Is Rigetti Computing Stock a Buy Now?

Core Insights - Rigetti Computing has experienced significant stock volatility, down 61% from its 52-week high but up 362% over the past year, reflecting the unpredictable nature of quantum systems [1] - The company is well-positioned to capitalize on recent advances in quantum technology, with 2025 expected to be a pivotal year for growth [2][3] Industry Overview - Quantum computing is emerging as a critical theme in the stock market, with major tech companies like Alphabet and Microsoft investing heavily, and the market is projected to grow to between $90 billion and $170 billion by 2040 [4] - Rigetti, founded in 2013, is recognized as a pioneer in the quantum computing space, utilizing a vertically integrated model that includes in-house chip design and a quantum cloud services platform [5] Technological Developments - Rigetti has been offering cloud-based access to its quantum systems since 2017, achieving performance improvements and validating its technology through partnerships with organizations like NASA and Amazon [6] - Anticipation is building for the launch of Rigetti's new modular quantum system in Q2 2025, which is expected to significantly enhance its capabilities [7] Financial Performance - The company's financial results have shown mixed trends, with a projected revenue decline of 8.4% for 2024 and an EPS loss of -$0.29, indicating limited commercial momentum [9] - However, 2025 is forecasted to see a revenue increase of 42% to $15.6 million, with a modest narrowing of the EPS loss to -$0.20 [10][12] Valuation Concerns - Rigetti's market capitalization stands at $2.4 billion, with a forward price-to-sales ratio of 154 times the consensus 2025 revenue, indicating a high valuation that may already reflect future growth potential [11]