Righetti Computers Today
Discards calculations
As of 12:52 pm ET
- 52 week range
- US$0.66
▼
US$21.42
- Target price
- US$4.80
Discards calculations NASDAQ: RGTI has made great strides in its quantum computing technology, offering investors high-return opportunities. Quantum computing is the next level, potentially providing exponentially more computing power than the latest traditional computers. However, these stocks also carry high risks, including concerns about capitalization, dilution and whether they can even cross the finish line.
The most likely scenario for this stock in 2025 is volatility with the possibility of retesting long-term lows and making new highs.
What do Rigetti computers do?
Rigetti Computing is a leading manufacturer of quantum computers and the processors that run them. Revenue is primarily driven by its cloud-based quantum computing-as-a-service business. Its fame stems from its commercially available 9-qubit processor and industry-leading multi-chip processor, which is expected to be fully commercialized by mid-year.
Ankaa-3 is a scalable device that provides 82 qubits of computing power and is available on the Rigetti quantum cloud services platform. It is scheduled to be released on Amazon Braket and Microsoft Azure Quantum by mid-year. Other catalysts in 2025 include the expected launch of a new architecture, including a 32-qubit system connecting four chips.
Rigetti Computing’s earnings growth outlook is robust, with growth expected to reach double to triple digits by the end of the decade. However, forecasts could be aggressive due to sluggishness and poor performance in 2024.
The company could generate about $12 million in revenue by 2024, which is not enough to generate profit given the intensive capital requirements for research, development and production. On the earnings side, the company is not expected to reach profitability until the 2030s and may miss its target. Operating expenses in the third quarter of 2024 were $18.4 million, nearly 8 times revenue, and are unlikely to decline significantly over time.
The company is sufficiently capitalized by 2025, but there are costs and risks. The company diluted its shares by 30% in the first nine months of 2024 and made matters worse with an additional sale in the fourth quarter. Managers believe that the business is sufficiently capitalized and will not require raising additional capital, but this is doubtful.
With quarterly losses in the $15 million to $20 million range and no significant growth, the company will likely run out of money before the end of the decade, several years before it reaches profitability.
Mixed volatility support points from sellers
Rigetti Computing stock forecast for today
US$4.80
-27.93% DisadvantageBuy
Based on ratings of 5 analysts
| High forecast | US$12.00 |
|---|---|
| Average forecast | US$4.80 |
| Low forecast | $2.00 |
Rigetti Computing stock forecast details
Analysts and financial institutions are bullish on the stock, rating it Buy in the former and Buy for four consecutive quarters in the latter. However, there are offsetting factors contributing to volatility.
These include a consensus price target that is 30% below mid-January price action, insider selling on the rally, and a high percentage of short positions. Short interest and short covering are central to the stock’s explosive rally at the end of 2024, but are unlikely to exit the market.
The more likely scenario is that short interest, which rises to over 20% in the fourth quarter of 2024, will remain high due to repositioning, a view reflected in the charts.
RGTI shares rose more than 1,000% in the fourth quarter of 2024 on news including Google’s advances in Willow chips and systems. However, the growth was limited by comments from NVIDIA. NASDAQ: NVDA CEO Jenson Huang, who questioned the timing of practical quantum computers operating at scale. In his opinion, useful quantum computing will not be viable for at least a decade, pushing back the prospects for revenue growth and profitability by almost a decade.
NVIDIA is collaborating on quantum computing, collaborating with Righetti to develop a practical hybrid workflow, so Mr. Huang has the ability to know.
The impact on the RGTI share price is a 70% retracement from the highs, creating a significant overweight for this market. Rigetti’s share price may recover, but setting new highs is unlikely and how deep the market will go before recovering remains to be seen. The best target for support is the moving average cluster at $3.65. 
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