Rigetti(US:RGTI) The Motley Fool·2025-12-07 08:55Core Viewpoint - Rigetti Computing has experienced a significant increase in stock price, rising 2,750% since January 2024, indicating strong market interest and potential undervaluation by analysts [1][2] Company Overview - Rigetti Computing specializes in superconducting quantum computing, utilizing superconducting circuits cooled to near absolute zero to create qubits, which are essential for quantum systems [4][5] - The company has a competitive advantage through vertical integration, controlling much of its supply chain, including the manufacturing of quantum processing units (QPUs) and the development of the necessary hardware and software for cloud-based quantum services [6] Competitive Advantages - Rigetti has developed the first multichip QPU, which consists of multiple small quantum chips linked together, providing an edge in building large-scale fault-tolerant quantum systems [7] - The unique properties of qubits, such as superposition and entanglement, allow quantum computers to tackle complex problems beyond the capabilities of classical computers [5] Market Potential and Challenges - Rigetti anticipates that its quantum computers will eventually address challenges in various fields, including finance, materials science, climate simulation, and logistics optimization [8] - However, widespread adoption of quantum computers is projected to be one or two decades away due to the current inability to construct fault-tolerant systems on a large scale [8][10] Current Valuation and Analyst Sentiment - Rigetti's current market capitalization is approximately $9 billion, with a share price of $28, reflecting a price-to-sales ratio of 1,080, which is considered excessively high compared to industry standards [11][12] - Despite the high valuation, analysts maintain a median target price of $40 per share, suggesting a potential upside of 42% from the current price, indicating optimism about future growth [2][12]