Rigetti Computing (RGTI, Financial) has successfully reached a significant milestone in its quantum computing efforts, achieving a 99.5% median two-qubit gate fidelity in its modular 36-qubit system. This marks a substantial improvement, halving the median two-qubit gate error rate compared to its previous 84-qubit single chip Ankaa-3 system. The new system comprises four interconnected 9-qubit chips, known as "chiplets," which leverage Rigetti’s innovative modular chip technology. This development is a critical step towards the company's goal of creating a 100+ qubit chiplet-based system.
The 36-qubit system is scheduled for launch on August 15, with Rigetti aiming to unveil its 100+ qubit chiplet-based system with the same high fidelity of 99.5% before the close of 2025. This advancement underscores Rigetti's progress in the competitive field of quantum computing, positioning the company for further expansion and achievements.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Rigetti Computing Inc (RGTI, Financial) is $14.83 with a high estimate of $16.00 and a low estimate of $14.00. The average target implies an upside of 16.61% from the current price of $12.72. More detailed estimate data can be found on the Rigetti Computing Inc (RGTI) Forecast page.
Based on the consensus recommendation from 7 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 $0.80, suggesting a downside of 93.71% from the current price of $12.72. 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: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rigetti Computing Inc (RGTI, Financial) has been selected to participate in DARPA's quantum benchmarking initiative, advancing their utility scale quantum computer concept.
- The company received an AFOSR award to further develop their breakthrough chip fabrication technology, ABAA, in collaboration with prestigious institutions.
- Rigetti Computing Inc (RGTI) was awarded three Innovate UK Quantum Miss Pilot Awards to advance superconducting quantum computing.
- The company successfully demonstrated optical control of a superconducting qubit, which could significantly aid in scaling quantum systems.
- Rigetti Computing Inc (RGTI) closed a strategic investment deal with Quanta Computer Inc, securing approximately $35 million.
Negative Points
- Revenues in the first quarter of 2025 were $1.5 million, a decrease from $3.1 million in the first quarter of 2024.
- Gross margins dropped to 30% in Q1 2025 from 49% in Q1 2024, partly due to lower margin contracts.
- Operating expenses increased to $22.1 million in Q1 2025 from $18.1 million in the prior year, driven by salary increases and stock compensation expenses.
- The company reported an operating loss of $21.6 million for Q1 2025, up from $16.6 million in the previous year.
- The passage and appropriation of the NQI reauthorization bill, which is crucial for funding, has been delayed, impacting potential sales and funding opportunities.
