This Hot Quantum Computing Stock Keeps Climbing -- Here's What's Driving the Rally

Core Insights - Rigetti Computing has recently achieved sales of two quantum computing systems totaling $5.7 million, indicating its current market presence and technology validation [1] - The company utilizes superconducting qubits, a well-established technology, to compete with major players like IBM and Alphabet [2][3] - Rigetti's stock has surged nearly 200% since early September, driven by increased investor interest and significant announcements from JPMorgan regarding investments in quantum computing [5][6] Company Performance - Rigetti's stock experienced a 25% increase following JPMorgan's announcement of a $10 billion fund for critical industries, including quantum computing [6] - The company is positioned as a pure-play in quantum computing, focusing solely on this technology without diversifying into other areas [4] - The competitive landscape suggests that Rigetti must maintain superior technology to capture market share effectively [8] Market Potential - The total annual value for quantum computing is projected to reach between $15 billion and $30 billion by 2030 to 2040, with Rigetti potentially capturing a 25% market share by 2035 [7][8] - If successful, Rigetti could generate $7.5 billion in annual sales and $2.25 billion in profits, leading to a projected market cap of $67.5 billion in a decade, representing a 350% upside from its current $15 billion market cap [9] Investment Considerations - The rapid increase in Rigetti's stock price raises concerns about a potential hype-cycle bubble, prompting questions about the timing of investments [5][10] - The high-risk, high-reward nature of Rigetti's stock is emphasized, with the possibility of a market downturn affecting future valuations [10][11]