Rigetti's new ABAA technique allows for precise targeting of qubit frequencies, improving execution of 2-qubit gates and reducing defects[11][12]. - The National Quantum Computing Centre (NQCC) opened a facility on October 25, 2024, featuring a fully operational 24-qubit Ankaa-class system for research and testing[13][14]. - Rigetti's Novera™ QPU is co-located at the Israeli Quantum Computing Center, facilitating research in qubit characterization and hybrid quantum algorithms[9]. - The company is collaborating with Riverlane to advance quantum error correction (QEC) technology, essential for developing fault-tolerant quantum computers[7][8]. - Rigetti's quantum computing systems are designed to integrate with current CPUs/GPUs, achieving system gate speeds of 60-80 ns, significantly faster than other modalities[5].

Financial Performance - Total revenues for Q3 2024 were $2.4 million, a decrease from $3.1 million in Q3 2023 [2][23] - Total operating expenses for Q3 2024 were $18.6 million, compared to $19.1 million in Q3 2023 [2][23] - The operating loss for Q3 2024 was $17.3 million, slightly higher than the loss of $16.8 million in Q3 2023 [2][23] - The net loss for Q3 2024 was $14.8 million, compared to a net loss of $22.2 million in Q3 2023 [2][23] - As of September 30, 2024, cash, cash equivalents, and available-for-sale securities totaled $92.6 million [2] Technology Roadmap - The company plans to introduce a new modular system architecture in 2025, with a 36-qubit system expected by mid-2025 [3] - By the end of 2025, Rigetti aims to release a system with over 100 qubits, targeting a median 2-qubit fidelity of 99.5% [3] - Rigetti is on track to develop the 84-qubit Ankaa™-3 system, aiming for over 99% median 2-qubit gate fidelity by the end of 2024 [4] Innovations and Techniques - Rigetti's superconducting qubits are fabricated using established semiconductor techniques, achieving faster gate operations than other modalities [5] - The company has demonstrated tiling of 9-qubit chips without performance deterioration, indicating advancements in multi-chip scaling technology [6] - The Alternating-Bias Assisted Annealing (ABAA) technique allows for high-performance QPUs with precise frequency targeting, crucial for high fidelities [6][11] Research Collaborations - Rigetti is collaborating with Riverlane to advance quantum error correction (QEC) technology, essential for building fault-tolerant quantum computers [7][8] - A Novera QPU has been co-located at the Israeli Quantum Computing Center for research and experimentation, including a reinforcement learning project [9][10] Business Developments - The National Quantum Computing Centre (NQCC) opened a facility that includes a fully operational 24-qubit Ankaa-class system for research and development [13][14]

Core Viewpoint - Rigetti Computing (RGTI) is expected to report third-quarter 2024 results on November 12, with projected revenues of $33.33 million, reflecting a year-over-year growth of 7.07% and an anticipated loss of 8 cents per share, indicating a 38.46% increase from the previous year's quarter [1]. Company Performance and Developments - Rigetti's focus on high-fidelity Quantum Processor Units (QPUs) and expanding market presence through partnerships and customer acquisitions, especially in government and international markets, is expected to drive growth in the upcoming quarter [3]. - The company achieved a 99.3% median 2-qubit gate fidelity on its 9-qubit Ankaa class quantum system in Q2 2024, which is a significant advancement towards deploying the 84-qubit Ankaa 3 system by year-end [4]. - The strong performance of Rigetti's 24-qubit system, with a 99% fidelity rate and rapid gate speeds of 60-80 nanoseconds, is likely to attract more partners and customers, enhancing market presence and revenue growth [5]. - Rigetti's sale of the Novera QPU to Horizon Quantum Computing in Q2 2024 demonstrates its ability to generate revenue through product sales, with expectations of more sales and potential new contracts aiding revenues in Q3 [6]. Market Position and Comparisons - Rigetti shares have underperformed compared to the Zacks Computer & Technology sector and peers like Salesforce, IBM, and Alphabet, with a year-to-date return of 14.8% versus 48%, 30.7%, and 29.4% respectively [7]. - The stock has also underperformed the Zacks Computer - Software industry, which has returned 24.9% year-to-date, and is trading at a forward 12-month Price/Sales ratio of 11.93X, higher than the sector's 7.95X [8]. Industry Outlook - The quantum computing market is projected to grow at a CAGR of 20.1% from 2024 to 2030, presenting growth opportunities for Rigetti [10]. - Rigetti's recent collaboration with Riverlane demonstrated real-time, low-latency quantum error correction on its 84-qubit Ankaa-2 system, marking progress towards fault-tolerant quantum computing [11]. - The company announced a novel chip fabrication process that enhances qubit frequency targeting, which is expected to improve quantum computing performance [12]. - Rigetti's modular chip architecture allows for efficient scaling by linking multiple identical chips, positioning the company to meet increasing market demand for scalable quantum systems [13].