TLDR
- Rigetti Computing secured a three-year, $5.8 million Air Force Research Laboratory contract to develop quantum networking technology with Dutch startup QphoX
- IonQ signed a memorandum of understanding with the Department of Energy to advance quantum technologies in space deployment
- Rigetti stock jumped 14% to $25.13 on Thursday, approaching all-time highs according to market data
- IonQ recently completed $1.3 billion in acquisitions of Oxford Ionics and Vector Atomic to expand quantum capabilities
- Other quantum stocks also rallied with D-Wave Quantum up 4% and Quantum Computing rising 3.3%
Rigetti Computing stock surged over 14% Thursday after announcing a three-year government contract worth $5.8 million. The California-based quantum chipmaker will partner with the Air Force Research Laboratory to advance quantum networking technology.
The contract pairs Rigetti with QphoX, a Dutch quantum hardware startup. Together they will develop superconducting quantum networking systems that allow quantum computers to communicate over long distances.
Rigetti CEO Subodh Kulkarni described the project as “far-out” research still in the R&D phase. The work combines Rigetti’s superconducting qubit expertise with QphoX’s transduction technology that converts quantum signals from microwave to optical form.
This conversion process is crucial for quantum networking. Superconducting quantum computers operate using microwave signals, while long-distance communication through fiber optics requires optical photons.
“We’re talking about the ability to transfer information from one computer to another in the quantum state,” Kulkarni told Barron’s. He believes this technology could integrate quantum computers into data centers within five to 10 years.
Government Backing Expands
The Air Force award represents Rigetti’s third contract with the military branch. The company was also selected earlier this year for a federal program evaluating quantum computing’s long-term prospects.
Kulkarni expressed cautious optimism about advancing to the next stage of that project. The growing government support reflects rising interest in quantum technology for national security applications.
IonQ also secured government backing this week. The quantum computing company signed a memorandum of understanding with the Department of Energy to deploy quantum technologies in space.
This announcement followed IonQ’s completion of two major acquisitions. The company bought Oxford Ionics and entered an agreement to acquire Vector Atomic in deals worth a collective $1.3 billion.
IonQ CEO Niccolo de Masi said the acquisitions broaden capabilities across quantum computing, sensing, and networking. He claimed the moves make IonQ “the most comprehensive quantum platform” across multiple environments.
Quantum Sector Rally
The positive news lifted the entire quantum computing sector Thursday. Rigetti shares climbed to $25.13, putting the stock on track for an all-time high.
IonQ gained 6.9% while D-Wave Quantum rose 4% and Quantum Computing increased 3.3%. The broader rally shows investor enthusiasm for quantum technology developments.
Major tech companies continue investing in the quantum space. Nvidia’s venture arm NVentures has backed QuEra, Quantinuum, and PsiQuantum.
Wall Street Outlook
Despite Thursday’s rally, Wall Street analysts maintain mixed views on Rigetti’s valuation. The stock carries a Strong Buy consensus rating based on seven analyst recommendations.
However, the average price target of $18.83 suggests potential downside from current levels. This disconnect highlights the volatility often seen in emerging technology stocks.
Rigetti’s partnership with QphoX aims to solve critical technical challenges in quantum networking. The work focuses on creating hybrid systems that can transmit quantum information reliably over long distances.
