TLDR
- Rigetti Computing stock climbed 9% to $46.96 on Thursday while the S&P 500 and Nasdaq declined
- Benchmark increased its price target from $20 to $50, highlighting better cash flow and product expansion
- The company won $11.5 million in contracts including Air Force Research Laboratory partnership and quantum system orders
- Revenue stands at only $1.8 million against $19 million in operating losses
- Stock trades at 1,100 times sales after gaining over 5,000% in one year
Rigetti Computing finished Thursday’s trading session up 9% at $46.96 per share. The quantum computing company moved higher while the broader market declined.
The S&P 500 dropped 0.3% and the Nasdaq Composite fell 0.1%. Rigetti hit an intraday high of 11.5% before trimming gains.
Other quantum computing stocks also posted gains Thursday. The sector showed strength despite market headwinds.
Benchmark Boosts Price Target
Benchmark analysts raised their price target on Rigetti from $20 to $50 per share Tuesday. They maintained a buy rating.
The firm cited improved cash flow management as a key driver. Analysts also pointed to Rigetti’s expanding product lineup and increased support from major tech companies.
The $50 target implies roughly 6% upside from current levels. This comes after a massive 5,000% rally over the past 12 months.
Rigetti pursues a hardware infrastructure model in quantum computing. The company provides chips, processors, and systems that other organizations can use for quantum applications.
The firm also develops Quantum Cloud Services. This platform aims to deliver quantum computing power through traditional cloud infrastructure.
Contract Wins Provide Near-Term Revenue
Rigetti secured a three-year deal worth $5.8 million with the Air Force Research Laboratory. The project focuses on developing advanced chip fabrication technologies.
Iowa State University and the University of Connecticut are also involved in the research partnership. The contract demonstrates government interest in quantum technology development.
Separately, Rigetti announced $5.7 million in purchase orders for two Novera quantum computing systems. Delivery is scheduled for the first half of 2026.
These agreements total $11.5 million in new business. They validate Rigetti’s technical capabilities in the quantum space.
Financial Challenges Persist
The company’s latest results show $1.8 million in revenue. Operating losses reached $19 million in the same period.
Research and development expenses drive the losses. These costs are hard to cut given the experimental nature of quantum technology.
Quantum computing remains in the research phase. Commercial applications are still years away from widespread deployment.
McKinsey estimates the quantum industry could hit $100 billion in a decade. Potential uses include drug discovery, logistics optimization, and materials science.
Current quantum machines serve research purposes rather than generating profits. Sustainable commercialization timelines remain uncertain.
Rigetti’s price-to-sales ratio sits at 1,100. The S&P 500 average is 3.4 by comparison.
The company carries a $15 billion market cap. Its 52-week range spans from $0.74 to $48.23 per share.
Gross margin stands at negative 39.99%. Thursday’s volume reached 2.5 million shares against an average of 63.5 million.
Some investors believe quantum computing will become critical for artificial intelligence and cryptography. Geopolitical competition between the U.S. and China may also be fueling interest in quantum stocks.
Rigetti ended Thursday at $46.96, near its 52-week high despite questions about stretched valuation and the extended path to profitability.
