Group 1: Industry Overview - Quantum computing is seen as a transformative technology that could address significant global challenges and create new markets [1] - Google has developed a quantum computing chip that can perform calculations in five minutes that would take current top computers 10 septillion years [2] - The quantum computing market is projected to be worth between $1 billion and $2 billion after 2030, indicating a long wait for substantial market opportunities [8] Group 2: Company Analysis - Rigetti Computing is competing in the quantum computing space but faces challenges in achieving practical applications of its technology [6][7] - The company has a market capitalization of $2.6 billion, but its stock may be overvalued given the projected market size and potential revenue [9][10] - Rigetti's share count has doubled since going public, leading to concerns about share dilution and the need for significantly higher revenue to maintain valuation [10][11] Group 3: Investment Considerations - The consensus among industry leaders is that practical quantum computers are still 5 to 30 years away, suggesting that investors may need to be patient [7][8] - Rigetti's potential revenue by 2030, if it captures a tenth of the projected market, would result in a high price-to-sales ratio of 13, raising questions about profitability [10] - The likelihood of larger cloud companies like Amazon, Microsoft, and Google dominating the early quantum computing market raises doubts about Rigetti's competitive position [13]

Nvidia looks like a more reliable investment than this quantum computing darling.Rigetti Computing (RGTI 0.50%) took investors on a wild ride since its public debut three years ago. The quantum computing company went public by merging with a special purpose acquisition company (SPAC), and its stock opened at $9.75.But by May 3, 2023, its stock sunk to an all-time low of $0.38. Like many other SPAC-backed start-ups, Rigetti overpromised and underdelivered. It only generated $13 million in revenue in 2022, co ...

Core Viewpoint - Quantum and photonic computing possess significant computational advantages over traditional computing, especially in the context of the exponential growth in computational reasoning demands driven by AI. The commercialization of quantum computing is expected to accelerate with advancements from leading global companies like Google and IBM, as well as domestic innovations such as Wukong, Nine Chapters No. 3, and Zu Chongzhi No. 3 [1][3][4]. Group 1: Quantum and Photonic Computing Advantages - Quantum computing utilizes quantum bits (qubits) and can achieve exponential speedup over classical computers in specific problems, such as large number factorization and quantum chemistry simulations. For instance, Google's Willow chip, equipped with 53 qubits, can compute in a dimension of 2^53 [3][11]. - Photonic computing offers higher information capacity, efficiency, and parallelism compared to traditional electronic computing, making it advantageous for solving complex problems [3][14]. Group 2: Technological Pathways - Various technological pathways for quantum and photonic computing are rapidly evolving, including superconducting quantum computing, photonic computing, ion traps, neutral atoms, semiconductors, and topological computing. Superconducting quantum computing is currently the most mainstream approach, with products from companies like IBM and Google [4][18]. - The development of quantum computing technologies is characterized by a competitive landscape, with significant advancements in superconducting, ion trap, and photonic technologies [18][19]. Group 3: Industry Developments and Collaborations - NVIDIA has launched a "Quantum Day" at its GTC conference, inviting CEOs from 12 quantum computing companies to discuss advancements and applications of quantum technology in AI. NVIDIA also announced the establishment of a quantum computing research lab in Boston, collaborating with top universities [3][7][9]. - Major companies like Google, IBM, and Microsoft are making significant strides in quantum computing, with Google focusing on superconducting quantum computing and recently introducing the Willow chip with 105 qubits [40][41][47][48]. Group 4: Domestic Innovations - The "Zu Chongzhi No. 3" quantum computer developed by the University of Science and Technology of China has achieved 105 qubits, demonstrating high fidelity in quantum operations [54]. - The "Nine Chapters" series, led by the University of Science and Technology of China, has made significant advancements in photonic quantum computing, with the latest prototype achieving control over 255 photons, setting a new record in quantum computing superiority [56].

The most recent trading session ended with Rigetti Computing, Inc. (RGTI) standing at $11.16, reflecting a -0.53% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 0.31%.Coming into today, shares of the company had lost 5% in the past month. In that same time, the Computer and Technology sector lost 11.22%, while the S&P 500 lost 7.69%.Market participan ...

Rigetti Computing (RGTI 22.63%) captured Wall Street's attention by advancing the rapidly evolving field of quantum computing.Its shares skyrocketed an astonishing 1,140% over the past six months. However, uncertainty and questions regarding its financial outlook created volatility, and the stock is down about 47% from its 52-week high. Clues to the next direction for this stock lie in one metric investors should keep an eye on.A long development road ahead for RigettiRecent breakthroughs have paved the way ...

Since my last analysis of Rigetti Computing, Inc. (NASDAQ: RGTI ) during the quantum bubble burst of January 2024, the stock has lost nearly 10% in price, with heavy volatility in the process. I was bearish during that thesis, and began writingOliver Rodzianko is an investment analyst specializing in the technology sector, grounded in timeless value principles. His expertise spans AI, semiconductors, software, and renewable energy, with a focus on companies that demonstrate resilient management and lasting ...

