Rigetti Computing (NASDAQ: RGTI) recently experienced an impressive surge, with its stock price jumping by over 15%. This significant gain immediately captured Wall Street’s attention, coming on the heels of positive coverage from leading analysts. With growing interest in quantum technologies, investors are now asking a crucial question: Is this the beginning of a long-term trend, or merely a short-lived rally that will soon fade? A deep dive into the stock’s performance, analysts’ forecasts, and the company’s financial challenges reveals a complex yet largely encouraging picture.

Positive Analyst Coverage Raises Expectations

The latest leap in Rigetti Computing’s stock price didn’t happen in a vacuum. It was primarily fueled by new coverage from Troy Jensen, a prominent analyst at the leading investment firm Cantor Fitzgerald. Jensen assigned Rigetti a “Buy” rating with a price target of $15, suggesting an upside potential of more than 14% from its current trading price. This represents a substantial vote of confidence from a well-respected industry analyst, drawing significant attention from a wide range of investors.

However, Jensen isn’t the only one seeing potential in Rigetti. Other analysts, such as Richard Shannon from Craig-Hallum, also hold positive ratings. Shannon and his colleagues identify Rigetti’s unique advantages in quantum scaling – the ability to increase the number of qubits in quantum computers, a critical factor for their computational power. These capabilities could position Rigetti favorably against larger, more established players in the field.

Analysts frequently point out that while quantum computing is still in its nascent stages, requiring immense investments in research and development, its trajectory could parallel that of Artificial Intelligence (AI). As we’ve witnessed in recent years, AI has transformed from a futuristic concept into a core driver for economies and leading companies worldwide. If quantum computing follows a similar path, RGTI is strategically positioned as a potentially significant competitor in the future technology market, with the prospect of exponential long-term growth.

Financial Fundamentals Are Challenging – Yet Improving

Despite the hype and analytical optimism, it’s crucial to acknowledge that Rigetti Computing’s financial situation is not yet entirely stable, a common characteristic of pioneering companies in cutting-edge industries. For the first quarter of 2025, the company reported modest revenues of just $1.5 million, alongside a substantial operating loss of $21.6 million. These figures underscore that Rigetti, like many companies in breakthrough technology sectors, is still in the phase of heavy investment in research, development, and commercialization, and has not yet achieved profitability.

Nevertheless, it’s important to also consider the signs of improvement. The company has demonstrated notable progress in controlling expenses, indicating responsible financial management and a commitment to efficiency. Furthermore, Rigetti has successfully established strategic collaborations with key players in both the industry and the public sector. Partnerships with entities like NASA, leading quantum algorithm startup Phasecraft, and the international bank Standard Chartered, suggest the early stages of commercial penetration and a recognition of Rigetti’s technological capabilities by influential entities.

Another significant turning point was the $350 million capital raise completed in June 2025. This funding dramatically strengthened the company’s balance sheet, leaving it with a healthy cash balance of $575 million and no debt. This move provides Rigetti with substantial financial resilience, enabling it to expand its research and development (R&D) and commercialization efforts without fear of a credit crunch or the immediate need for frequent additional capital raises. This is an excellent position for a company in its early growth stages.

Upside Potential Despite High Volatility

While the recent stock price surge was impressive, and the stock has already climbed over 1,200% in the past year, it’s important to remember that RGTI is still significantly below its historical peak of $20 per share. Moreover, as of mid-2025, the stock has experienced a decline of approximately 14% year-to-date, indicating high volatility. This volatility is a common characteristic of stocks in innovative, high-risk technology sectors, and it can work both ways.

On one hand, volatility points to high sensitivity to news, expectations, and shifts in market sentiment. On the other hand, it also reveals additional significant upside potential, especially if the company’s financial performance continues to improve consistently, and the pace of quantum technology maturity accelerates. For long-term investors, temporary dips could present attractive entry opportunities.

Who’s Behind the Quantum Computing Realm?

Rigetti is not the sole player in the quantum computing arena, and competition in the field is undeniably intensifying. Global tech giants like Google and IBM are investing immense resources in the race to achieve “quantum supremacy” – the ability to perform computations impossible for classical computers. These corporations bring vast research, engineering, and financial capabilities to the table.

Concurrently, governments worldwide – particularly the United States and China – are allocating massive budgets to develop the infrastructure, algorithms, and applications related to quantum computing, recognizing its paramount strategic importance.

However, despite this fierce competition, Rigetti possesses a distinct advantage: a focused and agile approach. Unlike tech behemoths with diverse objectives and investments across numerous projects, Rigetti is exclusively and entirely dedicated to quantum computing. This singular focus allows it to channel all its resources – both human and financial – into fostering innovation within its core domain, making it more nimble and flexible in adapting to technological changes and market demands.

Strategic Investments Moving Forward

Rigetti has ambitious plans to expand its technological stack. The company intends to continue leveraging its capabilities to develop quantum systems that compete at the highest levels of performance. This includes ongoing investment in improving quantum hardware (the quantum computers themselves), the software required to operate them, and the development of innovative quantum algorithms.

Beyond pure technological advancement, the company aims to broaden the practical applications of its technology. It identifies immense potential in key areas such as optimization (solving complex problems with unprecedented efficiency), scientific simulations (for example, predicting the behavior of molecules and materials), and the development of advanced materials with extraordinary properties. These applications have the potential to revolutionize entire industries, from pharmaceuticals to finance.

Conclusion: High Risk – But Also Exceptional Potential

Rigetti Computing serves as a classic example of a revolutionary technology company at the forefront of an innovative field. It possesses immense potential to disrupt existing paradigms, yet it also carries an inherent high level of risk. Investing in this stock is a “calculated gamble” on the future of quantum computing in general, and on Rigetti’s ability to capture a significant market share within this domain in particular.

If the field matures as anticipated, and the company continues its trajectory of improving technological and financial performance, it could indeed become one of the global leaders in the quantum market. However, if technological challenges persist, or competition intensifies unexpectedly, the stock’s high volatility could deter even the most daring investor.

For now, the message from analysts is optimistic: ratings are positive, growth forecasts are encouraging, and the company’s financial foundation has significantly strengthened following the latest capital raise. For investors seeking exposure to an innovative sector with a long-term horizon, and who are willing to assume a relatively higher risk in exchange for exceptional potential returns, Rigetti Computing is definitely a name worth watching closely and considering as part of a diversified investment portfolio.

Do you see Rigetti leading the quantum computing revolution, or do the risks outweigh the potential?