Quantum Computing Sector Overview - The quantum computing sector experienced significant developments this week, with notable advancements from Rigetti Computing and D-Wave Quantum, as well as commercial activity from Quantum Computing, Inc. and IonQ [1] Rigetti Computing – RGTI - Rigetti Computing achieved a performance breakthrough, reporting a 99.5% median fidelity rate for two-qubit gates on its 36-qubit modular system, leading to a 40% increase in its stock price over the week [2] - The CEO of Rigetti, Subodh Kulkarni, indicated that the company is approximately four years away from achieving quantum advantage, which is expected to drive commercial interest [3] D-Wave Quantum – QBTS - D-Wave Quantum saw its shares rise nearly 30% this week, driven by retail investor interest and a recommendation from CNBC's Jim Cramer to "own" the stock [4] Quantum Computing, Inc. – QUBT - Quantum Computing, Inc. reported an 11% increase in its stock price over the past week, following the announcement of its first commercial sale of quantum security technologies to a top-five U.S. bank, valued at approximately $332,000 [5] IonQ – IONQ - IonQ completed the acquisition of Capella Space and plans to develop a space-based Quantum Key Distribution (QKD) network by integrating Capella's satellite infrastructure with its quantum technology, aiming to enhance secure communications [6] - IonQ is set to report its second-quarter financial results on August 6, with analysts predicting a loss of 27 cents per share and revenue of $17.23 million [7]

Core Insights - Rigetti Computing (RGTI) has achieved a significant technical milestone with 99.5% median two-qubit gate fidelity on a modular 36-qubit system, marking a two-fold improvement in error rate compared to its previous 84-qubit Ankaa-3 system [1][7] - The company is set to launch this new system on August 15, bringing it closer to delivering a platform with over 100 qubits by year-end [2] - Rigetti's modular approach enhances not only qubit counts but also system reliability and manufacturing efficiency, indicating progress towards commercial-grade quantum hardware [3] Company Updates - Rigetti's new 36-qubit system, built from four interconnected 9-qubit chips, demonstrates high-fidelity quantum operations across chip boundaries, a crucial step for scalability [3][7] - The company's shares have increased by 12.3% year-to-date, slightly underperforming the industry growth of 14.7% [6] - Rigetti's price-to-book ratio stands at 24.02, which is above the industry average, and it carries a Value Score of F [9] Earnings Estimates - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests a substantial 86.1% increase compared to the previous year [11] - Current estimates for the upcoming quarters indicate a gradual improvement in earnings, with a year-over-year growth estimate of 14.29% for the current quarter and 25.00% for the next [12]

Group 1: Rigetti Computing - Rigetti Computing, Inc. (RGTI) shares increased by 30.2% to $16.56 in the last trading session, with a higher-than-average trading volume [1] - The stock has gained 10.8% over the past four weeks, driven by advancements in quantum computing, including 99.5% two-qubit gate fidelity and scaling to over 100 qubits, positioning the company for significant growth [1] - The consensus EPS estimate for the upcoming quarter remains unchanged, with expectations of a quarterly loss of $0.06 per share, reflecting a year-over-year change of +14.3% [2][3] Group 2: Industry Context - Rigetti Computing belongs to the Zacks Internet - Software industry, which includes other companies like BigCommerce (BIGC) [3] - BigCommerce's consensus EPS estimate has decreased by 10% over the past month to $0.03, representing a 40% decline from the previous year [4] - Both Rigetti Computing and BigCommerce currently hold a Zacks Rank of 3 (Hold) [3][4]

