Shares of quantum computing firm Rigetti Computing (NASDAQ: RGTI) continued their dramatic ascent on Thursday, climbing nearly 9% despite broader market declines. The stock, which surged as much as 11.5% intraday, has gained approximately 205% over the past month and a staggering 6,000% over the past year.
This rally contrasts sharply with the overall market sentiment, as the S&P 500 fell 0.3% and the Nasdaq Composite edged down 0.1% on the same day.
The recent upward trajectory began earlier this week, triggered by a significant price target increase from investment firm Benchmark. The analyst raised the price target on Rigetti to $50 from $20, while maintaining a “Buy” rating. This new target suggests a potential upside of around 6% from current levels, even after the stock’s substantial recent gains.
Benchmark cited the company’s improved cash position, an expanding product portfolio, and broader support within the technology sector as key reasons for the upgrade.
The stock’s resilience and growth, particularly in an environment where U.S.-China tensions have pressured many equities, highlight investor optimism about quantum computing’s potential applications in fields like artificial intelligence and cryptography. While quantum technology is emerging as a focal point in the U.S.-China tech race, analysts caution that the current valuation carries significant risk.
Berkeley-based Rigetti, which describes itself as a “full-stack quantum computing pioneer,” sells quantum computing systems ranging from 24 to 84 qubits. The company announced earlier this month that it had secured agreements to sell two of its 9-qubit Novera systems. While the specific clients were not named, Rigetti identified them as “an Asian technology manufacturing company” and “a California-based startup specializing in applied physics and artificial intelligence.”
The $5.7 million order, though modest relative to the company’s market capitalization of over $10.9 billion, is significant. The value of this single-day booking equates to approximately 72% of Rigetti’s total revenue of $7.9 million over the past twelve months.The company expects to deliver these systems in the first half of 2026. This provides a foundation for early 2026 revenue and positions the company for potential revenue doubling or stronger growth that year.
Dr. Subodh Kulkarni, CEO of Rigetti, stated that demand for quantum computing systems is growing as the industry matures. However, financial metrics reveal a company trading at a price-to-sales multiple exceeding 1,300x, and it has yet to achieve profitability.
Analysts note that while the recent orders provide visibility for next year’s performance, investors should carefully assess the current valuation levels. The commercial viability and timeline for widespread adoption of quantum computing remain key uncertainties, urging a measured approach to investment in the sector.
