Rigetti Computing (RGTI) Shares Surge 5.27% on Six-Day Rally Fueled by Military Contracts, AI Orders and India Partnership

Rigetti Computing (RGTI) shares surged 5.27% on October 7, 2025, marking a six-day winning streak with a cumulative gain of 48.09%. The stock reached an intraday high of 10.72%, its highest level since October 2025, driven by a confluence of commercial, technological, and strategic developments.

The rally was fueled by a $5.8 million, three-year contract with the U.S. Air Force Research Laboratory to advance superconducting quantum networking, alongside a $5.7 million order for two Novera™ systems from a California AI/physics startup. These contracts underscore growing demand for quantum solutions in both public and private sectors. A strategic partnership with India’s Centre for Development of Advanced Computing (C-DAC) further expanded Rigetti’s international footprint, with plans to co-develop hybrid quantum systems.

Technological milestones reinforced investor optimism. Rigetti’s modular, chiplet-based architecture enabled the launch of its 36-qubit Cepheus-1-36Q system, achieving 99.5% median two-qubit gate fidelity—a critical step toward scalable quantum computing. The system’s cloud accessibility in August 2025 broadened access for researchers and enterprises, aligning with industry trends toward hybrid quantum-classical solutions.

Financial backing from Quanta Computer, including a $35 million equity investment and a $100 million joint development commitment, bolstered Rigetti’s balance sheet. A $350 million at-the-market equity offering in June 2025 left the company with $426 million in cash, supporting R&D and strategic initiatives. However, the stock’s price-to-book ratio of 24.4x and a price-to-sales ratio exceeding 1,500x highlight speculative valuations, given the firm’s $1.8 million Q2 2025 revenue and $39.7 million net loss.

Analysts remain cautiously optimistic, with a “Buy” consensus and price targets ranging from $15 to $50. Key risks include competition from tech giants, unresolved technical hurdles like error correction, and market volatility. Insider selling of 125,000 shares by directors in September 2025 raised questions about near-term confidence. While Rigetti’s roadmap positions it as a leader in superconducting quantum computing, the sector’s long-term viability and mainstream adoption timelines remain uncertain.