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Why Rigetti Computing Stock Keeps Going Up Finviz Com

Bonisiwe Shabane
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why rigetti computing stock keeps going up finviz com

Rigetti Computing stock has been rising for three straight days. Earlier this week, the company announced a $5.7 million sale for two of its quantum computers. Over the last 12 months, Rigetti's sales totaled only $7.9 million. Shares of quantum computing company Rigetti Computing (NASDAQ: RGTI) soared 11.5% through 10:15 a.m. ET on Thursday -- all on no obvious news today. Rigetti did have some news earlier in the week, however.

It may be one reason why Rigetti stock has been growing in strength for three days straight, despite investor uncertainty about the U.S. government shutdown this week. Rigetti Computing, Inc. (RGTI Quick QuoteRGTI - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this company have returned +0.7%, compared to the Zacks S&P 500 composite's +3% change.

During this period, the Zacks Internet - Software industry, which Rigetti Computing falls in, has gained 7.9%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually... Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.

And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Quantum computing firm Rigetti Computing (NASDAQ:RGTI) has been one of the best-performing stocks of the past year. On a 12-month basis, RGTI shares are up 930%, including a jump of over 40% in the last 30 days alone. Today, let’s take a look at why Rigetti stock is going up and whether this incredible momentum has staying power.

Much of RGTI’s run over the last year can be accounted for by a more general bullish trend among quantum computing stocks. With AI heating up the tech sector, more risk-tolerant investors are already on the hunt for the next area of technological breakthrough. To many, the answer is quantum computing and its ability to perform at speeds up to 100 million times faster than even the best classical computers. Rigetti Computing, Inc.’s RGTI shares have gained more than 2,800% in the past year as investors showed excitement over its quantum breakthroughs. However, Rigetti’s weak fundamentals and lofty valuation raised doubts about its future growth trajectory and how investors should position themselves toward the stock. Let’s see in detail –

Rigetti's shares have soared over the past year as the company secured major contracts and made significant progress in advanced quantum computing technology. Rigetti's 36-qubit quantum system achieved 99.5% accuracy in key operations, marking a breakthrough toward developing a 100+ qubit chiplet-based system by the year's end. Rigetti signed a $5.8 million deal with the U.S. Air Force Research Laboratory to further develop quantum networking technology. It also received orders for two 9-qubit Novera quantum computing systems worth nearly $5.7 million, scheduled for delivery next year. Additionally, capital is pouring into the quantum computing sector, benefiting dedicated companies like Rigetti.

JPMorgan Chase & Co. JPM announced plans to invest about $10 billion in various innovative fields, including quantum computing. This has driven the stocks of quantum computing companies, including Rigetti, higher. Ongoing contracts and continuous breakthroughs in quantum computing may give Rigetti's stock the momentum needed to keep climbing. However, quantum computing remains in its early stages, and companies in this field require substantial funding for research and development. Rigetti recently completed a $350 million equity offering, providing the company with enough cash to continue operations and easing concerns about funding stability.

Written by Jon Quast for The Motley Fool-> Shares of quantum computing company Rigetti Computing (NASDAQ: RGTI) were up a mind-blowing 400.3% during December, according to data provided by S&P Global Market Intelligence. The company updated its roadmap in November, which seems to have served as an early catalyst. Then on Dec. 9, Alphabet's Google announced a quantum breakthrough that exhilarated the investing community about the potential of quantum computing generally. Therefore, there truly have been developments in the world of quantum computers, but this hasn't necessarily trickled down to something material for Rigetti Computing's financials yet.

In fact, its revenue through the first three quarters of 2024 is down compared to 2023. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » This situation is consequently fragile -- Rigetti stock is flying high but its fundamentals have yet to improve. And on Jan.

7, investors were shown just how delicate this can be. Nvidia CEO Jensen Huang said at the CES trade show that it will likely be somewhere around 20 years before there are "very useful quantum computers." Rigetti Computing Inc (NASDAQ:RGTI) is trading lower Friday afternoon, marking a reversal after a surge earlier in the week driven by retail momentum and sector-wide optimism. The recent volatility comes amid a classic Santa Rally, where retail investors earlier this week rotated into high-beta quantum stocks while institutional trading desks thin out for the holidays. What To Know: Earlier gains this week were fueled by a wave of social media sentiment focused on Rigetti’s 2026 roadmap, which promises higher-qubit systems and significantly lower error rates. This retail interest was compounded by a halo effect from peers like IonQ and D-Wave, which also saw spikes following strategic milestones and bullish analyst coverage.

Notably, Wedbush recently initiated coverage on Rigetti with an Outperform rating and a $35 price target, citing the company’s advanced chiplets and vertically integrated production capabilities as key differentiators. Market observers note that this week’s price action fits the pattern of a “Holiday Gap,” where lower trading volumes between Dec. 20 and New Year’s allow retail sentiment to move small-cap stocks more aggressively. While retail investors likely drove the stock higher earlier in the week on the belief that the “quantum age” could arrive by 2026, Friday’s downturn suggests a pause in the momentum as the holiday... Quantum computing exploded onto the investment scene in late 2024, igniting a frenzy that propelled pure-play stocks to astronomical heights. Rigetti Computing (RGTI) emerged as one of the biggest beneficiaries, with shares rocketing over 800% in a single month amid breakthrough announcements and surging optimism.

Over the past three years, RGTI has delivered staggering gains of more than 3,200%, and at its peak, the stock was up over 8,200% from historic lows. Early investors have undeniably struck a rich motherlode, turning modest bets into life-changing wealth. Yet for those new to the quantum sector, the ride has been brutal. On Friday, RGTI tumbled almost 9% to close 61% below its October high of $58, erasing much of the year's explosive gains. This pullback mirrors broader pain across quantum stocks like IonQ (IONQ) and D-Wave (QBTS), which have also plunged sharply after similar booms and busts. With the entire sector reeling, investors need to ask: Is the hype surrounding quantum computing finally over – and is RGTI still a buy?

Quantum computing harnesses principles of quantum mechanics, using qubits that can exist in multiple states simultaneously (superposition) and become entangled. Unlike classical bits limited to 0 or 1, this enables quantum systems to explore vast solutions exponentially faster for certain problems. The potential is transformative: faster drug discovery by simulating molecules, optimized financial models, unbreakable encryption breakthroughs, and efficient logistics routing. Quantum could reshape industries from pharmaceuticals to materials science, unlocking solutions classical computers can't touch in reasonable time.

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