Core Insights - Rigetti Computing's stock surged 30% on July 16 after achieving 99.5% gate fidelity on its 36-qubit modular system, significantly reducing error rates compared to its previous 84-qubit chip, confirming the scalability of its chiplet-based architecture for practical quantum computing [2] - Despite a remarkable 1,300% increase in stock value over the past year, questions remain about the factors that could drive further growth [2] Modular Architecture Advantage - Rigetti's chiplet strategy addresses scaling issues in quantum computing, maintaining 99.5% fidelity while enabling interconnected modules, positioning the company as a leader in practical large-scale quantum systems [6] - The company has secured a $100 million investment commitment from Rigetti and Quanta over five years, along with an additional $35 million from Quanta, providing manufacturing expertise and funding for large-scale commercialization [6] Government Validation - Rigetti's selection by DARPA's QBI program and its leadership in a consortium enhance its credibility and secure stable revenue streams for utility-scale quantum advancements expected by 2033 [6] Commercial Market Timing - As quantum computing transitions from research to commercial applications, Rigetti's advanced architecture and cloud-based services are poised to capture a significant market share [6] Financial Reality - The company anticipates $10.8 million in revenue for 2024 against operational expenses of $68.5 million, highlighting a heavy reliance on unstable government contracts [6] - Q1 2025 revenue fell by 52% year-over-year to $1.47 million, indicating financial challenges [6] Valuation Risk - Rigetti's current valuation is approximately 400 times its trailing revenues, suggesting potential overvaluation and vulnerability to market sentiment shifts [6] Cash Burn and Execution Risk - The company faces an unsustainable spending rate that necessitates rapid revenue growth, alongside the need to successfully implement its scaling roadmap and demonstrate a quantum advantage [6] Competition - Rigetti competes with well-capitalized technology giants and alternative quantum methodologies, all vying for market share in the quantum computing sector [6] Historical Growth Comparisons - NVIDIA's stock growth from about $8 to over $130 from 2016 to 2024 serves as a relevant comparison for potential growth paths in quantum computing, indicating the transformative potential of the sector [7] - Moderna's stock surge from $20 to over $400 during the COVID-19 vaccine rollout exemplifies how revolutionary applications can lead to explosive growth, similar to potential outcomes for D-Wave's quantum optimization solutions [8] Conclusion - Rigetti represents a high-risk, high-reward opportunity at a critical juncture in quantum computing, with its modular architecture, strategic partnerships, and government endorsements paving the way for potential 10x growth [8][9]

Rigetti Computing (RGTI -1.00%) stock got hit with substantial sell-offs in the first half of this year. The company's share price fell 22.3% across the stretch, according to data from S&P Global Market Intelligence. The stock lost ground even as the S&P 500 (^GSPC 0.26%) saw a 5.5% increase.After skyrocketing 1,449% across 2024's trading, the quantum computing specialist's share price saw a significant pullback in 2025's first half. On the other hand, the stock has been posting big gains in July's trading ...

Core Insights - The quantum computing revolution has accelerated, with significant advancements occurring in a short timeframe, leading to strong stock performance in the sector since late 2024 [1][2] Company Overview - Rigetti Computing has achieved a notable milestone with a 99.5% median 2-qubit gate fidelity on its new 36-qubit modular system, marking a 2x reduction in error rates from previous benchmarks [6] - The company has developed the largest multichip quantum computer in the industry, utilizing a modular architecture that allows for scalability beyond single-chip designs [7] - Rigetti's superconducting qubits operate significantly faster than competing technologies, enhancing the potential for solving complex problems [8] Market Position and Contracts - Rigetti has secured several government contracts, including DARPA's Quantum Benchmarking Initiative worth up to $1 million and a $5.48 million consortium led by the Air Force Office of Scientific Research, indicating growing interest in its technology [10][11] - Strategic partnerships, such as with Nvidia and Quanta Computer, further validate Rigetti's approach and enhance its manufacturing capabilities [12] Financial Health - The company completed a $350 million equity offering, resulting in approximately $575 million in cash with zero debt, providing a solid financial foundation for operations [13] - Q1 2025 revenue was reported at $1.5 million, with operating expenses of $22.1 million quarterly, suggesting a runway of roughly six years at current burn rates [14][15] Industry Outlook - Quantum computing is viewed as a generational opportunity with potential applications across various fields, including drug discovery and financial modeling, which could be worth trillions [16] - Rigetti's modular architecture is one of the viable paths to achieving quantum advantage, although execution risks remain high amid competition from companies like IonQ and IBM [17] - Experts predict that true quantum advantage may be realized between 2026 and 2028, with Rigetti's current fidelity representing significant progress but still facing technical hurdles [18] Investment Considerations - For investors willing to accept substantial risk, Rigetti Computing presents an opportunity to engage with the quantum computing sector, supported by solid technology, adequate funding, and credible partnerships [19]

