Core Insights - Rigetti Computing (RGTI) has delayed the general availability of its 108-qubit Cepheus-1-108Q system to the end of Q1 2026 due to the need for additional testing and performance optimization, impacting market sentiment [1][3] - The Cepheus-1-108Q system is the highest-qubit and largest modular quantum computing system available, built from 12 9-qubit chiplets using Rigetti's proprietary architecture [2] - RGTI's stock experienced a modest decline following the announcement, highlighting the importance of timelines in the quantum technology sector [3] Company Overview - Rigetti Computing, founded in 2013 and based in Berkeley, California, specializes in full-stack quantum computing solutions, including superconducting quantum processors and software platforms [3] - The company has a market capitalization of $8.4 billion, indicating growing investor interest despite challenges in technology scaling and profitability [4] Stock Performance - RGTI stock has shown significant volatility and speculative enthusiasm, with a notable growth phase in 2024, driven by increased investor appetite for quantum technology [5] - The stock reached a high of $58.15 on October 14, 2025, with a 128% gain over the past 52 weeks and an impressive two-year return of 2,436% [6]

Core Insights - Quantum computing stocks currently lack staying power due to the technology's expected impact not materializing until around 2030, similar to biotech stocks in clinical trials [1] - If a quantum computing stock is perceived as undervalued, it may be due to negative market sentiment, company struggles, or excessive sell-offs by investors [2] Company Overview - Rigetti Computing, a prominent player in quantum computing, has a market cap of $8 billion but is down over 50% from its all-time high, raising questions about potential buying opportunities [3] - Rigetti employs superconducting technology, which, while not the most accurate, offers superior processing speeds compared to alternatives like trapped ion technology [4][5] Financial Performance - In Q3, Rigetti reported revenue of $1.9 million and an operating loss of $21 million, with approximately $600 million in cash reserves, indicating short-term survival capability [6][7]

Core Insights - Quantum computing stocks have significantly outperformed the market in 2025, with IonQ and Rigetti Computing being notable leaders in the industry [1] - IonQ has seen an 83% increase in stock value, while Rigetti has experienced a remarkable 325% growth over the past year [1] Company Approaches - IonQ and Rigetti employ different technologies for quantum computing; Rigetti uses superconducting techniques, while IonQ utilizes trapped-ion technology [2] - Rigetti's systems achieve gate speeds that are 10,000 times faster than IonQ's trapped-ion systems, but IonQ has superior accuracy with a fidelity of 99.99% compared to Rigetti's 99.5% [3] Industry Viability - In quantum computing, achieving near 100% fidelity is crucial for commercial viability, as even a 0.49% difference can lead to incorrect calculations [4] Financial Performance - IonQ has reported $80 million in revenue over the trailing 12 months, reflecting a 493% growth over the last three years, while Rigetti's revenue has declined by 43%, totaling $7 million [5] - IonQ's higher fidelity contributes to its significantly better earnings compared to Rigetti [5] Investment Outlook - For investors optimistic about quantum computing, acquiring shares in both companies is suggested, but IonQ is favored due to its greater accuracy and revenue growth [6]

Core Viewpoint - Rigetti Computing is a controversial quantum computing stock that has experienced significant historical gains but is currently facing challenges such as declining revenue and dilution risk [1] Group 1: Company Performance - Rigetti Computing has delivered massive gains historically, indicating strong market interest and potential in the quantum computing sector [1] - The company is currently experiencing shrinking revenue, which raises concerns about its financial health and sustainability [1] Group 2: Investment Risks - There is a notable dilution risk associated with Rigetti Computing, which could impact shareholder value and long-term investment returns [1] - The video discusses the potential upside for long-term investors, highlighting what needs to go right for the company to succeed [1]

Industry Overview - Quantum computing is still in the experimental phase, with significant challenges such as error-proneness and stability of qubits needing to be addressed [2][3] - Companies are making progress, with Nvidia's CEO indicating that quantum computing is nearing an inflection point for solving practical problems [4] D-Wave Quantum - D-Wave is recognized as a leader in quantum annealing, focusing on finding optimal solutions for specific problems rather than solving complex mathematical problems [6] - The company has a market cap of $10 billion, with a current price of $28.83 and a gross margin of 82.82% [8] - D-Wave has over 100 paying customers and is experiencing growth in revenue and bookings, while also moving into gate-based quantum computing [8][9] - The acquisition of Quantum Circuits aims to develop an error-correcting, gate-based system [9] Rigetti Computing - Rigetti is pursuing a universal gate-based quantum system, which is expected to solve more complex computational problems [10] - The company has a market cap of $8.5 billion, with a current price of $25.62, but has a significantly negative gross margin of -6849.48% [11][12] - Rigetti's systems are reported to be over 1,000 times faster than competitors, but it lags in accuracy, achieving only 99.5% 2-gate fidelity compared to IonQ's 99.99% [12] - The company has minimal revenue and faced setbacks, including not advancing in the DARPA Quantum Benchmarking Initiative and delaying the availability of its new 108-qubit machine due to fidelity issues [13][15] Comparative Analysis - D-Wave is preferred for its established niche in quantum annealing and its strategic move towards gate-based systems, which could leverage its existing business [14] - Rigetti's challenges with accuracy and setbacks in key programs highlight its competitive disadvantages [15]

