Investors are paying venture-style multiples for technology that still lacks commercial traction. Yet, the massive opportunity inherent in quantum computing<\/a> could make this tech stock a steal — even at these elevated levels. Let’s dig deeper to find out whether this premium-laden growth stock<\/a> is worth the price of admission.<\/p>\n Image source: Getty Images.<\/p>\n Technical breakthroughs mask commercial struggles<\/p>\n In August 2025, Rigetti’s modular 36-qubit system — four 9-qubit chiplets linked together — achieved 99.5% median two-qubit gate fidelity, halving errors from its Ankaa-3 machine. A 100-plus qubit chiplet system is targeted by year-end. Think of it like building a supercomputer from many processors instead of one impossible monolith.<\/p>\n Rigetti’s superconducting qubits operate at fractions of a degree above absolute zero. The company’s two-qubit gates run in tens of nanoseconds, versus tens of microseconds for trapped-ion or neutral-atom systems — roughly 100 to 1,000 times faster. Faster gates allow more operations within limited coherence times, though rival platforms often deliver higher fidelities and longer lifetimes.<\/p>\n On the financial front, second-quarter 2025 revenue fell to $1.8 million from $3.1 million a year ago, reflecting contract timing. Income comes from cloud access<\/a>, custom algorithm work, and government research and development (R&D). Operating losses of $19.9 million in the most recent quarter underscore the capital-intensive nature of this nascent field.<\/p>\n In short, technical progress is ramping while revenues remain minimal.<\/p>\n Government validation provides crucial backing<\/p>\n DARPA tapped Rigetti as a performer in its Quantum Benchmarking Initiative — a program seeking “utility-scale” quantum computers by 2033 — alongside IBM and IonQ. The Defense Advanced Research Projects Agency’s (DARPA) track record includes the internet, GPS, and stealth aircraft, making its backing a meaningful vote of confidence.<\/p>\n Meanwhile, Washington is advancing the National Quantum Initiative (NQI) Reauthorization Act (approximately $2.7 billion) and the Department of Energy Quantum Leadership Act (approximately $2.5 billion). Europe has pledged about 2 billion euros at the European Union (E.U.) level and another 9 billion euros from member states.<\/p>\n China’s widely cited $10 billion for quantum computing projects represents a one-time Hefei National Lab project, not recurring spend. The bottom line is that global governments are racing to fund credible players in this emerging space.<\/p>\n How does Rigetti fit into this government-backed innovation bonanza? Rigetti manufactures at its Fab-1 facility using semiconductor-style<\/a> modular methods. By wiring smaller chips into larger systems, it sidesteps yield issues that plagued single-chip designs. IBM’s 1,121-qubit Condor processor (2023) underscored the limits of monolithic scaling and pushed IBM itself toward modular architectures.<\/p>\n Put simply, Rigetti was ahead of the curve in employing modular designs — a critical decision that could translate into a key competitive advantage.<\/p>\n Extreme valuation demands caution<\/p>\n Rigetti raised $350 million in Q2 via an at-the-market program<\/a>, ending the quarter with $571.6 million in cash and no debt. That buys time through 2026, but the opportunistic raise at lofty prices signals management’s awareness that current valuations may not last.<\/p>\n At a $5.3 billion market cap on approximately $11 million-ish in trailing revenue, Rigetti stock trades at around 495 times sales. By comparison, traditional semiconductor giant Nvidia trades at approximately 40 times forward earnings — with profits, proven demand, and a rock-solid moat. While rich, Nvidia’s premium pales in comparison to those of Rigetti and other pure-play quantum stocks, all of which are cash-flow negative at the moment.<\/p>\n A speculative bet on computing’s future<\/p>\n Quantum computing could be the next revolution — or an expensive science experiment. Rigetti’s 36-qubit milestone and DARPA backing validate its chiplet strategy, and $571.6 million in cash provides breathing room.<\/p>\n Still, at 495 times trailing sales, the stock’s valuation prices in perfection. Thus, risk-tolerant investors might cap exposure at no more than 2% of a well-diversified portfolio. For most, though, it makes sense to wait for proof of real commercial traction before betting on Rigetti as a breakthrough play in quantum’s uncertain future.<\/p>\n George Budwell<\/a> has positions in D-Wave Quantum, IonQ, Nvidia, and Rigetti Computing. The Motley Fool has positions in and recommends International Business Machines and Nvidia. The Motley Fool has a disclosure policy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"This quantum computing pioneer trades at 670 times trailing sales while generating $1.8 million in quarterly revenue and…\n","protected":false},"author":2,"featured_media":123774,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[191,74],"class_list":{"0":"post-123773","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-computing","9":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/123773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=123773"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/123773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/123774"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=123773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=123773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=123773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n