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Rigetti Computing Up 14% Post Q4 Earnings: Is the Stock a Buy?
RGTIRigetti(RGTI) ZACKS·2025-03-10 17:45

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 2.3million,missingtheZacksConsensusEstimateby5.252.3 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 35millioninRGTIthroughasharepurchase,pendingregulatoryapproval[8]MarketOutlook−TheglobalquantumcomputingmarketisprojectedtogrowataCAGRof20.535 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]