Core Viewpoint - Rigetti Computing (RGTI) shares are currently overvalued, indicated by a Value Score of F, with a forward 12-month price/sales (P/S) ratio of 116.46X, significantly higher than its median of 94.39X and the Zacks Computer and Technology sector's 6.53X [1]. Group 1: Stock Performance - RGTI's shares have surged 82.2% over the past month, outperforming the Zacks Internet - Software industry's return of 3.8% and the broader Zacks Computer & Technology sector's growth of 2.6% [4]. - RGTI has outperformed its peer, D-WAVE QUANTUM (QBTS), which gained 392% over the past month, attributed to RGTI's expanding clientele and growing influence in the quantum computing space [6]. Group 2: Quantum Computing Advancements - RGTI has made significant advancements in quantum computing, including the successful demonstration of 9-qubit chips with 99.4% median 2-qubit gate fidelity and plans to release a 36-qubit system by mid-2025 [7]. - In December 2024, RGTI launched its 84-qubit Ankaa-3 quantum computer, featuring a hardware redesign that enhances performance and scalability, with a median 99% iSWAP gate fidelity and 99.5% fSim fidelity [8]. - RGTI's multi-chip architecture development positions the company at the forefront of the quantum computing industry, enhancing its capabilities as the market evolves [9]. Group 3: Strategic Partnerships - RGTI's partnerships with Riverlane, NVIDIA, and Quantum Machines have been crucial for its growth, establishing the company as a key player in the rapidly evolving quantum computing space [10]. - Collaboration with Quantum Machines has led to the successful application of artificial intelligence to automate the calibration of its 9-qubit Novera QPU, achieving high gate fidelities [11]. - Rigetti's partnership with Riverlane has resulted in the demonstration of real-time and low-latency quantum error correction on its 84-qubit Ankaa-2 system, enhancing fault tolerance in quantum computing [12]. - Collaborations with academic and industry leaders, such as the UK's National Quantum Computing Centre and the Israeli Quantum Computing Center, provide access to advanced research facilities and expertise [13]. Group 4: Financial Outlook - The Zacks Consensus Estimate for 2025 revenues is projected at $15.32 million, indicating a year-over-year increase of 40.29% [14]. - The consensus mark for 2025 loss per share is pegged at 28 cents, reflecting a year-over-year increase of 17.65% [14]. Group 5: Market Challenges - Despite advancements, RGTI faces challenges from macroeconomic uncertainties and intense competition in the quantum computing market, negatively impacting top-line growth [15]. - Concerns raised by industry leaders, including Meta CEO Mark Zuckerberg and NVIDIA CEO Jensen Huang, about the near-term practical applications of quantum computing have contributed to a market downturn affecting Rigetti [16].

DELFT, The Netherlands and Berkeley, Calif., Feb. 11, 2025 (GLOBE NEWSWIRE) -- QphoX B.V., a Dutch quantum technology startup that is developing leading frequency conversion systems for quantum applications, Rigetti Computing, Inc. (NASDAQ:RGTI), a pioneer in full-stack quantum-classical computing, and Qblox, a leading innovator in quantum control stack development, today announced that their joint research demonstrating the ability to readout superconducting qubits with an optical transducer was published ...

Industry Overview - Quantum computing has the potential to revolutionize industries such as drug discovery and materials science by performing calculations exponentially faster than traditional computers [2][4] - Analysts at Boston Consulting Group predict that quantum computing technology could create up to $850 billion in economic value by 2040, indicating significant future growth potential [4] Company Profile: Rigetti Computing - Rigetti Computing, founded in 2013, went public in 2022 through a merger with a special-purpose acquisition company (SPAC) and adopts a "picks-and-shovels" approach by designing and fabricating quantum computing processors [5] - The company operates Fab-1, which is claimed to be the only dedicated quantum computing fabrication facility in the world, potentially giving it a competitive edge in the industry [5] - Rigetti offers Quantum Cloud Services (QCS), integrating its processors with traditional computing infrastructure, allowing businesses to utilize quantum computing power without the need for expensive hardware [6][7] Financial Performance - In the third quarter, Rigetti's revenue declined approximately 23% year-over-year to $2.4 million, while operating losses increased from $16.8 million to $17.3 million [8] - The company's significant research and development spending of $12.8 million in the third quarter is a major factor contributing to its cash burn [9] - Despite ongoing innovation and plans to introduce a new system architecture in 2025, the market may not be ready for widespread adoption of quantum computing technology, which could delay profitability [9][10]

In the latest trading session, Rigetti Computing, Inc. (RGTI) closed at $13.83, marking a +0.8% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.The company's shares have seen a decrease of 25.39% over the last month, not keeping up with the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7%.The investment community will be ...

