Rigetti Computing (NasdaqCM:RGTI) Sees 60% Price Surge Over Last Quarter

In June 2025, Rigetti Computing (NasdaqCM:RGTI) underwent significant index constituent changes and completed a $350 million follow-on equity offering, paralleling a 60% share price climb over the last quarter. The company shifted towards growth-focused indices, aligning its prospects with broader tech stock rallies as indices like the S&P 500 and Nasdaq reached new highs. Rigetti's Q1 earnings report showcased improved net income, contrasting with declining sales, while the S&P 500's broader market rally of 13% over the year and 2.2% weekly gain suggests these strategic maneuvers supported or complemented the general market trends.

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Over the past year, Rigetti Computing achieved an astounding total return exceeding 1262%, setting a remarkable performance backdrop. This impressive appreciation places it ahead of the overall US Market, which returned 13.2%, and the US Semiconductor industry, which posted a 14.4% gain. Such a significant surge underscores the stock's volatility and the market's expectations regarding its future prospects.

Looking forward, the strategic shifts discussed earlier, including the index constituent changes and successful capital raising, could reinforce the revenue and earnings forecasts. Despite the company being unprofitable, a forecasted revenue growth of 40.4% per year highlights its potential. Meanwhile, the share price increase narrows the gap to the consensus price target of US$14.83, suggesting the market is leaning toward a positive outlook about the company's valuation. However, the current elevated Price-To-Book Ratio indicates a higher valuation than industry peers, which investors may need to consider carefully.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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