Core Insights - Rigetti Computing (RGTI) shares have appreciated 14.3% since the fourth-quarter 2024 results were reported on March 5, despite a revenue decline of 32.6% year over year to $2.3 million, missing the Zacks Consensus Estimate by 5.25% [1][2][3] Company Performance - The decline in revenues is attributed to macroeconomic uncertainties and intense competition in the quantum computing market [1] - RGTI launched the Ankaa-3, an 84-qubit quantum system, achieving significant performance milestones, including a 99.0% median fidelity in two-qubit gate fidelity [3] - The company successfully sold its Novera QPU to Montana State University and the UK government, enhancing its global market presence [5] Strategic Collaborations - RGTI's collaboration with Quantum Elements and Qruise led to the automation of quantum processing unit calibration using AI, showcasing the potential of AI in quantum computing [4] - A strategic collaboration with Quanta Computer was announced, with both companies committing over $100 million each over five years to advance superconducting quantum computing [7] - Quanta will also invest $35 million in RGTI through a share purchase, pending regulatory approval [8] Market Outlook - The global quantum computing market is projected to grow at a CAGR of 20.5% from 2025 to 2030, indicating a favorable environment for RGTI [6] - The Zacks Consensus Estimate for 2025 revenues is pegged at $14.50 million, reflecting a year-over-year increase of 34.38% [9] Stock Performance - RGTI shares have outperformed the Zacks Computer & Technology sector and its industry peers year-to-date, with a 9.6% increase over the trailing three-month period [11][14] - Despite a high forward Price/Sales ratio of 95.3X compared to the sector's 5.97X, RGTI is viewed as a compelling investment opportunity due to its growth potential [15] Investment Rating - RGTI currently holds a Zacks Rank 2 (Buy) and a Growth Score of B, indicating a strong investment opportunity [16]

Group 1 - Rigetti Computing, Inc. (NASDAQ: RGTI) recently released its full-year 2024 results, indicating a focus on long-term growth potential despite previous cautions regarding capitalization and market conditions [1] - The company has shifted its investment approach to a simplified "Buy or Don't Buy" strategy, moving away from issuing Sell ratings and focusing on valuations rather than short-term price predictions [1] - The analyst emphasizes a cautious perspective when evaluating companies, reflecting a commitment to understanding business fundamentals and seeking attractive share prices [1] Group 2 - The article does not provide any specific financial metrics or performance data related to Rigetti Computing's results for 2024 [1]

Financial Performance - For the year ended December 31, 2024, the company reported revenue of $10.79 million, a decrease of 10% compared to $12.01 million in 2023[475]. - The net loss for the year ended December 31, 2024, was $200.99 million, significantly higher than the net loss of $75.11 million in 2023, representing a 168% increase in losses[475]. - The company has an accumulated deficit of $554.7 million as of December 31, 2024[457]. - The company expects to continue incurring losses as it invests in research and development and infrastructure[457]. - The company reported a total comprehensive loss of $201,127,000 for 2024, compared to a total comprehensive loss of $74,702,000 in 2023[566]. - The net loss for the year ended December 31, 2024, was $200.988 million, compared to a net loss of $75.107 million in 2023, indicating a significant increase in losses[571]. - Cash flows from operating activities resulted in a net cash used of $50.627 million in 2024, slightly higher than the $50.579 million used in 2023[571]. Revenue and Expenses - Revenue from Quantum Computing as a Service (QCaaS) decreased by $2.0 million in 2024, contributing to the overall revenue decline[476]. - Gross profit for 2024 was $5,697,000, down 38.4% from $9,208,000 in 2023[563]. - Total operating expenses decreased to $74,207,000 in 2024 from $81,503,000 in 2023, reflecting a reduction of 9.0%[563]. - Research and development expenses decreased by $3.0 million for the year ended December 31, 2024, largely due to a $0.9 million decrease in salaries and a $2.8 million decrease in IT costs[481][482]. - Selling, general and administrative expenses decreased by $3.3 million for the year ended December 31, 2024, primarily due to prior year expenses related to a forward agreement and impairment charges[484][485]. - Interest expenses decreased by $2.5 million for the year ended December 31, 2024, due to regular principal repayments and the full repayment of outstanding debt in December 2024[489]. Cash Flow and Financing - Cash used in investing activities totaled $78.4 million for the year ended December 31, 2024, primarily due to $224.8 million in purchases of available-for-sale securities[512]. - Cash provided by financing activities totaled $175.5 million for the year ended December 31, 2024, reflecting proceeds from multiple stock offerings[515]. - The company reported a net cash provided by financing activities of $175.459 million in 2024, a substantial increase from $13.230 million in 2023[571]. - Cash and cash equivalents increased significantly to $67,674,000 in 2024 from $21,392,000 in 2023, a growth of 216.5%[561]. - The company purchased available-for-sale securities totaling $224.764 million in 2024, compared to $109.252 million in 2023[571]. Future Plans and Investments - The company plans to release a 36-qubit system by mid-2025, targeting a 2x reduction in error rates from those achieved at the end of 2024[459]. - The company entered into a Collaboration Agreement with Quanta, committing to invest at least $250 million over the next five years in quantum computing[463]. - The company anticipates that R&D expenditures will grow in the future as it focuses on its technology roadmap and achieving broad quantum advantage[483]. Assets and Liabilities - Total assets rose to $284,787,000 in 2024, up 78.1% from $159,913,000 in 2023[561]. - Total liabilities increased to $158,198,000 in 2024, compared to $50,325,000 in 2023, marking a rise of 214.5%[561]. - The fair value of the derivative liability for Private Warrants was $22.8 million as of December 31, 2024, up from $1.6 million in 2023[530]. - The fair value of the derivative liability for Public Warrants was $70.3 million as of December 31, 2024, compared to $1.3 million in 2023[531]. - The Company had derivative warrant liabilities totaling $70.265 million for public warrants and $68.727 million for private warrants as of December 31, 2024[646]. Accounting and Reporting - The Company remains classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards[545]. - The Company has recorded a full valuation allowance against its deferred tax assets as of December 31, 2024, and December 31, 2023[626]. - The Company adopted ASU No. 2023-07, effective for the year ended December 31, 2024, which requires additional disclosures regarding reportable segment expenses[638]. - The Company is evaluating the impact of ASU 2022-03 and ASU 2023-09, effective for annual periods beginning after December 15, 2024, on its consolidated financial statements[639][640].

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...