Company Performance - Rigetti Computing, Inc. closed at $13.72, reflecting a +1.86% change from the previous session, outperforming the S&P 500's daily gain of 0.72% [1] - The stock has experienced a significant decline of 30.96% over the past month, contrasting with the Computer and Technology sector's loss of 1.35% and the S&P 500's gain of 1.02% [1] Earnings Projections - The upcoming EPS for Rigetti Computing is projected at -$0.08, indicating an 11.11% increase compared to the same quarter last year [2] - Quarterly revenue is estimated at $2.4 million, which represents a decrease of 28.99% from the year-ago period [2] Analyst Estimates - Changes in analyst estimates for Rigetti Computing are crucial as they reflect the evolving nature of near-term business trends [3] - Positive estimate revisions indicate analyst optimism regarding the company's business and profitability [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [5] - Rigetti Computing currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [5] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - Rigetti Computing, a quantum computing company, has shown significant stock recovery after a tumultuous period, but it still faces challenges in proving its long-term viability and growth potential in the quantum computing market [2][3][11]. Company Overview - Rigetti Computing went public via a SPAC merger on March 2, 2022, with an initial stock price of $9.75, which later fell to an all-time low of $0.38 by May 3, 2023, due to missed estimates and leadership changes [2][3]. - The company's stock has since rebounded to approximately $13.50, indicating a substantial recovery for investors who bought at the low [3]. Quantum Computing Technology - Quantum computers utilize quantum bits (qubits) to store data, allowing for simultaneous representation of zeros and ones, which enables faster processing of large data sets compared to traditional computers [4]. - Despite their advantages, quantum computers are currently larger, more expensive, and prone to errors, limiting their use primarily to research institutions and government agencies [5][6]. Product Development and Market Position - Rigetti designs and manufactures its own quantum processing units (QPUs) and offers a cloud infrastructure for quantum computing applications, positioning itself as a "full stack" player in the market [7]. - The company launched its Novera QPU, a 9-qubit commercial version, priced at $900,000, and received orders from notable customers [8]. Future Plans and Revenue Projections - Rigetti plans to introduce a modular quantum computing system this year and aims to deploy a nonmodular system with over 100 qubits by the end of 2026, along with a more powerful 336-qubit system in the coming years [10]. - Revenue projections indicate growth from $11 million in 2024 to $35 million in 2026, reflecting a 127% increase, although the company currently has a high enterprise value of $3.7 billion, trading at 105 times its projected 2026 sales [11]. Market Outlook - The quantum computing market is expected to grow at a CAGR of 34.8% from 2024 to 2032, with Rigetti potentially generating $120 million in revenue by 2032 if it matches market growth [12]. - However, caution is advised as the CEO of Rigetti has suggested that investors temper their near-term expectations, and industry leaders like Nvidia's CEO have indicated that practical quantum computers may still be decades away [12].

Core Viewpoint - The article discusses the lack of investment positions held by Parkev Tatevosian and The Motley Fool in the mentioned stocks, emphasizing their disclosure policy and potential compensation for promoting services [1] Group 1 - Parkev Tatevosian, CFA, has no position in any of the stocks mentioned [1] - The Motley Fool also has no position in any of the stocks mentioned [1] - Parkev Tatevosian is an affiliate of The Motley Fool and may receive compensation for promoting its services [1]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Company Analysis - Rigetti Computing (NASDAQ: RGTI) has experienced a significant stock price surge, increasing by more than 1,500% in 2024 [1] Industry Analysis - The quantum computing field is a focus of exploration, with Rigetti Computing being a key player in this sector [1] Investment Background - The analyst has a strong IT background and seven years of experience in the U S stock market, managing a family portfolio [1] - The analyst emphasizes a deep understanding of risk and reward, particularly in technology stocks, while also exploring diverse sectors for investment opportunities [1]