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While RGTI has appreciated 96.9%, Salesforce, IBM and Alphabet have gained 28.8%, 38.2% and 20%, respectively, in the year-to-date period. The broader sector appreciated 27.6% over the same timeframe.
RGTI has also outperformed the Zacks Internet - Software industry, which has returned 31.2% year to date.
The outperformance can be attributed to RGTI’s expanding clientele and its growing influence in the quantum computing space.
YTD Performance
Image Source: Zacks Investment Research
Expanding Portfolio Aids RGTI’s Prospects
Rigetti’s advancement in quantum computing technology has been a major growth driver for its success.
In the third quarter of 2024, the company introduced a new modular system architecture. It plans to release a 36-qubit system by mid-2025 and a 100-qubit system by the end of 2025.
RGTI also demonstrated notable progress with its quantum chips, achieving 99.4% median 2-qubit gate fidelity on its 9-qubit chips, which is critical for scaling up its quantum systems.
Further expanding its portfolio in the third quarter of 2024, RGTI introduced the Alternating Bias-Assisted Annealing technique, which allows the company to precisely target cubic frequencies in its quantum processors. This technique enhances the fidelity and performance of its quantum processors, playing an important role in its multi-chip architecture and scaling efforts.
RGTI’s modular chip architecture, which enables efficient scaling by linking multiple identical chips, offers a scalable pathway to higher-qubit quantum processors. By leveraging this modular approach, Rigetti is positioning itself to meet the increasing market demand for scalable quantum systems, supporting future product expansions and solidifying its place as a leader in the quantum computing industry.
As the quantum computing market continues to evolve, RGTI is poised to benefit from its growth. Per a Grand View Research report, quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030.
RGTI Benefits From Expanding Clientele
Rigetti’s partnerships with Riverlane, NQCC and collaborations on quantum machine learning with NVIDIA (NVDA - Free Report) and Quantum Machines have been major growth drivers.
Rigetti’s partnership with Riverlane to develop quantum error correction (QEC) technology has been noteworthy. In the third quarter of 2024, Rigetti and Riverlane published a paper demonstrating real-time low-latency QEC in Rigetti’s 84-qubit Ankaa 2 system. This advancement is crucial for improving the stability and reliability of quantum computing, as error correction is a major challenge in quantum computing.
RGTI has showcased its Nuvera QPU in a reinforcement learning project at Institute of Electrical and Electronics Engineers Quantum Week, showcasing its leadership in quantum computing and machine learning with support from NVIDIA’s Grace Hopper Superchip Servers and Quantum Machines OPX1000 control system.
Rigetti’s 24-qubit Ankaa-class system is now part of the newly opened National Quantum Computing Centre facility in the UK. This partnership benefits Rigetti, as its technology will be used by NQCC researchers to test and benchmark quantum systems, raising its profile in the international quantum research community.
RGTI Shares – Buy, Sell or Hold?
Rigetti’s advancements in quantum processors and modular chip architecture are continuously benefiting the company’s top-line growth.
However, challenging macroeconomic uncertainties and intense competition in the rapidly evolving and highly competitive quantum computing market are expected to hurt RGTI’s financial performance.
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $2.40 million, indicating a decline of 28.99% year over year.
The consensus mark for earnings is currently pegged at a loss of 8 cents per share, unchanged over the past 30 days. This figure indicates an 11.11% increase from the year-ago quarter’s reported figure.
Image: Bigstock
RGTI Surges 97% YTD: Should You Buy, Hold or Sell the Stock?
Rigetti Computing (RGTI - Free Report) shares have outperformed the Zacks Computer & Technology sector and its peers Salesforce, International Business Machines (IBM - Free Report) and Alphabet (GOOGL - Free Report) in the year-to-date period.
While RGTI has appreciated 96.9%, Salesforce, IBM and Alphabet have gained 28.8%, 38.2% and 20%, respectively, in the year-to-date period. The broader sector appreciated 27.6% over the same timeframe.
RGTI has also outperformed the Zacks Internet - Software industry, which has returned 31.2% year to date.
The outperformance can be attributed to RGTI’s expanding clientele and its growing influence in the quantum computing space.
YTD Performance
Image Source: Zacks Investment Research
Expanding Portfolio Aids RGTI’s Prospects
Rigetti’s advancement in quantum computing technology has been a major growth driver for its success.
In the third quarter of 2024, the company introduced a new modular system architecture. It plans to release a 36-qubit system by mid-2025 and a 100-qubit system by the end of 2025.
RGTI also demonstrated notable progress with its quantum chips, achieving 99.4% median 2-qubit gate fidelity on its 9-qubit chips, which is critical for scaling up its quantum systems.
Further expanding its portfolio in the third quarter of 2024, RGTI introduced the Alternating Bias-Assisted Annealing technique, which allows the company to precisely target cubic frequencies in its quantum processors. This technique enhances the fidelity and performance of its quantum processors, playing an important role in its multi-chip architecture and scaling efforts.
RGTI’s modular chip architecture, which enables efficient scaling by linking multiple identical chips, offers a scalable pathway to higher-qubit quantum processors. By leveraging this modular approach, Rigetti is positioning itself to meet the increasing market demand for scalable quantum systems, supporting future product expansions and solidifying its place as a leader in the quantum computing industry.
As the quantum computing market continues to evolve, RGTI is poised to benefit from its growth. Per a Grand View Research report, quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030.
RGTI Benefits From Expanding Clientele
Rigetti’s partnerships with Riverlane, NQCC and collaborations on quantum machine learning with NVIDIA (NVDA - Free Report) and Quantum Machines have been major growth drivers.
Rigetti’s partnership with Riverlane to develop quantum error correction (QEC) technology has been noteworthy. In the third quarter of 2024, Rigetti and Riverlane published a paper demonstrating real-time low-latency QEC in Rigetti’s 84-qubit Ankaa 2 system. This advancement is crucial for improving the stability and reliability of quantum computing, as error correction is a major challenge in quantum computing.
RGTI has showcased its Nuvera QPU in a reinforcement learning project at Institute of Electrical and Electronics Engineers Quantum Week, showcasing its leadership in quantum computing and machine learning with support from NVIDIA’s Grace Hopper Superchip Servers and Quantum Machines OPX1000 control system.
Rigetti’s 24-qubit Ankaa-class system is now part of the newly opened National Quantum Computing Centre facility in the UK. This partnership benefits Rigetti, as its technology will be used by NQCC researchers to test and benchmark quantum systems, raising its profile in the international quantum research community.
RGTI Shares – Buy, Sell or Hold?
Rigetti’s advancements in quantum processors and modular chip architecture are continuously benefiting the company’s top-line growth.
However, challenging macroeconomic uncertainties and intense competition in the rapidly evolving and highly competitive quantum computing market are expected to hurt RGTI’s financial performance.
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $2.40 million, indicating a decline of 28.99% year over year.
The consensus mark for earnings is currently pegged at a loss of 8 cents per share, unchanged over the past 30 days. This figure indicates an 11.11% increase from the year-ago quarter’s reported figure.
Rigetti Computing, Inc. Price and Consensus
Rigetti Computing, Inc. price-consensus-chart | Rigetti Computing, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
RGTI stock is not so cheap, as suggested by the Value Score of F.
In terms of the forward 12-month Price/Sales, RGTI is trading at 35.50X, higher than the sector’s 3.02X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Currently, Rigetti carries a Zacks Rank #3 (Hold), implying that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.