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Rigetti Computing Inc Faces Pivotal Moment After Jefferies Coverage

Bonisiwe Shabane
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rigetti computing inc faces pivotal moment after jefferies coverage

Rigetti Computing Inc. is back in the spotlight after Jefferies initiated coverage with a Hold rating and a $30 price target, reigniting debate over how the market should value early-stage quantum computing companies. The initiation comes at a critical point for Rigetti, whose shares have cooled from their recent highs but remain well above earlier 2025 levels. Rather than triggering a sharp sell-off, the Jefferies call has sharpened investor focus on timelines, execution risk, and whether quantum enthusiasm has moved ahead of commercial reality. 🚨Jefferies initiated coverage of Rigetti $RGTI Computing with a Hold rating and $30 price target. The company will benefit from early-cycle quantum tailwinds, but the stock is balanced by execution and revenue mix risks, the analyst tells investors in a research note.

The firm… Rigetti has seen a wide range of analyst actions over the past two months, underscoring the valuation uncertainty surrounding quantum computing stocks. In December, Mizuho initiated coverage with an Outperform rating and a $50 target, highlighting optimism around long-term quantum adoption. Earlier in November, Benchmark reaffirmed a Buy rating but cut its target from $50 to $40, reflecting more conservative expectations. Rigetti Computing is getting mixed signals from Wall Street as analysts try to figure out if the quantum computing company’s sky-high valuation makes any sense. Jefferies recently slapped a Hold rating on the stock, telling investors this is a “wait-and-watch” situation.

The investment bank’s message was pretty clear: the risks are bigger than the opportunities right now. The numbers tell a rough story. Rigetti’s revenue dropped 37% over the last twelve months, according to InvestingPro data. That’s not just a bad quarter – that’s a serious decline. Analysts aren’t expecting things to get better anytime soon. Forecasts predict another 30% revenue drop this year.

For a company trying to prove itself in the quantum computing space, those numbers raise eyebrows. Here’s where things get really interesting. Rigetti has a market capitalization of $7.77 billion. The company’s trailing twelve-month revenue? Just $7.49 million. Written by Keith Noonan for The Motley Fool->

Rigetti Computing stock saw fell in the first half of 2025 after surging 1,449% last year. Comments from Nvidia CEO Jensen Huang played a significant role in shaping Rigetti's stock moves across the first half of the year. Rigetti's share price has been skyrocketing in July. Rigetti Computing (NASDAQ: RGTI) stock got hit with substantial sell-offs in the first half of this year. The company's share price fell 22.3% across the stretch, according to data from S&P Global Market Intelligence. The stock lost ground even as the S&P 500 (SNPINDEX: ^GSPC) saw a 5.5% increase.

Rigetti Computing, Inc. (NASDAQ: RGTI) is back in its natural habitat on Tuesday, December 23, 2025: dramatic price action. After a sharp rally to start the holiday week, RGTI stock pulled back mid-session, underscoring just how sentiment-driven the “pure-play” quantum trade can be when liquidity thins and headlines multiply. As of 1:58 p.m. ET (18:58 UTC), Rigetti shares traded at $25.25, down $1.63 (-6.06%) on the day, after opening at $25.83 and trading between $25.10 and $26.82. That drop follows Monday’s surge—an about-face that’s quickly become a motif for quantum computing stocks in 2025.

Monday’s move in quantum names was widely described as a broad “risk-on” burst: several publicly traded quantum firms posted double-digit gains, and Rigetti was among the standouts. A market recap published today characterized Rigetti’s Monday session as a 13.13% gain to $26.88. Insider Monkey By Tuesday morning, the tone flipped toward profit-taking, with at least one outlet describing a “soar-then-fall” pattern across D-Wave, Rigetti, and IonQ during the holiday week. Fast Company Shares of Rigetti Computing Inc.(RGTI) declined over 7% on Friday after the company initiated an at-the-market (ATM) equity offering program that could generate up to $350 million in proceeds.

Under the arrangement, Jefferies LLC will act as the sales agent, facilitating stock sales directly on the open market on Rigetti’s behalf. The quantum and timing of these share issuances will depend entirely on the company's discretion. The offering enables Rigetti to issue shares incrementally, as needed. Rigetti has been offering cloud-based quantum services since 2017 and on-premises systems since 2021. The company designs and manufactures its chips at Fab-1, a dedicated quantum device production facility. At the end of April, Rigetti closed an investment deal with Quanta Computer Inc., with the latter acquiring roughly $35 million worth of Rigetti common stock at a price of approximately $11.59 per share.

Rigetti Computing Inc. faces significant market impact from reports highlighting potential operational challenges and the liquidation of a major investor’s stake, contributing to a cautious outlook. On Thursday, Rigetti Computing Inc.’s stocks have been trading down by -8.63 percent. Live Update At 14:05:43 EST: On Thursday, March 20, 2025 Rigetti Computing Inc. stock [NASDAQ: RGTI] is trending down by -8.63%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

The company’s Chief Technology Officer, David Rivas, sold shares worth around $2.73M. Following this large transaction, Rivas still controls more than 1 million shares, creating a stir amongst investors. Rigetti’s Q4 earnings reflected a loss, worsened by significant revenue drops. In light of these financial setbacks, the company’s stock price has reacted accordingly. As Tim Bohen, lead trainer with StocksToTrade says, “I focus on momentum that’s visible right now. Speculation on future moves is outside my playbook.” In the fast-paced world of trading, relying on visible momentum is crucial.

Many traders get caught up in predictions and speculations, but staying grounded in the present data helps in making informed and timely decisions. The market is unpredictable, and having a strategy that centers on current momentum can significantly enhance a trader’s effectiveness.

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