Rigetti Computing (RGTI) is a full-stack quantum computing company. They design and manufacture quantum computers along with the superconducting quantum processors powering them. Their Novera brand offers 9-qubit chips and Ankaa-2 systems, and they also provide a quantum cloud services (QCS) platform to integrate their machines into cloud computing systems. 

Working with commercial enterprises, government entities, and international corporations, they provide additional services such as algorithm development, quantum application programming, software development, and benchmarking. Founded in 2013, they have their headquarters located in Berkeley, California.

The penny stock has been a major outperformer over the last year, up 224% in the last 52 weeks and 33% on a YTD basis. However, RGTI is down more than 44% from its March highs, as investors cycled out of riskier tech stocks in April amid delayed rate cut expectations. 

RGTI Reports Q4 Earnings

The quantum computing company released its 4Q results on March 14, with revenue down year-over-year to $3.4 million, while the net loss arrived at $0.04 per share, on an adjusted basis. Both figures beat analysts' estimates, and Rigetti ended the year with cash and cash equivalents of $99.9 million

For the the full year 2023, revenue stood at $12.0 million, while the net loss narrowed to $0.57 per diluted share from the previous year’s $0.70 per share. 

Looking ahead, analysts expect Rigetti to grow revenue by 34% this fiscal year to $16.1 million, followed by 91.8% growth to $30.87 million in fiscal 2025. RGTI is currently valued at around 7 times expected 2025 sales.

Novera QPU Sale

Last month, Rigetti carried out a Novera QPU sale to Horizon Quantum Computing, Singapore. This makes it the company’s third Novera QPU sale, and its very first in Singapore. Interestingly, it will be Horizon’s first quantum computing system, with the system expected to be set up by early 2025. 

The 9-qubit QPU is Rigetti’s 4th generation Ankaa class, designed and featured with tunable couplers alongside a square lattice for denser connectivity. Rigetti’s Novera QPU manufacturing unit “Fab-1” is the industry’s very first dedicated and integrated quantum device manufacturing unit.

Is RGTI Stock a Buy?

Rigetti is set to release its 1Q results on May 9, and analysts are calling for a loss of $0.08 per share, on average - much improved from its year-ago loss. 

As pointed out in my previous article, analysts are very bullish on Rigetti stock, with a consensus “Strong Buy” rating on Wall Street.

At present, there are 3 analysts covering the stock, and 2 of them have a “Strong Buy” rating while the other one has a “Moderate Buy” rating. The mean price target is $3.17, signifying an expected upside potential of 141% from current levels.