Core Viewpoint - Stock splits can be used by companies to manipulate share prices and outstanding shares, and Rigetti Computing may be on stock-split watch due to its significant stock price increase and interest in quantum computing [2][3][10]. Group 1: Stock Splits Overview - Stock splits allow companies to change their share price and outstanding shares without affecting market capitalization, maintaining investors' equity positions [3][6]. - Traditional stock splits lower share prices while increasing the number of outstanding shares, whereas reverse stock splits do the opposite [3][5]. Group 2: Rigetti Computing's Performance - Rigetti Computing has gained attention in the quantum computing sector, with a market cap of $4.7 billion after a 1,370% increase in stock price over the past year [10]. - The company achieved a significant milestone with its 36-qubit system, which had a two-times lower gate error rate, and aims to replicate this success with a 100-qubit system [9]. Group 3: Stock Split Considerations - Rigetti previously faced potential delisting due to trading below $1 but has since complied with Nasdaq's requirements, reducing the need for a reverse stock split [10][11]. - Despite the stock's rise, there is no immediate necessity for Rigetti to conduct a stock split, as the current price of $15 is not seen as unattainable [10][12].

Core Insights - Rigetti Computing (RGTI) is making significant strides in bridging the gap between advanced quantum hardware and practical applications, with the Ankaa system being pivotal to this progress [1][6] - The company has introduced a 36-qubit chiplet-based architecture achieving 99.5% median two-qubit gate fidelity, effectively reducing error rates by half compared to previous generations [1][6] - Rigetti plans to scale this architecture to over 100 qubits by the end of 2025, indicating a feasible roadmap for commercial-grade quantum workloads [1] Product Developments - The Ankaa-2 system, featuring 84 qubits and 98% median two-qubit fidelity, was made publicly available on Amazon Braket in mid-2024, marking a transition from lab testing to real-world application [2] - Rigetti, in collaboration with Riverlane, demonstrated real-time quantum error correction on Ankaa-2 with decoding speeds under one microsecond, a crucial advancement towards fault-tolerance [2] Competitive Landscape - IBM's Quantum System Two, launched in December 2023, represents a significant advancement in modularity and scalability, with its first international deployment at RIKEN in Japan in mid-2025 [3] - IonQ has launched its Forte Enterprise system, now available through AWS Braket, focusing on algorithmic performance and strong coherence, providing a clearer path to scaling compared to peers still in pilot stages [4] Financial Performance - RGTI shares have declined by 3.7% year-to-date, contrasting with the industry growth of 15.6% [5] - The company has a price-to-book ratio of 20.32, which is above the industry average, and carries a Value Score of F [8] - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests a substantial increase of 86.1% compared to the previous year [10]

Group 1 - The quantum computing sector experienced significant gains, with Rigetti Computing (RGTI.US) rising over 9.8%, D-Wave Quantum (QBTS.US) increasing over 7%, Arqit Quantum (ARQQ.US) up over 6%, and Quantum Computing (QUBT.US) climbing over 5% [1] - Microsoft's CEO highlighted that quantum computing will be a crucial accelerator for cloud computing [1]

Core Insights - Quantum Computing Inc. (QUBT) and Rigetti Computing (RGTI) are emerging players in the quantum computing sector, with QUBT focusing on enterprise software and AI integration, while RGTI has reported significantly higher revenues and is advancing its technical roadmap [2][3][4] QUBT Highlights - QUBT raised $93.6 million in Q1 2025, increasing cash and cash equivalents to $166.4 million, followed by a $200 million private placement, bringing total cash to over $350 million [5][8] - The company launched a quantum photonic chip foundry in Tempe, AZ, producing thin-film lithium niobate chips, fulfilling commercial orders for corporate clients and academic institutions [6][7] - QUBT has secured early-stage commercial deployments, including a quantum vibrometer for Delft University and a $406,000 subcontract with NASA for LiDAR system accuracy improvement [7][8] RGTI Highlights - Rigetti reported $237.7 million in cash and equivalents at the end of April 2025, up from $209 million, following a $35 million strategic equity investment from Quanta Computer [9][10] - The company is advancing through government collaborations, securing a $5.48 million U.S. Air Force grant and leading a £3.5 million Innovate U.K. project [10] - Rigetti demonstrated optical control of superconducting qubits and is upgrading its Novera QPU platform to support multi-chip scaling [11] Stock Performance - Over the past year, QUBT shares surged 2336%, significantly outperforming the S&P 500's 19.4% rise, while RGTI shares increased by 1116% [12] - Despite both companies showing explosive stock gains, RGTI is viewed as a stronger near-term investment due to higher revenues and a clearer technical roadmap [16]

