Rigetti Computing (RGTI) has been making waves in the quantum computing industry, capturing the attention of investors and tech enthusiasts alike. Despite the cautionary statements from industry leaders like Nvidia’s Jensen Huang and Meta’s Mark Zuckerberg about the distant practical applications of quantum computing, Rigetti has managed to maintain a vibrant presence in the market. Their recent activities, particularly the anticipation around Nvidia’s ‘Quantum Day’, where industry leaders will discuss where quantum computing is headed, illustrate a sector that’s both volatile and promising.
Investor James Foord has pegged Rigetti as the quantum stock with the highest return potential, TipRanks reported on Friday. Foord highlights Rigetti’s upcoming projects, such as the development of a 100-qubit computer by year’s end, as significant catalysts that could propel the stock’s value. Additionally, Rigetti’s CEO, Subodh Kulkarni, shared insights on the YF podcast “Opening Bid,” outlining the company’s roadmap. Kulkarni emphasized plans to not only increase the qubit count but also improve qubit fidelity by the end of 2025. A key part of this strategy is the development of quantum chiplets to efficiently scale up the technology. This optimism comes even as the stock experiences significant fluctuations, reflecting the inherent risks of investing in a field where technology is still in its nascent stages. Foord’s advice, however, comes with a warning: the quantum computing market is not for the faint-hearted, suggesting that only those with a high tolerance for risk should consider direct investments in companies like Rigetti, while others might look towards more stable investments like ETFs or established tech giants with quantum initiatives, such as Alphabet (GOOGL, GOOG) or IBM (IBM).
The narrative around Rigetti took a twist with Nvidia’s upcoming ‘Quantum Day’ on March 25th. This event, led by Jensen Huang, aims to delve into the potential applications of quantum computing, suggesting that despite the long road ahead, there’s a palpable interest and commitment from major players in tech to keep pushing the boundaries. This could serve as a short-term catalyst for Rigetti, as the spotlight on quantum computing might reignite investor interest.
Wall Street’s view on Rigetti remains bullish, with a ‘Buy’ consensus based on five ‘Buy’ ratings. However, the current stock price significantly overshoots the analysts’ 12-month average target of $5.70, hinting at a possible correction or an upcoming revision of these targets. This discrepancy between current valuation and analyst expectations underscores the speculative nature of quantum stock investments but also highlights potential for further growth if or when technological breakthroughs or broader market adoption occur.
In terms of performance, Rigetti’s stock has shown dramatic swings. With a 52-week range from $0.66 to $21.42, and a current 5.16% pre-market dip to $10.65, the stock’s journey reflects both the enthusiasm and the uncertainty surrounding quantum computing. Despite a year-to-date drop of nearly 27%, the stock has seen a remarkable increase of over 1,060% year over year, showcasing the potential for high returns amidst high volatility.
For investors, Rigetti Computing represents a gamble on the future of computing technology. The company’s focus on developing practical quantum computing solutions, combined with strategic partnerships and upcoming technological milestones, positions it as a potential leader in the field. However, the path is fraught with challenges, including the pace of technological advancement, market acceptance, and the sheer complexity of scaling quantum systems. As such, while Rigetti offers tantalizing prospects for those looking to make quick gains, it also serves as a reminder of the speculative nature of investing in frontier tech sectors.
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