Rigetti Computing, Inc.

(NASDAQ Capital Market)
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Bullish +55

Why Quantum Stocks D-Wave and Rigetti Are Falling Today β€” and What Wall Street Expects Next

Company update Government funding New contract AI-generated analysis

πŸ“‰ Rigetti Computing shares fell 3% today as investors reacted to sector-wide weakness driven by D-Wave's disappointing margin contraction.

πŸ’° Wall Street expects Rigetti to report Q3 revenue of $3.3 million, representing a 69% year-over-year increase.

πŸ“‰ Analysts anticipate an operating loss of $0.06 per share for the quarter due to continued heavy spending on technology development.

πŸ’΅ The company has secured up to $100 million in CHIPS Act funding from the U.S. Department of Commerce to support superconducting quantum computing.

🀝 Rigetti signed an $8.4 million order with India's Centre for Development of Advanced Computing for a 108-qubit quantum computer.

πŸš€ The company is pursuing larger processors using its proprietary chiplet architecture to enable more capable quantum systems.

πŸ“ˆ Rigetti holds a Strong Buy consensus rating based on three buy recommendations assigned over the past three months.

🎯 The average 12-month analyst price target stands at $23.33, suggesting approximately 84% upside from current levels.

Bullish Signals
  • Rigetti has secured a significant $100 million funding agreement with the U.S. Department of Commerce under the CHIPS Act to support its superconducting quantum computing development.
  • The company received an $8.4 million order from India's Centre for Development of Advanced Computing for a 108-qubit quantum computer scheduled for delivery in the second half of 2026.
  • Rigetti is advancing its technology roadmap with a proprietary chiplet architecture that allows multiple smaller chips to operate together, offering a potential path toward more capable quantum systems.
  • Analysts maintain a Strong Buy consensus rating on the stock based on three buy recommendations assigned during the past three months.
Risk Factors
  • Rigetti is expected to report an operating loss of $0.06 per share for the third quarter, reflecting considerable spending required to develop and commercialize its technology.
  • The company faces near-term financial headwinds as investors remain cautious about converting technological milestones into sustainable revenue growth ahead of earnings.
Full Analysis
Quantum computing stocks D-Wave and Rigetti are experiencing a sell-off, with Rigetti Computing (NASDAQ:RGTI) falling 3% as investors weigh upcoming earnings. While D-Wave reported third-quarter revenue growth of 21% to $4.5 million, concerns over widening operating losses and deteriorating gross margins have dampened sentiment, causing the broader sector to decline. Rigetti faces similar financial headwinds with an expected Q3 loss of $0.06 per share against anticipated revenue of $3.3 million. Despite these near-term challenges, the company has secured significant government support through a $100 million CHIPS Act funding agreement and signed an $8.4 million contract with India's Centre for Development of Advanced Computing for a 108-qubit system. Analysts maintain a Strong Buy consensus on Rigetti with an average price target of $23.33, implying approximately 84% upside from current levels. The company's investment case relies heavily on its proprietary chiplet architecture and the successful commercialization of its technology roadmap to convert technological milestones into sustainable financial growth.