Why Is Rigetti Stock Soaring 70%?

Rigetti Computing (NASDAQ: RGTI), a quantum computing company, surged 15% on July 2 — a sharp move that capped a nearly 70% gain over the past four months. The latest jump came after Cantor Fitzgerald initiated coverage with an Overweight rating and a $15 price target, implying further upside of roughly 19% from current levels.

Rigetti’s one-day jump was part of a broader move in the sector — IONQ (NYSE: IONQ) up 12%, while D-Wave Quantum (NYSE: QBTS) — as expectations of Fed rate cuts and a new U.S.–Vietnam trade deal boosted risk appetite. Overlay that with growing U.S. government investment in quantum ($2.7 billion committed recently), and the setup for speculative tech names like Rigetti looks stronger.

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Why Investors Are Watching?

Rigetti designs superconducting quantum processors and offers cloud-based Quantum Computing as a Service (QCaaS). It’s also behind Ankaa-3, an 84-qubit system boasting improved fidelity and error rates. The strategy is clear: move from single-chip systems to multi-chip modules, culminating in 100+ qubit machines—and laying groundwork for  336‑Qubit Lyra in 2026. Their approach is supported by advanced fabrication (ABAA) and strong external collaborations, positioning RGTI to make meaningful strides toward practical quantum computing.

Hype Outpaces Revenue

Here’s the reality check. Despite the tech milestones, Rigetti is firmly in R&D mode. CEO Subodh Kulkarni has said commercial demand is still 3–5 years away, and widespread adoption could take a decade.

That makes Rigetti’s valuation eye-popping:

• It trades at 478x expected 2025 sales

• Q1 2025 revenue dropped 50% y-o-y to just $1.5 million, while operating losses hit $21.6 million

Even so, the company is well-capitalized, holding over $575 million in cash, boosted by a $350 million equity raise and a $250 million Quanta partnership. No debt. Long runway. Big ambitions.

Competitive Position: Strong but Crowded

Rigetti’s full-stack approach is handling everything from chip design to cloud access — gives it agility versus quantum competitors like IBM, IonQ, and Google. Its Quanta partnership further boosts commercialization prospects. However, advances by Google’s Willow chip and Amazon’s Quantum Embark program signal growing competition in this space.

The Bottom Line

Rigetti is one of the more exciting players in quantum computing, with credible tech, solid partnerships, and a strong balance sheet. But investors must recognize this for what it is: a high-risk, high-reward speculation in an industry that may take a decade to mature.

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