Core Insights - The upcoming fourth-quarter 2025 earnings season is critical for three quantum computing companies: D-Wave Quantum, Rigetti, and IonQ, as it will reveal their ability to convert quantum technology into revenue [1][11] Group 1: Company Performance - IonQ's third-quarter revenues increased by 222% year over year, with expectations for fourth-quarter revenues to surpass the third quarter [2][18] - D-Wave reported nearly doubled revenues of $3.7 million in the third quarter, with record bookings of $2.4 million and a strong pipeline, including a €10 million contract [8][11] - Rigetti's third-quarter revenues were $1.9 million, down year over year, but recent orders and contracts are expected to improve fourth-quarter revenues [14][15] Group 2: Market Sentiment and Stock Performance - During the fourth quarter of 2025, D-Wave's stock gained 2%, while Rigetti and IonQ saw declines of 25.8% and 28.9%, respectively, due to investor skepticism about high valuations and broader tech sentiment [4][5] - The overall market sentiment weakened in late 2025, leading to significant stock corrections for these companies [5] Group 3: Financial Outlook - D-Wave's fourth-quarter revenue growth is expected to be gradual due to deferred revenue recognition from multi-year contracts, despite strong bookings exceeding $12 million [9][12] - Rigetti is projected to report fourth-quarter earnings growth of 37.5% on revenue growth of 17.7%, with no formal guidance for 2025 [16][17] - IonQ is expected to report fourth-quarter earnings growth of 48.4% on revenue growth of 244.2%, supported by strong commercial interest and a robust cash position of about $3.5 billion [20][19] Group 4: Investor Strategy - Investors are advised to adopt a long-term allocation strategy in this emerging sector, given the volatility and valuation sensitivity of these quantum computing stocks [21]

Core Viewpoint - Rosenblatt Securities initiated coverage of Rigetti Computing (RGTI) with a "Buy" rating and a price target of $40, indicating a potential upside of approximately 60% as interest in quantum computing grows [1] Company Overview - Rigetti Computing employs a modular approach to scaling quantum processors and possesses internal fabrication capabilities, which are seen as competitive advantages in the quantum computing sector [1] - The company operates its own quantum processing unit fabrication facility and has an installed base of 18 machines, with 6 deployed at customer sites and 12 accessible via cloud platforms [3] Technical Challenges - Rigetti announced delays in its 108-qubit Cepheus system due to two-qubit gate error rates of 99.0%, which are below the target of 99.5% [2] - Despite these challenges, management is confident in resolving the issues by the end of the first quarter [3] Competitive Landscape - Competitors such as IBM and IQM have achieved better error rates of 99.92% and 99.85%, respectively, but Rigetti's fundamentals remain strong [3] - Rigetti's ability to network multiple quantum processors through tunable couplers is viewed as a key technological differentiator [4] Market Sentiment - Mizuho Securities also issued a "Buy" rating, reflecting increasing investor interest in quantum computing stocks [5] - Rigetti has reported promising results on smaller systems, achieving 99.7% fidelity on its 9-qubit system and 99.6% on its 36-qubit configuration, indicating that scaling challenges are primarily in larger architectures [7]

Core Insights - Quantum computing stocks have seen significant price increases, with some rising by up to 5,400% in 2024, attracting investor interest despite skepticism from industry insiders [2][3][10] - The global addressable market for quantum computing is projected to reach $1 trillion by 2035, indicating substantial long-term growth potential [3] - High-profile partnerships with major companies like Amazon and Microsoft are enhancing the visibility and credibility of quantum computing firms [5][6] Company Performance - Quantum computing companies such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. are expected to experience triple-digit annual sales growth, with Rigetti's revenue projected to increase from less than $8 million in 2025 to $152 million by 2029 [9] - D-Wave Quantum's revenue is anticipated to rise from less than $26 million in 2025 to $219 million by 2029, showcasing the growth trajectory of these firms [9] Insider Activity - Over the past three years, insiders of quantum computing companies have sold approximately $840 million more in stock than they have purchased, raising concerns about the companies' future prospects [12][13] - Notably, there has been minimal insider buying activity, with Quantum Computing Inc. and Rigetti Computing showing no insider purchases during this period, which may signal a lack of confidence in the stock's future performance [16][17] Market Dynamics - The surge in quantum computing stocks in 2025 was partly fueled by a report from JPMorgan Chase outlining a $1.5 trillion initiative that includes quantum computing as a critical area for investment [7][8] - Despite the excitement surrounding quantum computing, the high price-to-sales ratios of these stocks suggest they may be overvalued, indicating potential market corrections in the future [17][18]

