QphoX B.V., Rigetti Computing (RGTI, Financial), and the National Quantum Computing Centre (NQCC) have secured an international grant aimed at advancing the optical readout of superconducting qubits. This collaboration previously demonstrated success in utilizing light via optical fiber to read a single qubit's state, showcasing the potential of this innovative approach.
The process hinges on converting a microwave readout pulse into an optical signal at cryogenic temperatures, made feasible through microwave-to-optical transduction. Now, the partners are embarking on an ambitious project to fully integrate this optical readout technique into a superconducting quantum computer.
QphoX is tasked with enhancing its optical qubit readout system to seamlessly work with Rigetti's 9-qubit Novera Quantum Processing Unit (QPU). This effort aims to achieve optical readout capability across all qubits within the processor. The integrated system will be established and utilized at the NQCC facility, marking a significant milestone in the development of quantum computing technology.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Rigetti Computing Inc (RGTI, Financial) is $14.80 with a high estimate of $17.00 and a low estimate of $12.00. The average target implies an upside of 52.66% from the current price of $9.70. More detailed estimate data can be found on the Rigetti Computing Inc (RGTI) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Rigetti Computing Inc's (RGTI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rigetti Computing Inc (RGTI, Financial) in one year is $0.92, suggesting a downside of 90.51% from the current price of $9.695. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rigetti Computing Inc (RGTI) Summary page.
RGTI Key Business Developments
Release Date: March 05, 2025
- Revenue: $2.3 million in Q4 2024, down from $3.4 million in Q4 2023.
- Gross Margin: 44% in Q4 2024, compared to 75% in Q4 2023.
- Total Operating Expenses (OpEx): $19.5 million in Q4 2024, compared to $19.7 million in Q4 2023.
- Stock Compensation Expense: $3.4 million in Q4 2024, compared to $3.7 million in Q4 2023.
- Net Loss: $153 million, or $0.68 per share in Q4 2024, compared to $12.6 million, or $0.09 per share in Q4 2023.
- Cash, Cash Equivalents, and Investments: $217.2 million as of December 31, 2024.
- Net Proceeds from Share Sale: $153.3 million from the sale of 88.1 million common shares.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rigetti Computing Inc (RGTI, Financial) entered into a strategic collaboration with Quanta Computer Inc., committing over $100 million each to accelerate superconducting quantum computing development.
- The company sold its first Novera QPU to Montana State University, marking a significant milestone in academic partnerships.
- Rigetti launched the 84-qubit Ankaa-3 system, achieving major 2-qubit gate fidelity milestones with a 99.0% median iSWAP gate fidelity and 99.5% median fidelity with fSim gates.
- AI-powered tools successfully automated the calibration of a Rigetti QPU, showcasing the potential of AI in quantum computer calibration.
- Rigetti's modular approach allows partners to integrate their technology, fostering innovation and flexibility in improving quantum computing capabilities.
Negative Points
- Revenues in the fourth quarter of 2024 decreased to $2.3 million from $3.4 million in the same quarter of 2023.
- Gross margins dropped significantly to 44% in Q4 2024 from 75% in Q4 2023, primarily due to lower-margin contracts.
- The company reported a net loss of $153 million for Q4 2024, a substantial increase from a net loss of $12.6 million in Q4 2023.
- The non-cash change in the fair value of derivative warrant and earn-out liabilities negatively impacted the net loss by $135.1 million.
- Despite the strategic collaboration and funding, Rigetti acknowledges that commercial sales are still four to five years away, indicating a prolonged R&D phase.
