Quantum Breakthrough and Federal Support Could Be a Game Changer for Rigetti Computing (RGTI)

• Rigetti Computing recently announced a breakthrough with its Ankaa-3 platform, achieving a 99.5% two-qubit gate fidelity, while federal initiatives like DARPA’s Quantum Benchmark Initiative have increased attention on the quantum computing sector.
• This progress highlights the ongoing competition among quantum computing companies, each leveraging different technologies and government-backed research opportunities to advance the field.
• We'll explore how Rigetti's technical milestone and heightened federal support may influence its long-term investment narrative.

Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

What Is Rigetti Computing's Investment Narrative?

For anyone considering Rigetti Computing, the foundational belief is in a future where quantum hardware breakthroughs finally translate into commercial value. The latest Ankaa-3 milestone and a jump in the share price after boosted analyst enthusiasm both underscore short-term interest tied to technical progress and growing federal support. Yet, it’s clear that despite this excitement, Rigetti remains unprofitable and isn’t expected to break even in the next three years, a major risk remains that fresh milestones may not translate immediately into revenues or sustainable profitability. The company’s recent $350 million equity raise improves its liquidity position, potentially extending its runway, but this comes after significant shareholder dilution. The sector’s volatility and fast-moving competitors mean these technical achievements may only temporarily shift Rigetti’s risk profile and short-term narrative unless backed by real commercial traction.

On the other hand, reliance on further funding remains a reality that investors should be aware of.

The valuation report we've compiled suggests that Rigetti Computing's current price could be inflated.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for Rigetti cover nearly US$0.13 to US$24.50, reflecting 31 different perspectives. While technical breakthroughs contribute to excitement, persistent losses and dilution are shaping many investors’ outlooks, contrasting interpretations worth exploring further.

Explore 31 other fair value estimates on Rigetti Computing - why the stock might be worth less than half the current price!

Build Your Own Rigetti Computing Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rigetti Computing research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Rigetti Computing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rigetti Computing's overall financial health at a glance.

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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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