{"id":2074,"date":"2025-07-18T03:25:13","date_gmt":"2025-07-18T03:25:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/2074\/"},"modified":"2025-07-18T03:25:13","modified_gmt":"2025-07-18T03:25:13","slug":"can-rigetti-computing-stock-see-another-tenfold-increase","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/2074\/","title":{"rendered":"Can Rigetti Computing Stock See Another Tenfold Increase?"},"content":{"rendered":"

Rigetti Computing\u2019s stock<\/a> surged 30% on July 16 after achieving 99.5% gate fidelity on its 36-qubit modular system\u2014cutting error rates in half versus its previous 84-qubit chip. This breakthrough validates their chiplet-based architecture as a scalable solution for practical quantum computing. Despite Rigetti\u2019s stock already experiencing a remarkable 1,300% surge in the past twelve months, the question remains: what factors could drive the stock to another tenfold increase?<\/p>\n

That said, if you are looking for an upside with a smoother ride than an individual stock, consider the High Quality portfolio<\/a>, which has outperformed the S&P, and clocked >91% returns since inception. Separately, see \u2013 Buy CSX Stock At $35 Amid Acquisition Speculation?<\/a><\/p>\n

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Image by Markus Winkler from Pixabay<\/p>\n

10x Growth Drivers<\/p>\n

Modular Architecture Advantage: Unlike competitors using monolithic processors, Rigetti\u2019s chiplet approach solves quantum computing\u2019s primary scaling challenge. The ability to maintain 99.5% fidelity, while scaling through connected modules, positions them as the leader in practical, large-scale quantum systems.
\nStrategic Manufacturing Partnership: The $100M commitment from Rigetti and Quanta over 5 years, plus Quanta\u2019s additional $35M investment, provides manufacturing expertise and capital for commercialization at scale.
\nGovernment Validation: DARPA\u2019s QBI program selection and consortium leadership demonstrate credibility and provide stable revenue streams for utility-scale quantum development by 2033.
\nCommercial Market Timing: As quantum computing transitions from research to commercial applications, Rigetti\u2019s superior architecture and cloud-based services position them to capture disproportionate market share.<\/p>\n

Risk Factors<\/p>\n

Financial Reality: The company faces significant financial challenges, with $10.8M revenue<\/a> in 2024 against $68.5M operational expenses<\/a>. Q1 2025 revenue dropped 52% year-over-year to $1.47M, highlighting heavy reliance on volatile government contracts.
\nValuation Risk: The company\u2019s lofty valuations may offer little protection against downturns. Changes in market sentiment could readily spark substantial volatility. While investors value quantum stocks based on potential future growth, RGTI, for example, currently trades at around 400 times its trailing revenues<\/a>, indicating a possibly inflated valuation.
\nCash Burn: Unsustainable spending rate requires rapid revenue growth.
\nExecution Risk: Must deliver on scaling roadmap and demonstrate quantum advantage
\nCompetition: Well-funded tech giants and alternative quantum approaches, all actively pursuing market share in the quantum computing domain.<\/p>\n

Historical Examples of 10x Growth
\nNVIDIA\u2019s AI Revolution (2016-2024)<\/p>\n

NVIDIA<\/a> serves as the most pertinent comparison for QBTS\u2019s potential growth trajectory. Between 2016 and 2024, NVIDIA stock surged from around $8 to more than $130 (adjusted for splits), marking a 16x increase. This expansion occurred as NVIDIA evolved from a gaming graphics firm to a core component of AI infrastructure. Similarly, D-Wave may capitalize on the burgeoning quantum computing infrastructure market. Additionally, see \u2013 NVDA Stock To $200?<\/a><\/p>\n

Biotech Breakthroughs<\/p>\n

Moderna\u2019s development of a COVID-19 vaccine propelled its stock from $20 to over $400 in 2020-2021, illustrating how groundbreaking applications can lead to explosive growth. D-Wave\u2019s quantum optimization solutions could similarly disrupt industries once they gain commercial traction.<\/p>\n

The Verdict<\/p>\n

Rigetti represents a high-risk, high-reward opportunity at quantum computing\u2019s commercial inflection point. Their modular architecture breakthrough, combined with manufacturing partnerships and government validation, creates multiple pathways for 10x growth.<\/p>\n

Success depends on executing the scaling roadmap, demonstrating commercial quantum advantage, and achieving revenue growth to justify massive current valuation. For risk-tolerant investors, Rigetti offers exposure to potentially transformative technology with clear competitive advantages at a critical market transition point.<\/p>\n

Although significant risks remain, the chance for revolutionary impact across various industries warrants a premium valuation for investors with the suitable risk appetite and long-term investment perspectives. We underscore the considerable risk tied to this investment; therefore, investors should thoughtfully evaluate these risks or consider professionally managed alternatives, such as the Trefis High Quality (HQ) Portfolio<\/a> with a selection of 30 stocks that has a history of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a collective, HQ Portfolio stocks have yielded greater returns with lower risk compared to the benchmark index; experiencing less volatility, as seen in HQ Portfolio performance metrics<\/a>.<\/p>\n

Invest with\u00a0Trefis\u00a0Market-Beating Portfolios<\/a><\/p>\n

See all\u00a0Trefis\u00a0Price Estimates<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Rigetti Computing\u2019s stock surged 30% on July 16 after achieving 99.5% gate fidelity on its 36-qubit modular system\u2014cutting…\n","protected":false},"author":2,"featured_media":2075,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[64,63,257,3119,3116,3118,3115,3117,105],"class_list":{"0":"post-2074","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-au","9":"tag-australia","10":"tag-computing","11":"tag-ionq","12":"tag-ionq-stock","13":"tag-rgti","14":"tag-rgti-stock","15":"tag-rgti-valuation","16":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/2074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=2074"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/2074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/2075"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=2074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=2074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=2074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}