Investors keeping an eye on cutting-edge technology have likely noticed the growing attention around RGTI stock. Rigetti Computing (NASDAQ: RGTI), a leader in quantum computing, has generated anticipation ahead of its latest earnings report. In this article, we review RGTI stock’s recent performance, key earnings drivers, and what investors need to consider for the future.
RGTI stock has been notably volatile in 2024. According to TradingView, shares have declined by 32.5% year-to-date—worse than sector averages. This underperformance is partly due to broader technology sector challenges and heightened market uncertainty. In addition, trade tensions and tariffs have contributed to a cautious investor atmosphere.
Rigetti Computing's focus on advancing quantum processor technology continues to distinguish the company. Analysts expect first-quarter 2025 revenues near $2.46 million, marking a year-over-year decline of about 19%. The forecast for earnings is a loss of 5 cents per share, unchanged from recent estimates. The company's quarterly performance has been mixed, with some earnings beats, but an overall negative surprise rate. For an in-depth look at these projections, see the full TradingView report here.
Several recent advances may drive long-term growth for Rigetti. The launch of the 84-qubit Ankaa-3 quantum computer and expanded availability on major cloud platforms—including Amazon Braket and Azure—are promising. Moreover, the integration of AI-driven calibration tools, as well as partnerships with top industry names like NVIDIA and Quantum Machines, could strengthen RGTI’s position. Despite these positives, some leading tech CEOs have questioned quantum computing’s short-term commercial viability, affecting overall sentiment and valuation.
Despite falling share prices, RGTI stock is still considered expensive relative to many peers. TradingView notes the company's forward 12-month price-to-sales ratio sits at a lofty 129.25X—much higher than sector averages. This elevated valuation may limit short-term upside, especially during periods of economic uncertainty. Rigetti’s expanding client roster, including Amazon, Microsoft, Riverlane, NVIDIA, and Quantum Machines, highlights the growing influence of quantum computing. However, macroeconomic headwinds and stiff competition from established tech giants present real challenges. For additional perspectives on Rigetti’s financials and valuation, you can check industry coverage at Barron's.
Most analysts advise caution with RGTI stock right now. While the company’s advanced technology and strategic partnerships position it well in the quantum race, its valuation and market risks cannot be ignored. TradingView currently rates RGTI as a "Hold," urging potential investors to watch for more favorable entry points and monitor sector trends closely. For more details, see this analysis.
Rigetti Computing remains a standout in the emerging quantum technology landscape. The near-term outlook for RGTI stock is mixed, with great potential balanced by valuation risks and market uncertainty. Investors interested in high-growth technology stories should do thorough research and consider consulting with a financial advisor before making investment decisions.