Prepare for Rigetti Computing's Stock Date on August 15th, Stock Enthusiasts
Rigetti Computing, a company at the forefront of quantum computing, is making significant strides in the field, with analysts painting a positive picture for its future. The company's recent advancements, including the development of a scalable 36-qubit system and a substantial cash position, have caught the attention of investors and analysts alike.
Rigetti Computing's modular architecture combines four "chiplets" to create a scalable 36-qubit system, a significant step towards making quantum computing commercially viable. The company's latest achievement, a median two-qubit gate fidelity of 99.5%, significantly cuts error rates compared to previous results, further boosting its potential.
Despite a challenging financial quarter, with an adjusted loss of $0.08 per share and a 52% year-over-year decrease in revenue to $1.5 million, analysts remain optimistic. They project a 28.6% year-over-year improvement in the company's Q2 loss and anticipate a 28.6% year-over-year improvement in revenue for the second half of the year.
Operating expenses for the quarter increased 22% year-over-year to $22.1 million, with R&D spending alone accounting for nearly $15.5 million. However, the company's strong cash position of $237.7 million provides a cushion for these expenses.
The Street-high target for Rigetti Computing is $19, suggesting a potential 36% increase from the current level. Bitrue’s consensus from seven analysts sets an average 2025 price target at $16.20, with a bullish outlook based on technological progress and market adoption, labeling Rigetti a "Strong Buy." B. Riley’s target of $19 represents the highest on record, highlighting optimism despite some caution on current losses and cash flow challenges.
StockAnalysis.com reports a consensus target of $15.00 with a "Strong Buy" rating from 5 analysts, confirming generally positive sentiment albeit with some variation in targets. Public.com shows 71% of analysts recommending a Strong Buy and an average price target around $11.43, though this is lower and may reflect differing analytic models or timing updates.
Rigetti Computing's progress has not gone unnoticed by industry heavyweights. The company was selected for DARPA's high-profile quantum benchmarking program, advancing to Stage A with a $1 million award. The U.S. Air Force granted the company $5.5 million, and Taiwan's Quanta Computer invested $35 million.
Looking ahead, Rigetti Computing plans to officially launch its 36-qubit system on Aug. 15, 2022. The company aims to roll out a system exceeding 100 qubits by the end of 2025, further solidifying its position in the quantum computing market.
In conclusion, most top analysts view Rigetti Computing favorably, with average price targets around $15 to $16 suggesting moderate upside potential over the next 12 months, and some bullish outliers projecting up to $19. The consensus reflects belief in Rigetti’s positioning in the quantum computing market, tempered by the company’s current financial losses and operational risks. As Rigetti Computing continues to make strides in quantum computing, investors and analysts will be closely watching the company's progress and financial performance.
[1] Bitrue Research Report on Rigetti Computing (RGTI) [2] B. Riley Research Report on Rigetti Computing (RGTI) [3] StockAnalysis.com Research Report on Rigetti Computing (RGTI) [4] Public.com Research Report on Rigetti Computing (RGTI)
- The advancements made by Rigetti Computing in the field of quantum computing, such as the development of a scalable 36-qubit system and high two-qubit gate fidelity, indicate a promising future for investing in artificial intelligence and technology-driven businesses that leverage quantum computing.
- Despite its financial losses in Q1, analysts project a significant improvement in Rigetti Computing's financial performance for the second half of the year. This optimism is bolstered by the company's progress in quantum computing, earnings from partnerships, and a strategic plan to commercialize quantum computing with the launch of a 36-qubit system and plans to surpass 100 qubits by 2025.
