Rigetti Computing: A Quantum Leap in Three Years?

As we stand on the precipice of a new era in computing, one dominated by quantum machines, it's natural to wonder where Rigetti Computing, a trailblazer in the field, will be in three years. With a current stock price of $13.17 and analyst price targets ranging from $2.00 to $12.00, the future of Rigetti seems uncertain. But let's delve into the company's technological advancements, financial performance, and strategic partnerships to paint a clearer picture of its potential trajectory.



Technological Advancements

Rigetti Computing has an ambitious roadmap for the next three years, focusing on scaling its quantum systems for greater computational power and reliability. By 2025, the company plans to launch a 36-qubit system composed of four interconnected 9-qubit chips, targeting a high 99.5% median two-qubit fidelity. This multi-chip design aims to mirror advanced multi-core architectures used in classical computing, increasing processing power without sacrificing fidelity (Source: Rigetti Roadmap).

Moreover, Rigetti's 2025 roadmap includes a 36-qubit system built with interconnected 9-qubit chips, targeting a high 99.5% two-qubit fidelity, alongside plans for a future 336-qubit Lyra™ system. The company's Alternating-Bias Assisted Annealing (ABAA) technique, introduced in August, fine-tunes qubit frequencies, reducing defects and supporting precise, high-fidelity quantum gate operations (Source: Rigetti Roadmap).

These advancements are expected to significantly impact Rigetti's market position and stock price by increasing computational power and reliability, enhancing technological leadership, and potentially driving stock price appreciation.



Financial Performance

Rigetti's financial performance has been volatile, with a decrease of -6.36% in revenue in 2024 and a projected increase of 47.00% in 2025. To justify its current valuation and analyst price targets, Rigetti needs to consistently achieve high revenue growth rates and improve its profitability. Analysts predict an average revenue growth of 130.5% between 2026 and 2029, and an improvement in EPS from -$0.38 in 2024 to -$0.25 in 2029 (Source: Financial Forecast).

To achieve these targets, Rigetti must focus on reducing operating expenses, increasing revenue, and improving its overall financial performance. By doing so, the company can validate its valuation and potentially drive stock price appreciation.

Strategic Partnerships

To expand its market reach and enhance its competitive position, Rigetti could pursue strategic partnerships or acquisitions in the next three years. These could include collaborations with leading technology companies like IBM, Google, or Microsoft, acquisitions of complementary quantum technology startups, or partnerships with government research institutions. By pursuing these opportunities, Rigetti can expand its product offerings, strengthen its competitive position, and accelerate its growth in the quantum computing industry.

In conclusion, Rigetti Computing's future depends on its ability to deliver on its technological roadmap, improve its financial performance, and forge strategic partnerships. If the company can achieve these goals, it has the potential to become a leader in the quantum computing industry and drive significant stock price appreciation. However, the road ahead is filled with challenges, and investors should closely monitor Rigetti's progress to make informed decisions about its stock.