Rigetti Computing Surges on Investor Optimism About Quantum Computing’s Future

Published: 21 Jun 2025

Rigetti Computing, one of the best companies in the world of quantum computing, has seen its stock go up lately, driven, it seems, by a surge of investor confidence in the future of (and in Rigetti’s being a principal player in) the development of this still-nascent technology.

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As this industry moves from the theoretical research stage to that of practical application, investors are waging confidence that Rigetti will deliver some groundbreaking, practical, game-changing advancements.

Table of Content

Recent Stock Performance
Factors Driving Investor Optimism
Challenges and Risks
1. Financial Concerns
2. Market Competition
Conclusion

Recent Stock Performance

The stock of Rigetti Computing has skyrocketed by 32.64%, hitting $13.039 as of January 21, 2025. This surge is really based on the renewed enthusiasm in the sector of quantum computing, which excitement is really grounded in the rapid development of Rigetti’s own technology and a big uptick in government interest in projects in the space. Analysts across the board have heaped on the praise. B. Riley analyst Craig Ellis, for instance, has raised his price target to $8.50 while still sticking with a Buy rating.

Factors Driving Investor Optimism

Several key factors have caused Rigetti’s recent stock surge.

1. Progress in Quantum Technology

Rigetti has made significant strides in the development of quantum systems that are capable of performing tasks beyond the reach of today’s supercomputers and even the most powerful classical computers, such as the exaflop machines. This is putting Rigetti in a leading position among the companies of the still-emergent field of quantum computing and is holding out the promise of substantial progress in that space.

2. Government Interest and Contracts

Rigetti finds itself in an advantageous position for winning big contracts, and there’s a lot of interest from the federal government. Why? Because the nation’s capital wants to know what we can do with quantum computing. And we’re one of the few outfits in the country actually doing something. A big outfit with a lot of backing, namely, the National Security Agency.

3. Financial Strength and Capital Raises

Recent capital raises in late 2024 have bolstered Rigetti’s finances and put its cash concerns to rest. Investors have taken heart that the company can and will continue in its current state—that is, R&D and product development, mostly in California, with some work in Colorado.

4. Trends in the Market and Competitive Environment

Quantum computing is gaining momentum as businesses seek solutions to the complex problems that lie beyond the scope of traditional AI applications. Rigetti finds itself very strategically positioned within this development tech landscape, and that is a large part of the reason investors hold a bullish posture on its stock.

Challenges and Risks

There is a lot of optimism surrounding Rigetti, but it has a lot of tests to pass. There are still a number of obstacles to overcome if people are going to be able to use Rigetti’s quantum computers in anything approaching everyday life. Even this very young field of study has a number of technical problems still to solve.

Financial Concerns

Rigetti isn’t making money, and that’s bad. Its finances have something called an EBIT margin, which is like a profit margin, only better, because it doesn’t even bother to include the costs of making the thing you’re selling in the calculations. The EBIT margin is -431.1%, which is slightly better than -100%, in that you’re only losing 4.31 times what you bring in, instead of losing everything you bring in. The EBIT margin, then, is a big red flag.

Market Competition

Rivals such as NVIDIA look into quantum computing, creating a competitive landscape that Rigetti must negotiate.

Conclusion

The latest surge in Rigetti Computing’s stock illustrates how confident investors are in the future of quantum computing. Why? Because the tech is getting better, and there’s a boatload of both private and public cash that’s backing Rigetti these days.

If you probe a little deeper into Rigetti’s tale, you also uncover a risk factor for investors: Even with the company tightening up its loss-cutting measures, the prospects for future losses seem to be substantial, given how 1) the company’s plans are incredibly ambitious and 2) the entire quantum computing business is so up in the air right now.

The journey promised by Rigetti will attract the close scrutiny of experts and investors as quantum computing continues to evolve. A key factor in determining the long-term viability of the company will be whether it can maintain its current momentum and deliver on the incredibly ambitious plans that it has laid out.