Is Rigetti Computing Stock Still a Buy?

Group 1 - Quantum computing stocks, particularly Rigetti Computing, have seen significant gains, with Rigetti's stock surging about 100% year to date due to technical milestones and government contracts [1] - Rigetti recently launched a 36-qubit modular system achieving 99.5% median 2-qubit gate fidelity, a notable improvement from six months ago [4] - The company secured a $5.8 million contract with the Air Force, enhancing its credibility and highlighting the strategic importance of its technology [5] Group 2 - Despite the stock surge, Rigetti's fundamentals are concerning, with revenue dropping to $1.8 million last quarter from $3.1 million a year earlier, and the company burning nearly $40 million quarterly [2] - The stock is valued at 990 times trailing sales, indicating that investors are anticipating a rapid transition of quantum computing from experimental to commercial viability [2][7] - Rigetti's commercial traction remains minimal, despite the technical achievements and government contracts, raising questions about the sustainability of its growth [6][7]