Rigetti Computing (RGTI): Evaluating Valuation Following NVIDIA NVQLink Partnership and Quantum Demo Reveal

Rigetti Computing (RGTI) is drawing investor attention after announcing support for NVIDIA’s NVQLink, an open platform that connects AI supercomputing with quantum computers. The partnership was highlighted at NVIDIA GTC in Washington, D.C., where a live demonstration of Rigetti’s quantum hardware took place.

See our latest analysis for Rigetti Computing.

After a breathtaking rally that sent Rigetti’s 1-year total shareholder return soaring over 3,300%, a wave of profit-taking and a more cautious outlook around government funding have led to sharp pullbacks in the share price recently. While momentum has cooled in the short term, Rigetti’s long-term returns remain extraordinary by any standard, even as investors weigh the risks tied to the company’s sky-high valuation and the uncertain path to widespread quantum computing adoption.

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With the shares coming off their highs and analyst forecasts pointing to significant downside, investors now face a critical decision: is Rigetti a misunderstood bargain in quantum tech, or has the market already priced in years of future growth?

Price-to-Book of 22.9x: Is it justified?

Rigetti shares currently trade at a price-to-book ratio of 22.9x, which is sharply above both the US Semiconductor industry and key peer averages. This elevated valuation calls for a closer look at whether it stands on solid ground or is based on speculative hopes.

The price-to-book ratio compares a company’s market value to its net assets and is commonly used in technology and hardware sectors where tangible assets are an important consideration. For Rigetti, such a high figure raises the question of whether the market expects significant future innovation or is overestimating the company’s prospects in light of its current financials.

Compared to the US Semiconductor industry average of 3.6x and a peer average of just 2.4x, Rigetti’s multiple appears extremely stretched. Unless the company’s future trajectory supports this premium, there may be little margin for error if expectations change.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 22.9x (OVERVALUED)

However, failing to meet growth targets or a shift in investor sentiment could quickly undermine Rigetti's premium valuation and change the bullish narrative.

Find out about the key risks to this Rigetti Computing narrative.

Build Your Own Rigetti Computing Narrative

Curious to see how your analysis stacks up, or have your own take on Rigetti’s future? You can shape your own story and insights from the data in just a few minutes, so why not Do it your way

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.

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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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