Quantum Stocks on Fire: Rigetti's 21% Jump Caps a Month of Triple-Digit Gains

As I sit here, scrolling through the latest market updates, I can't help but be captivated by the recent surge in quantum computing stocks. One name, in particular, has been making waves: Rigetti Computing (RGTI). The company's 21% jump in late December capped off a month of triple-digit gains, leaving investors wondering what's behind this quantum leap.

Rigetti Computing, a pioneer in full-stack quantum-classical computing, has been making significant strides in the quantum computing market. The company's unique approach, which includes in-house chip making and cloud services, has given it a competitive edge. By manufacturing its own quantum processors, Rigetti can rapidly iterate and customize its chips, enabling faster innovation and adaptation to market demands. Additionally, the company's Quantum Cloud Services (QCS) platform offers hybrid quantum-classical computing, allowing for practical applications much sooner.



This strategy doesn't require waiting for perfect, error-free quantum computers, which are still years away. Instead, Rigetti focuses on near-term, real-world uses. The company's recent advancements, such as the Ankaa-2 processor, which achieved 98% median two-qubit gate fidelity, have driven investor confidence in its potential to achieve practical quantum advantage within 2-3 years.

Strategic partnerships and collaborations have also played a significant role in Rigetti's recent stock performance. In 2024, the company announced a collaboration with Riverlane to advance fault-tolerant quantum computing, demonstrating real-time, low-latency error correction on Rigetti's 84-qubit Ankaa™-2 system. This partnership, along with others, has helped Rigetti maintain a strong "Strong Buy" analyst consensus, with an average target price of $3.00, predicting a decrease of -66.42% from the current stock price of $8.94.



Rigetti's focus on hybrid quantum-classical computing enables practical applications and revenue growth. The company's business model emphasizes recurring revenue through its cloud subscription service, which offers a range of support in programming, cloud integration, and connectivity. This strategy allows Rigetti to tap into the growing demand for quantum computing services without waiting for perfect, error-free quantum computers.

As I reflect on Rigetti's recent stock performance, I can't help but wonder what the future holds for this innovative company. With its unique approach to quantum computing and a strong pipeline of technological advancements, Rigetti is well-positioned to unlock practical applications and generate revenue in the near term. As an investor, I'm keeping a close eye on Rigetti and the broader quantum computing market, eager to see what the next big breakthrough will be.