Thursday's 29% Jump Propels Rigetti's Quantum Revolution to 1,390% YTD Gains

Rigetti Computing, Inc. (NASDAQ: RGTI) shares surged by 29% on Thursday, extending its year-to-date (YTD) gains to an astonishing 1,390%. The quantum computing pioneer's stock price has been on a tear since the beginning of 2024, driven by a series of technological advancements and strategic milestones. Let's delve into the factors behind Rigetti's remarkable performance and explore the potential for continued growth in the quantum computing sector.

Rigetti's focus on superconducting qubits and multi-chip scaling technology has been a significant driver of its stock surge. The company's approach to scalability, mirroring multi-chip architectures for advanced applications with CMOS, is supported by its recently announced Alternating-Bias Assisted Annealing (ABAA) technique for precisely targeted qubit frequencies. ABAA allows Rigetti to consistently manufacture high-performance QPUs with the frequency precision necessary for high fidelities. This technology has enabled Rigetti to achieve a 99.4% median 2-qubit fidelity on its 9-qubit chips, which is a significant milestone for the company and the quantum computing industry.

Rigetti's system gate speeds consistently achieve an active duration of 60-80ns, which is four orders of magnitude faster than other modalities such as ion traps and pure atoms. This speed is an important factor in enabling hybrid computing with current CPUs/GPUs. These technological advancements, along with the company's successful launch of the 84-qubit Ankaa-3 system and its plans to introduce a new modular system architecture in 2025, have contributed to the recent surge in Rigetti's stock price.

The successful launch of the 84-qubit Ankaa-3 system and its 99.5% median two-qubit gate fidelity played a significant role in Rigetti's 29% jump. This milestone was achieved through a broad hardware redesign that enabled superior performance, including a new cryogenic hardware design, an overhaul of the qubit circuit layout, precise qubit frequency targeting with Alternating-Bias Assisted Annealing (ABAA), and flexible gate architecture with precise controls. These enhancements resulted in a significant improvement in qubit fidelity, which is crucial for the development of practical quantum computers. The market responded positively to this achievement, as it demonstrates Rigetti's leadership in the superconducting quantum computing field and its ability to deliver increasingly higher performance quantum computers.

Rigetti's full-stack development approach has also contributed to its YTD gains. The company's innovative chip design and manufacturing, improved qubit fidelity and scalability, and cloud delivery have all played a role in Rigetti's impressive performance. Rigetti has developed the industry's first multi-chip quantum processor for scalable quantum computing systems and designs and manufactures its chips in-house at Fab-1, the industry's first dedicated and integrated quantum device manufacturing facility. The company's Ankaa-3 system features a square lattice of qubits and tunable couplers, manufactured using the company's novel ABAA technique, which allows for precise qubit frequency targeting and increases in yield.

Rigetti's focus on improving qubit fidelity has resulted in enhancements across the technology stack. The company has consistently improved qubit fidelity, with the Ankaa-3 system achieving a 99.5% median two-qubit gate fidelity. Rigetti has also demonstrated tiling of 9-qubit chips without deterioration in performance, with 9-qubit chips manufactured at 99.4% 2-qubit median fidelity. The company plans to introduce a new modular system architecture in 2025, with a 36-qubit system based on four 9-qubit chips tiled together, targeting a 99.5% median 2-qubit fidelity by mid-year 2025. By the end of 2025, Rigetti expects to release a system with over 100 qubits, also with a targeted 99.5% median 2-qubit fidelity. The company is also working on developing the 336-qubit Lyra™ system thereafter.

Rigetti's cloud delivery and partnerships have also contributed to its YTD gains. The company's Quantum Cloud Services (QCS) platform allows global enterprise, government, and research clients to access its quantum computers. The Ankaa-3 system is available on Rigetti's QCS platform and will soon be available on Amazon Braket and Microsoft Azure, expanding its reach and accessibility. Rigetti's collaboration with the Superconducting Quantum Materials & Systems Center (SQMS) led by Fermilab has resulted in improved qubit coherence and optimized circuit layout.

Rigetti's impressive YTD gains and Thursday's 29% jump are a testament to the company's leadership in the quantum computing industry. As the company continues to innovate and deliver higher performance quantum computers, investors can expect Rigetti to remain a strong player in the sector. With a market cap of $14.50 billion and a P/E ratio of 429%, Rigetti's stock price may still have room to grow as the company continues to execute on its roadmap and deliver on its performance goals.