Core Insights - Quantum computing is evolving from a scientific experiment to a practical solution for real-world problems, with companies like Rigetti Computing (RGTI) and Quantum Computing Inc. (QUBT) leading the way through different technological approaches [1][3] Company Strategies - Rigetti is focused on building universal quantum computers using gate-based superconducting qubits, aiming for scalability and broad applicability across various industries [1][7] - QUBT is developing photonic quantum technologies with thin-film lithium niobate-based chips, targeting practical, room-temperature solutions for optimization and machine learning tasks [2][10] Commercialization Efforts - Rigetti's revenue primarily comes from government contracts and research partnerships, with a focus on long-term value through system performance improvements and cloud integration [11] - QUBT is adopting a product-first approach, having completed its photonic chip foundry and secured initial purchase orders, indicating growing traction in the market [12][14] Performance Metrics - Rigetti's shares have gained 2% year-to-date, while QUBT's shares have decreased by 2.4% [6] - Rigetti demonstrated a significant leap in error reduction with a 99.5% median two-qubit gate fidelity on its 36-qubit Ankaa-2 system [7] Future Roadmaps - Rigetti plans to develop a 336-qubit Lyra system and has a $250 million partnership with Quanta Computer to enhance chip production and cloud access [13] - QUBT is focusing on near-term adoption through its operational foundry and partnerships for practical applications in drug discovery and LIDAR processing [14] Financial Estimates - The Zacks Consensus Estimate for Rigetti's 2025 sales indicates an 18.63% year-over-year decline, while QUBT's estimates suggest a 34.1% growth [15][18] Investment Considerations - Both companies hold a Zacks Rank of 3 (Hold) and a Value Score of 'F', with Rigetti showing a Growth Score of 'B' and QUBT a Growth Score of 'C' [21][22]

Core Insights - The quantum computing sector is experiencing heightened competition, particularly between IonQ and Rigetti Computing, focusing on both scientific advancements and commercial viability [1][2] - Both companies are pursuing fault-tolerant quantum computing but through different technological approaches, with IonQ utilizing trapped-ion technology and Rigetti employing superconducting qubits [2] IonQ Overview - IonQ, established in 2015, emphasizes higher qubit fidelity and lower error rates through its trapped-ion technology, aiming for AQ 64 by 2025 to enhance practical applications [4][10] - The company is expanding into quantum networking through strategic acquisitions, including ID Quantique and Lightsynq, to bolster secure communications and quantum key distribution [5][10] - As of Q1 2025, IonQ has $697 million in cash, supporting its R&D and acquisitions despite rising operating losses, with an adjusted EBITDA loss of $35.8 million [6][10] - IonQ's competitive edge relies on proving the scalability of its trapped-ion systems, with the AQ 64 target being crucial for its market position against major competitors like IBM and Google [8] Rigetti Overview - Rigetti, founded in 2013, focuses on superconducting quantum computing with a modular "chiplet" design, targeting a 36-qubit system by mid-2025 and over 100 qubits by the end of 2025 [9][10] - The company secured a $35 million investment from Quanta Computer, enhancing its credibility and potential for high-volume manufacturing [12] - As of Q1 2025, Rigetti has $237.7 million in cash but reported modest revenue of $1.47 million, down 52% year-over-year, primarily from research contracts [13][10] - Rigetti faces intense competition in the superconducting quantum space, needing to differentiate itself among numerous players while addressing scalability challenges [14][15] Stock Performance - IonQ's stock has increased by 442.8% over the past year and 54.2% in the last three months, while Rigetti's stock surged 1,116.4% year-over-year and 75.5% over the past three months [16] - IonQ's market capitalization is approximately $12.3 billion with a forward price/sales ratio of 98.14, indicating high growth expectations [19][20] - Rigetti's market cap is around $5 billion, with a significantly higher forward price/sales ratio of 236.36, reflecting investor excitement but also vulnerability to execution risks [20] Financial Estimates - For IonQ, the consensus estimate for 2025 loss per share has widened to 60 cents, but revenue is expected to grow by 97.3% year-over-year [21] - Rigetti's consensus estimate for 2025 loss per share remains at 5 cents, with a projected revenue decline of 18.6% year-over-year [24] Conclusion - IonQ appears to have a stronger investment profile for 2025, with more revenue generation, commercial deals, and a larger cash reserve compared to Rigetti [26][28] - IonQ's strategy of integrating quantum computing with networking expands its market potential, while Rigetti's focus on long-term processor development may delay returns [26][28]

