Rigetti Computing's Quantum Breakthrough and Microsoft Backing Spark 173rd-Ranked $770M Volume Surge

Rigetti Computing (RGTI) surged 2.33% on July 31, 2025, with a trading volume of $0.77 billion, a 115.47% increase from the prior day, ranking it 173rd in market activity. The stock’s rally was driven by advancements in quantum computing, including a 99.5% two-qubit gate fidelity milestone, reducing error rates by half compared to prior systems. The company plans to launch a 36-qubit system on August 15 and aims to introduce a 100+ qubit system by year-end, signaling progress in scalable quantum hardware.

Microsoft’s CEO Satya Nadella highlighted quantum computing as “the next big accelerator” in cloud technology during an earnings call, indirectly boosting investor sentiment for quantum-focused firms like Rigetti. Analysts at B. Riley upgraded RGTI’s price target to $19 from $15, maintaining a Buy rating. Despite a negative EBITDA margin of -1395.2% and a high price-to-sales ratio of 397.75, Rigetti’s robust balance sheet—$269 million in assets and a 18.8 current ratio—supports its long-term growth narrative.

The company’s Q2 revenue rose to $10.79 million, with a 50.4% gross margin, though significant R&D and administrative expenses pressured profitability. Investors remain cautiously optimistic, balancing near-term financial challenges with the potential for quantum computing to revolutionize industries such as cryptography and complex simulations. The surge in volume and price reflects heightened speculation on the technology’s commercial viability, even as experts caution that widespread adoption may remain years away.

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