Rigetti Computing (RGTI) Surges 15.28% on Air Force Contract, 76.16% 7-Day Rally Hits 52-Week High

Rigetti Computing (RGTI) surged 15.28% on September 19, marking a 76.16% rally over seven days. The stock hit its highest level since September 2025, with an intraday gain of 17.58%, driven by renewed investor optimism in its quantum computing ambitions.

A key catalyst was a $5.8 million, three-year contract with the U.S. Air Force Research Laboratory to develop quantum networking technology. The project, a collaboration with Dutch startup QphoX, aims to connect quantum systems via photonic integration, aligning with national security priorities. While CEO Subodh Kulkarni emphasized the experimental nature of the work, the contract underscored Rigetti’s strategic positioning in federally funded quantum innovation.

Recent technical milestones further bolstered sentiment. The company announced the general availability of its 36-qubit multi-chip quantum computer and a 50% reduction in two-qubit gate error rates, achieving 99.5% median fidelity. Partnerships with India’s Centre for Development of Advanced Computing and Montana State University expanded its academic and governmental reach, reinforcing its role in advancing hybrid quantum systems.

Analyst support remained robust, with six “Buy” ratings and a consensus price target of $17.43—below the current $20.97 level. Upgrades from B. Riley and Cantor Fitzgerald highlighted Rigetti’s leadership in superconducting processors and R&D pipeline. However, critics noted the stock’s high valuation (price-to-sales ratio of 779) and Q2 2025 net loss of $0.05 per share, signaling reliance on long-term government contracts rather than near-term revenue.

Institutional confidence persisted despite insider sales by directors, including Thomas Iannotti and Helene Sandford, who offloaded significant stakes near 52-week highs. Nuveen Asset Management and Amalgamated Bank increased holdings, reflecting belief in Rigetti’s long-term potential. The quantum sector’s broader momentum, fueled by federal investment and sector-specific optimism, further supported the stock’s outperformance against broader indices.

While the rally reflects validation of Rigetti’s technical capabilities and strategic alliances, risks remain tied to its unprofitable model and speculative valuation. The CEO’s caution about the Air Force project’s long-term timeline underscores that gains are tied to future milestones, not immediate commercialization. For now, the stock balances high hopes for quantum computing’s future with the realities of a nascent industry.