Rigetti Computing's Quantum Leap Faces Challenges

Core Viewpoint - Rigetti Computing is focused on developing quantum computing technology but faces significant competition and challenges, leading to a downgrade in its stock rating and concerns about its financial performance [2][6]. Group 1: Company Overview - Rigetti Computing (NASDAQ:RGTI) aims to revolutionize computing through quantum mechanics, targeting faster problem-solving capabilities compared to traditional computers [1]. - The company is currently trading at $16.46, with a market capitalization of approximately $5.43 billion [5]. Group 2: Financial Performance - Rigetti's shares have declined by 23% year-to-date, attributed to a reset in the company's roadmap and disappointing financial results [2][6]. - The company is experiencing declining revenue, compressed gross margins, and ongoing operating losses [4]. Group 3: Product Development and Contracts - The launch of Rigetti's 108-qubit Cepheus system has been delayed to early 2026, raising investor concerns [3]. - Despite setbacks, Rigetti has secured $8.4 million in contracts with India's C-DAC and the U.S. Air Force, providing some medium-term visibility [3][4]. - The company plans to achieve over 150 qubits by 2026 and exceed 1,000 qubits by 2027 [3]. Group 4: Market Sentiment - Cowen & Co. downgraded Rigetti to a "Hold" rating amid the stock's decline and concerns over its financial outlook [2][6]. - The stock has fluctuated between a low of $15.75 and a high of $17.09 in recent trading [5].