BlackRock (BLK), the globe’s largest asset manager with $11.5 trillion in assets under management and a portfolio spanning across various sectors, has once again demonstrated its market foresight by significantly increasing its stake in Rigetti Computing Inc. (RGTI), a leader in quantum computing. This strategic move, detailed in a 13F SEC filing, saw BlackRock acquiring an additional 538,966 shares, or 6.05% from the previous quarter’s holding of 8,908,634 shares of RGTI in the third quarter of 2024, elevating its total holding to 9,447,600 shares. As of September 30, 2024, this investment was valued at $7.39 million, positioning BlackRock as the second-largest shareholder in the company known for its advancements in quantum computing technology.
Since this investment, Rigetti’s stock has experienced a meteoric rise, soaring by 2,648%. This surge has positioned the stock as a standout performer, hitting a 52-week high of $21.42 on January 6, 2025. If BlackRock has maintained its position without divesting, its investment in RGTI would now be worth more than $116 million, showcasing a phenomenal return on investment in a short span.
The quantum computing sector, including Rigetti, benefited from a significant catalyst when Google (GOOG) announced its next-generation Willow chip which has demonstrated amazing capabilities, solving in five minutes a problem that would take one of the world’s fastest supercomputers an astonishing septillion years. This announcement not only sparked renewed interest in quantum computing but also propelled stocks related to this technology upward. The Defiance Quantum ETF (QTUM), which provides exposure to major players in quantum computing, has itself risen by 43% since September 6, 2024, reflecting the sector’s growing allure among investors.
Despite recent fluctuations following Nvidia CEO Jensen Huang’s January remarks that practical quantum computing could be 15 to 30 years away, Rigetti’s stock trajectory reflects strong confidence in the industry’s long-term potential. BlackRock’s significant stake in Rigetti not only reflects confidence in the company’s technology but also in the broader potential of quantum computing to revolutionize computing as we know it.
This investment narrative by BlackRock in Rigetti Computing exemplifies how the firm leverages its vast resources to not just follow but also shape market trends. By investing heavily in sectors poised for growth, like quantum computing and cryptocurrencies, BlackRock continues to diversify its portfolio while potentially reaping substantial rewards from these forward-thinking bets.
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