Rigetti Computing's Shares: Should You Invest Now?
In a significant development for the quantum computing industry, DARPA (Defense Advanced Research Projects Agency) has selected Rigetti as a performer in its Quantum Benchmarking Initiative. This selection is a meaningful vote of confidence, given DARPA's past achievements like the internet, GPS, and stealth aircraft.
Rigetti, a quantum computing company, has been making waves in the industry. In Q2, the company raised $350 million via an at-the-market program, ending the quarter with $571.6 million in cash and no debt. This substantial financial backing allows Rigetti to continue its operations with breathing room.
The head of Rigetti Computing GmbH, Subodh Kulkarni, is a renowned figure in the field, known for his achievements and government support. Under his leadership, Rigetti has made significant strides. The company's modular 36-qubit system achieved a 99.5% median two-qubit gate fidelity in August 2025, a milestone that validates its chiplet strategy.
Rigetti's two-qubit gates run in tens of nanoseconds, which is 100 to 1,000 times faster than trapped-ion or neutral-atom systems. This speed advantage could potentially give Rigetti a competitive edge in the rapidly evolving quantum computing market.
However, it's important to note that the quantum computing industry is still in its nascent stages. Operating losses of $19.9 million in the most recent quarter underscore the capital-intensive nature of this field. At a $5.3 billion market cap, Rigetti stock trades at around 495 times its trailing revenue, a valuation that some might find high given the industry's uncertainties.
For most investors, it makes sense to wait for proof of real commercial traction before considering Rigetti as a breakthrough play in quantum's uncertain future. Traditional semiconductor giant Nvidia, for instance, trades at approximately 40 times forward earnings, with profits, proven demand, and a rock-solid moat.
On a global scale, governments are pouring money into quantum computing research. In the United States, the National Quantum Initiative (NQI) Reauthorization Act (approximately $2.7 billion) and the Department of Energy Quantum Leadership Act (approximately $2.5 billion) are being advanced by Washington. Europe has pledged about 2 billion euros at the European Union (E.U.) level and another 9 billion euros from member states for quantum computing initiatives. China, too, has invested $10 billion for quantum computing projects, although this is a one-time investment for the Hefei National Lab project, not recurring spend.
As Rigetti targets a 100-plus qubit chiplet system by year-end, the company continues to push the boundaries of quantum computing. With its unique approach, strong financial backing, and strategic partnerships, Rigetti is well-positioned to play a significant role in the future of this exciting and rapidly evolving field. However, as with any investment, it's crucial for risk-tolerant investors to cap their exposure to Rigetti at no more than 2% of a well-diversified portfolio.
