Benchmark Maintains Buy Recommendation for Rigetti Computing

Benchmark maintains Rigetti Computing (RGTI) with a Buy recommendation. Analysts forecast an average one-year price target of $22.27/share, representing a 46.61% decrease from its latest closing price of $41.71/share. The projected annual revenue is 83MM, up 943.79%, and non-GAAP EPS is -$0.46. Fintel reports 547 funds or institutions reporting positions in Rigetti Computing, with an average portfolio weight of 0.22%.

Rigetti Computing (RGTI), a pioneer in the quantum computing sector, has seen its share price soar to unprecedented heights in recent months. As of September 12, 2025, Rigetti’s stock has been trading near record highs, with shares reaching around $40. This represents an astounding ~2,500% year-on-year increase from its penny-stock levels, reflecting significant investor optimism in the promise of quantum computing Rigetti Computing (RGTI) Soars on Quantum Hype: Stock Hits Highs Amid Deals & Doubts^[1].

Key Catalysts for Rigetti’s Stock Performance

Several recent developments have driven Rigetti’s stock performance. Notably, the company secured new orders totaling ~$5.7 million for its 9-qubit Novera quantum computers, which are designed for hands-on R&D . This is a significant milestone for Rigetti, as it marks the first tangible hardware sales to industry customers beyond research consortiums. Furthermore, Rigetti landed a $5.8 million contract with the U.S. Air Force Research Lab (AFRL) to develop quantum networking technology, underscoring the company’s technological credibility .

Technical Milestones and Strategic Partnerships

In 2025, Rigetti achieved several key technical milestones. The company launched the 36-qubit “Cepheus-1” processor, a modular 4-chip system with 99.5% two-qubit fidelity, doubling performance from six months prior . Additionally, Rigetti formed strategic partnerships with Quanta Computer (Taiwan) and India’s C-DAC to scale its hardware and develop hybrid quantum-classical systems, respectively .

Analyst Sentiment and Valuation

Analysts are generally bullish on Rigetti’s long-term prospects, with six out of seven analysts rating RGTI a Buy . However, their 12-month price targets (averaging ~$20–24) are roughly half the current share price . This discrepancy suggests that the stock may be overextended relative to near-term expectations. Notably, Benchmark raised its target to $50 (Buy) on October 7, while other analysts like Needham stay around $18–20 .

Financial Performance and Fundamentals

Despite the lofty valuation, Rigetti’s financials have not kept pace. Trailing 12-month revenue is under $8 million, and Q2 2025 revenue was just $1.8 million, with a net loss of $39.7 million . However, the company raised ~$385 million in Q2 through an ATM equity offering and ended the quarter with $571.6 million in cash and no debt , providing a substantial R&D war chest.

Recent Stock Performance and Volatility

Rigetti’s stock has been on a tear in late 2025, with shares skyrocketing to all-time highs. On October 6, shares topped out around $40.63, an astounding increase from under $1 one year prior. The stock jumped ~83–84% during September alone, far outpacing the flat broader market . This parabolic rise reflects intense speculative enthusiasm, with each positive headline sending the stock higher. However, the stock’s momentum is driven more by sentiment and future hopes than fundamentals, making the ride unstable .

Conclusion

Rigetti Computing has made significant strides in the quantum computing sector, with notable technical milestones and strategic partnerships driving investor optimism. However, the stock’s valuation has far outpaced its financials, and the company is trading on future potential rather than current earnings. As Rigetti continues to progress toward commercial viability, investors should closely monitor the company’s actual progress to determine if the stock’s lofty valuation is justified. The key question remains: Can Rigetti’s technological advancements and market expansion ultimately justify this lofty valuation, or is the stock leaping too far, too fast?

References

Rigetti Computing (RGTI) Soars on Quantum Hype: Stock Hits Highs Amid Deals & Doubts^[1] https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/
https://ts2.tech/en/rigetti-computing-rgti-soars-on-quantum-hype-stock-hits-highs-amid-deals-doubts/