{"id":213797,"date":"2025-10-14T22:57:18","date_gmt":"2025-10-14T22:57:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/213797\/"},"modified":"2025-10-14T22:57:18","modified_gmt":"2025-10-14T22:57:18","slug":"where-will-rigetti-computing-be-in-3-years","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/213797\/","title":{"rendered":"Where Will Rigetti Computing Be in 3 Years?"},"content":{"rendered":"

There is no set formula for making millions in the stock market. But if you want to increase your chances of multibagger<\/a> returns, bet on relatively small technology companies serving disruptive megatrends. With shares up by over 6,530% over the last 12 months alone, Rigetti Computing(NASDAQ: RGTI) is an excellent example of what is possible.<\/p>\n

That said, past returns don’t guarantee future results. And investors who missed the big rally are probably wondering if it is too late to get involved. Let’s explore the pros and cons of Rigetti Computing to get a better idea of how shares might perform over the next three years and beyond.<\/p>\n

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks \u00bb<\/a><\/p>\n

\"Nervous<\/p>\n

Image source: Getty Images.<\/p>\n

Betting on quantum computing <\/p>\n

While quantum computing<\/a> has been “just around the corner” for decades, analysts are becoming more optimistic that this time the prediction could actually be right. According to McKinsey, faster-than-expected innovation could make quantum computing a $72 billion revenue opportunity by 2035 (up from $4 billion in 2024). Much of this growth is expected to come from applications like life sciences and chemicals, where it could help companies discover new compounds.<\/p>\n

As a pure-play quantum computing company, Rigetti is positioning itself to benefit from this potential megatrend through a picks-and-shovels<\/a> approach, where it builds the superconducting quantum chips and hardware that will power the industry. It has also developed a platform called Quantum Cloud Services (QCS), designed to allow its machines to be accessed through traditional computer infrastructure via the cloud<\/a>.<\/p>\n

You can think of Rigetti as trying to become the Nvidia of quantum computing — but with a twist. While Nvidia is a fabless semiconductor company that doesn’t manufacture its own designs, Rigetti is an integrated systems company that controls its supply chain and can design and build its own chips. In 2017, the company built the world’s first dedicated quantum foundry (FAB-1) located in Fremont, California. This facility allows Rigetti to produce a high volume of quantum hardware for internal use with more predictable performance, quality, and timelines. <\/p>\n

What are the challenges?<\/p>\n

On the surface, Rigetti Computing has everything it needs to succeed. Its vertically integrated supply chain and technological edge could give it a deep economic moat<\/a> when quantum computing is ready for primetime. The problem is that we have no idea when (or even if) that will happen. While some analysts are optimistic, others strike a more cautionary tone.<\/p>\n

At Nvidia’s “Quantum Day” even in March, CEO Jensen Huang claimed that it could take as long as 20 years for useful quantum computing devices to be available — even expressing surprise that quantum computing companies are publicly traded at all. While Huang has since retracted his comments (amid a market sell-off in quantum stocks), investors should take what he said very seriously, especially when looking at the relatively weak financial reports of the industry’s early movers.<\/p>\n

Rigetti’s second-quarter sales actually declined 42% year over year to $1.8 million, highlighting the choppiness of its revenue streams. More alarmingly, operating losses grew 24% to $19.9 million because of high outflows related to research and development. The good news is that the company has $57.2 million in cash and $369 million in liquid investments, so it can probably sustain current cash burn for the next few years.<\/p>\n

What will the next three years have in store?<\/p>\n

Over the next three years, Rigetti will likely use its massive cash position to finance its quantum computing research and development. However, even in the best-case scenario, the company might be a decade away from profitability. And investors who buy now might be early to the party, especially considering how expensive shares have recently become. <\/p>\n

With a price-to-sales (P\/S) ratio<\/a> of 1,100, Rigetti’s stock trades at an immense premium to the S&P 500 average of just 3.3. The high price tag adds another layer of uncertainty to an already risky investment.<\/p>\n

Should you invest $1,000 in Rigetti Computing right now?<\/p>\n

Before you buy stock in Rigetti Computing, consider this:<\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Rigetti Computing wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you\u2019d have $657,979!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,122,746!*<\/p>\n

Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,060% \u2014 a market-crushing outperformance compared to 187% for the S&P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n

See the 10 stocks \u00bb<\/a><\/p>\n

*Stock Advisor returns as of October 13, 2025<\/p>\n

Will Ebiefung<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy<\/a>.<\/p>\n

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