Group 1: Joby Aviation Inc (JOBY) - Joby Aviation's stock is up 15.3% to $16.08, with a weekly increase of 34.5% and a year-over-year rise of over 117% [2] - The company announced plans to double production at its facilities in Dayton, Ohio, and Marina, California [2] - There is significant contrarian potential, with six out of nine brokerages maintaining "hold" or "strong sell" ratings, and 12.6% of JOBY's total available float sold short [3] Group 2: Rigetti Computing Inc (RGTI) - Rigetti Computing's stock is up 30% to $16.57, marking its best single-session gain since January 14, and is now 1,183% higher year-over-year [4] - The company reported that its 36-Qubit system achieved a mid-year performance of 99.5% median two-qubit gate fidelity, indicating significant progress in quantum computing technology [4] - Despite positive analyst sentiment, options traders are showing pessimism, with a 10-day put/call volume ratio of 0.85, higher than 96% of readings from the past year [5] - 18% of RGTI's total available float is sold short, suggesting that an unwinding of these bearish bets could support the stock's upward momentum [6]

Core Insights - Rigetti Computing's shares have surged by 28.9% amid a generally flat market, indicating strong investor interest following a significant technological milestone [1] - The company has achieved a "99.5% median two-qubit gate fidelity" on its 36-qubit system, effectively halving its previous error rate, which is crucial for the viability of quantum computing outside laboratory settings [2] - Despite this progress, there are concerns that the technology is still a decade away from true commercial application, suggesting that current investor enthusiasm may be premature [4] Company Developments - Rigetti's improvement in gate fidelity represents a critical advancement in quantum computing technology, addressing a major barrier to practical applications [2] - The company is positioned as a leading player in the quantum computing sector, but the long-term viability of its technology remains uncertain [4][5] Investment Considerations - For investors with high risk tolerance, Rigetti is considered one of the more promising quantum computing stocks, but diversification across multiple quantum stocks is recommended due to the unpredictable nature of technology maturation [5] - Current valuations of Rigetti and similar quantum stocks may be too high given the nascent stage of the technology [6]

Group 1: Circle Internet Group - Circle Internet Group (CRCL) is the leading stablecoin issuer in the United States, managing USD Coin (USDC) in partnership with Coinbase Global (COIN) [1] - The company experienced a rise in early trading following President Donald Trump's announcement that 11 of 12 House representatives support the GENIUS Act, which aims to establish a regulatory framework for stablecoins [1] - The GENIUS Act vote is expected to take place on Wednesday afternoon, potentially impacting the regulatory landscape for stablecoins [1] Group 2: Unity Software - Unity Software (U) received an upgrade from Jefferies, with a new price target set at $35, driven by the launch of its AI platform 'Vector' [2] - The 'Vector' platform focuses on optimizing advertising and user acquisition in the mobile gaming industry by analyzing in-game behavior and user patterns [2] - Analysts expect robust double-digit EPS growth for Unity through 2026, indicating strong future performance [2] Group 3: Rigetti Computing - Rigetti Computing (RGTI) achieved a significant performance milestone in quantum computing, reaching a 99.5% median fidelity rate for two-qubit gates on its 36-qubit modular system [4] - This breakthrough represents a twofold improvement in quantum computing capabilities, crucial for developing reliable quantum systems [4] - RGTI shares are anticipated to rise to multi-month highs, potentially influenced by a short squeeze, as approximately 20% of the RGTI float is currently short [4]

Core Insights - Rigetti Computing has achieved a mid-year performance milestone of 99.5% median two-qubit gate fidelity on its modular 36-qubit system, marking a 2x reduction in median two-qubit gate error rate compared to its previous best results on the 84-qubit Ankaa™-3 system [1] - The 36-qubit system, composed of four 9-qubit chiplets, is based on proprietary modular chip technology and is set to launch on August 15, 2025, with plans for a 100+ qubit chiplet-based system by the end of 2025 [1][2] - The company leverages superconducting qubits, which offer gate speeds over 1,000 times faster than other modalities, and has developed proprietary technology to enable scaling to higher qubit count systems [2] Company Overview - Rigetti Computing is a pioneer in full-stack quantum computing, operating quantum computers over the cloud since 2017 and serving various clients through its Rigetti Quantum Cloud Services platform [3] - The company began selling on-premises quantum computing systems in 2021, with qubit counts ranging from 24 to 84, and introduced the 9-qubit Novera™ QPU in 2023 to support R&D communities [3] - Rigetti has developed the industry's first multi-chip quantum processor for scalable systems and manufactures its chips in-house at Fab-1, the first dedicated quantum device manufacturing facility [3]