Core Insights - Quantum computing stocks, particularly Rigetti Computing, have seen significant interest in 2025, driven by the potential of quantum technology to solve complex problems in various fields [1][3] - Despite the excitement, many quantum computers, including those from Rigetti, still face high error rates, hindering their practical application [2] - Rigetti's stock has more than doubled in the past year, reaching a market capitalization of $8.5 billion, but concerns about its revenue and valuation suggest a potential decline in 2026 [3][14] Company Overview - Rigetti Computing, founded in 2013, has developed a vertically integrated supply chain, including its own fabrication facility for quantum chips and a proprietary quantum programming language called Quil [5] - The company has created a cloud computing platform for businesses to access quantum computing resources, which enhances its competitive edge [5] - Rigetti's Cepheus-1-36Q multichip quantum computer boasts a high fidelity of 99.5%, indicating its potential for practical applications [6][8] Financial Performance - In the first three quarters of 2025, Rigetti generated only $5.2 million in revenue, a 39% decrease from the same period in 2024, raising concerns about its financial sustainability [9] - The company reported a net loss of $198 million during the same period, with ongoing increases in operating expenses despite declining revenues [11] - Rigetti has secured purchase orders that could generate $5.7 million in revenue in the first half of 2026, providing a potential for growth [10] Valuation Concerns - Rigetti's stock is currently trading at a price-to-sales (P/S) ratio of 1,010, which is deemed unsustainable compared to industry peers like Nvidia and Palantir Technologies [14][16] - The significant premium on Rigetti's valuation, combined with its minimal revenue and substantial losses, raises red flags for investors [16] - The stock has already decreased by 53% from its peak in October, and further declines are anticipated if the company fails to scale its quantum systems [16]