Rigetti Computing FY Conference Summary Company Overview - **Company**: Rigetti Computing (NasdaqCM:RGTI) - **Founded**: 2013 - **Headquarters**: Berkeley, California - **Industry**: Quantum Computing - **Technology**: Focus on superconducting qubits, which are considered the leading modality in quantum computing due to scalability and speed [1][4] Key Points and Arguments Quantum Computing Technology - Rigetti's quantum computers utilize superconducting qubits, achieving gate speeds of 50-70 nanoseconds, significantly faster than other modalities like ion traps [1][5] - The company has developed the first multi-chip quantum processor for scalable systems, manufacturing QPUs in-house at Fab 1, the first dedicated quantum device manufacturing facility [1][4] - Over 90% of current investments in quantum computing are in superconducting gate technology, with major players including IBM, Google, and the Chinese government [5] Scalability and Speed - Scalability and gate speed are critical advantages of superconducting technology, with Rigetti's systems operating at speeds comparable to CPUs and GPUs [5][6] - Historical challenges in fidelity for superconducting qubits have improved, with recent advancements showing fidelity rates of 99.5%-99.7% [8] Go-to-Market Strategy - Rigetti has chosen a hybrid approach, selling both physical quantum computers and offering quantum computing as a service [10] - The company tailors its offerings based on customer needs, providing either complete systems or just QPUs depending on existing infrastructure [13][14] Quantum Advantage - Rigetti is conservative in its estimates, projecting that quantum advantage could be achieved in about three years, requiring at least 1,000 qubits, 99.9% fidelity, and 50 nanosecond gate speeds [18][19] - The company emphasizes the importance of demonstrating clear superiority over classical computing in practical applications [19][21] Roadmap and Future Goals - Immediate goal is to deploy a 108-qubit system with 99.5% fidelity and 60-nanosecond gate speed by the end of Q1 2026 [33] - Plans to exceed 150 qubits at 99.7% fidelity within the year, with a long-term goal of reaching 1,000 qubits at 99.8% fidelity by 2027 [35] Partnerships and Collaborations - Rigetti has partnered with various companies for different aspects of its technology stack, including Riverlane for error correction and NVIDIA for distribution layer software [40][41] - The company believes in an open and modular architecture, allowing for integration of innovative solutions from other firms [39] Government Funding and Market Outlook - The U.S. government is expected to increase funding for quantum computing significantly, with recent initiatives indicating a commitment to maintaining leadership in the field [69][70] - Rigetti anticipates that the market for quantum computing will grow to approximately $3 billion by 2030 and $15-$20 billion by 2035 [17] Customer Base and Applications - Current customers include Fermilab, Air Force Research Laboratory, and Montana State University, primarily using systems for research applications [60] - The company does not foresee practical workloads being handled by quantum computers until quantum advantage is achieved [60] Additional Important Insights - Rigetti's balance sheet is strong, with $600 million in cash and no debt, allowing for a focus on organic growth and technology milestones [70] - The company stresses the need for patience in the quantum computing sector, indicating that significant advancements will take time [72]

Core Insights - Rigetti Computing's update on its 108-qubit Cepheus-1-108Q system indicates a focus on performance discipline, delaying general availability to late Q1 2026 for further testing and optimization to achieve 99.5% median two-qubit gate fidelity [1][9] Company Updates - Rigetti has demonstrated 99% median two-qubit fidelity on the 108-qubit system and higher fidelities on its 9-qubit and 36-qubit platforms, indicating that the technical foundation is solid despite the delay [2][9] - The complexity of scaling modular quantum systems is highlighted, with the Cepheus-1-108Q system comprising 12 9-qubit chiplets connected via tunable couplers, leading to new engineering challenges [3] - Rigetti's decision to refine chiplet couplers suggests a commitment to launching a system that meets performance benchmarks rather than rushing to market [3][4] Market Position - The timeline adjustment may enhance Rigetti's credibility with partners and customers who value reliable quantum performance, positioning the update as a strategic recalibration for long-term value creation [4] - Rigetti's shares have increased by 99.9% over the last six months, contrasting with a 7.6% decline in the industry [8] Valuation and Earnings Estimates - Rigetti trades at a price-to-book ratio of 22.66, which is above the industry average, and carries a Value Score of F [11] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates an 88.9% decline from the previous year [12]