Core Viewpoint - The quantum computing industry presents significant investment opportunities, with IonQ and Rigetti Computing as key players, each employing different technologies to develop quantum computers [1][2]. Company Summaries IonQ - IonQ utilizes ion-based technology for its quantum machines, which can operate at room temperature and have lower error correction rates, making scalability more feasible [10][12]. - The company reported a Q1 operating loss of $75.7 million on revenue of $7.6 million, an increase from the previous year's loss of $52.9 million [12]. - IonQ aims for revenue growth, projecting sales of $75 million to $95 million in 2025, a significant increase from 2024's revenue of $43.1 million, which saw a 95% year-over-year rise [12][17]. - IonQ's stock is considered a better value compared to Rigetti, despite its high price-to-sales (P/S) ratio exceeding 200 [15][17]. Rigetti Computing - Rigetti employs superconducting qubits, a well-established method that allows for faster calculations but requires expensive cryogenic equipment to maintain operational stability [5][7]. - The company faced a Q1 operating loss of $21.6 million on sales of $1.5 million, with a 52% year-over-year revenue decline [8]. - Rigetti executed a $350 million equity offering, resulting in a cash reserve of $575 million with no debt as of June 11, which is expected to support its operations in the short term [8][9]. - The stock's price-to-sales (P/S) ratio has surged, indicating it may be overpriced compared to IonQ [15]. Industry Insights - The quantum computing market was valued at $4 billion in 2024, with projections estimating growth to $72 billion by 2035, highlighting the industry's potential [16].

Core Insights - The quantum computing arms race is intensifying, with Rigetti Computing experiencing a significant stock increase of approximately 40% in July, driven by a breakthrough announcement regarding its Ankaa-3 system [1][2]. Company Developments - Rigetti Computing announced a breakthrough with its Ankaa-3 system, which consists of four 9-qubit chips achieving a two-qubit gate fidelity of 99.5%, indicating a high level of accuracy in calculations [4][6]. - The Ankaa-3 system is claimed to be the largest multichip quantum computer available, positioning Rigetti in a leadership role, although competitors have better fidelity scores [6]. Market Potential - Rigetti estimates that annual demand for quantum computing will range from $1 billion to $2 billion before 2030, primarily driven by research institutions, with projections of growth to $15 billion to $30 billion post-2030 [8]. - With a current market capitalization of approximately $5 billion, capturing a fraction of the projected market opportunity could potentially double or triple Rigetti's stock value by 2030 [9][10].

Group 1 - Several stocks in the quantum computing sector, including IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing, are trading at historically high valuations, with significant price increases over the past year [1][2] - IonQ's stock has risen by 517%, while Rigetti, D-Wave, and Quantum Computing have surged by at least 1,500% as of July 21 [2] - The valuation multiples of these quantum computing stocks are significantly higher than those seen during previous market bubbles, such as the dot-com and COVID-19 bubbles [5][6] Group 2 - IonQ, Rigetti, D-Wave, and Quantum Computing are trading at historically high price-to-sales (P/S) multiples, raising concerns about a potential bubble [6][7] - Other AI companies exploring quantum computing, like Nvidia, Amazon, Alphabet, and Microsoft, have more reasonable valuation multiples compared to the smaller quantum computing players [6][7] - Recent capital raises by these companies, including IonQ's $1 billion stock issuance and Rigetti's $350 million capital raise, suggest management may be capitalizing on inflated market conditions [10][12] Group 3 - The quantum computing industry is characterized as research-heavy and capital-intensive, indicating that management's capital-raising efforts may reflect a belief that current price levels are unsustainable [12][13] - Historical trends suggest that a major correction could be imminent for smaller quantum computing stocks, as issuing stock to raise funds is not a sustainable long-term strategy [14] - For investors seeking exposure to quantum computing, it may be more prudent to consider diversified opportunities in larger tech companies rather than smaller, speculative players [15]

Company Performance - Rigetti Computing, Inc. (RGTI) closed at $15.44, reflecting a -3.2% change from the previous day, underperforming the S&P 500's daily gain of 0.4% [1] - The company's stock has increased by 43.56% over the past month, significantly outperforming the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61% [1] Upcoming Earnings - Rigetti Computing is set to disclose its earnings on August 12, 2025, with an expected EPS of -$0.06, representing a 14.29% increase from the same quarter last year [2] - The consensus estimate for revenue is $1.91 million, indicating a 38.19% decline compared to the same quarter of the previous year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates project an EPS of -$0.05 and revenue of $8.78 million, reflecting changes of +86.11% and -18.63% from the prior year, respectively [3] - Recent adjustments to analyst estimates indicate a dynamic business environment, with positive revisions suggesting analyst optimism about the company's profitability [3] Analyst Ratings - The Zacks Rank system, which evaluates estimated changes, currently assigns Rigetti Computing a rank of 3 (Hold) [5] - Over the past month, the Zacks Consensus EPS estimate has increased by 1.92% [5] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 79, placing it in the top 32% 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]