TLDR
- Rigetti Computing shares surged 25% to $54.91 after JPMorgan’s $10 billion technology initiative announcement
- Stock has gained 185% in one month with market cap hitting $14 billion despite $1.8 million quarterly revenue
- Company secured $5.7 million in quantum computer orders and $5.8 million Air Force contract
- Analysts maintain buy ratings but price targets average $20-24, well below current levels
- CEO highlights growing commercial demand as quantum computing moves toward practical applications
Rigetti Computing stock climbed 25% on October 13 after JPMorgan Chase unveiled a $10 billion “Security and Resiliency Initiative.” The investment spans 27 industries, with quantum computing included as a key focus area.
The rally pushed shares to approximately $54.91. This caps a 185% surge over the past month and a 127% gain year-to-date.
The quantum computing sector rallied together following the news. Competitors D-Wave Quantum and IonQ posted similar gains as institutional investment signals growing confidence in the technology.
Rigetti now carries a market cap of roughly $14 billion. At recent prices, the company trades at about 1,100 times trailing sales.
Trading volume has exploded during the rally. On October 2, shares saw 144 million in volume as retail and institutional investors piled in.
Recent Contract Wins Drive Investor Interest
September brought several catalysts for the stock. On September 30, Rigetti announced $5.7 million in orders for its Novera quantum computers from an Asian tech manufacturer and California AI startup.
The deal equals about 72% of the company’s entire 2024 revenue. Shares jumped 16-19% on the announcement.
Earlier in September, Rigetti won a three-year $5.8 million contract from the U.S. Air Force Research Laboratory. The project focuses on superconducting quantum networking technology in partnership with QphoX.
In August, the company launched its 36-qubit Cepheus-1 processor. The system uses four linked chips and achieves 99.5% two-qubit fidelity.
CEO Subodh Kulkarni called the technology “the clear path towards quantum advantage and fault tolerance.” The processor is available through Rigetti’s cloud platform and Microsoft Azure.
Financial Picture Shows Challenges
Despite stock gains, financials remain weak. Q2 2025 revenue came in at just $1.8 million, down 42% year-over-year from $3.1 million.
The quarterly net loss totaled $39.7 million. Full-year 2024 revenue was $10.8 million against a $201 million loss.
The company burns roughly $20-25 million per quarter. However, Rigetti holds $571.6 million in cash with no debt after a $350 million equity raise.
Analyst Targets Lag Stock Price
All six covering analysts rate Rigetti a buy or strong buy. But average price targets sit around $20-24, roughly 50% below current trading levels.
Benchmark lifted its target to $50 in early October. B. Riley raised its target to $35 in September.
Most other firms maintain targets in the teens or low twenties. The disconnect reflects uncertainty around commercialization timelines.
CNBC’s Jim Cramer called the stock “pure speculation,” saying he doesn’t know whether current valuations make sense.
Strategic partnerships continue expanding Rigetti’s reach. Taiwanese electronics giant Quanta Computer invested $35 million as part of a $100 million collaboration.
In September, Rigetti signed a memorandum with India’s C-DAC to develop hybrid quantum-classical systems. Montana State University installed the company’s first on-premises system at its QCORE lab.
Rigetti designs complete quantum computer systems using superconducting qubits. Customers access quantum processing units through the cloud or purchase on-site units.
JPMorgan’s announcement on October 13 drove the latest rally, with Rigetti closing at $54.91 as the quantum sector gained institutional backing.
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