Rigetti Computing: Time to Buy?

Group 1: Company Overview - Rigetti Computing has a market cap of $5.3 billion, trading at 670 times trailing sales while generating only $1.8 million in quarterly revenue and incurring losses of nearly $40 million per quarter [1][12]. - The company has seen a significant stock surge of 1,820% over the past 12 months, outperforming competitors like D-Wave Quantum and IonQ [1]. Group 2: Financial Performance - In Q2 2025, Rigetti's revenue fell to $1.8 million from $3.1 million a year ago, attributed to contract timing, with operating losses of $19.9 million highlighting the capital-intensive nature of the quantum computing field [6]. - Rigetti raised $350 million in Q2, ending the quarter with $571.6 million in cash and no debt, providing financial stability through 2026 [12]. Group 3: Technological Advancements - Rigetti's modular 36-qubit system achieved 99.5% median two-qubit gate fidelity, significantly improving performance by halving errors from previous models [4]. - The company's superconducting qubits operate at near absolute zero, allowing for faster operations compared to rival platforms, although competitors may offer higher fidelities and longer lifetimes [5]. Group 4: Government Support and Market Potential - Rigetti has been selected by DARPA for its Quantum Benchmarking Initiative, indicating strong government validation and support for its technology [7]. - The U.S. government is advancing significant funding initiatives for quantum computing, with approximately $2.7 billion from the National Quantum Initiative and $2.5 billion from the Department of Energy [8][9]. Group 5: Competitive Landscape - Rigetti's modular design approach is seen as a competitive advantage, allowing it to avoid yield issues associated with single-chip designs [10][11]. - The current valuation of Rigetti at 495 times trailing sales is starkly higher than traditional semiconductor companies like Nvidia, which trades at approximately 40 times forward earnings [13].