- Rigetti Computing Inc. (RGTI) saw its stock drop by over 1% to $12.14 despite B. Riley’s price target increase to $15 from $8.50 (a 76.5% boost), maintaining a ‘Buy’ rating.
- B. Riley’s optimism is fueled by Microsoft’s “Quantum Ready” service on Azure, predicting 2025 to be a key year for quantum computing, potentially boosting sector sentiment.
- Despite a 717% year-over-year increase, Rigetti’s stock is down 19.72% year to date, reflecting the volatile nature of investments in the high-potential but speculative quantum computing field.
Despite an optimistic outlook from B. Riley, Rigetti Computing Inc. (RGTI) experienced a decline of over one percent, trading at $12.14 in early trading on Friday. B. Riley raised their price target on Rigetti to $15 from $8.50 (a 76.5% increase), maintaining a ‘Buy’ rating, driven by the anticipation that Microsoft’s new “Quantum Ready” service on Azure’s Quantum platform could significantly boost the quantum computing sector. This development aligns with Microsoft’s (MSFT) declaration that 2025 will be pivotal for becoming “quantum-ready,” suggesting a potential surge in sector sentiment and investor interest.
B. Riley’s analysts view quantum computing as the next frontier in computational technology, following the current boom in artificial intelligence. They argue that recent advancements and industry developments could stimulate demand for Rigetti’s shares, as highlighted in their research note to investors. However, despite this positive forecast, Rigetti’s stock has been volatile, with a year-to-date decline of 19.72%, contrasting sharply with its staggering 716.67% increase over the past year. This year’s performance reflects the high-risk, high-reward nature of investing in a sector like quantum computing, where technological breakthroughs and market expectations can lead to significant price swings.
With a market cap of $2.97 billion, Rigetti Computing is at the forefront of full-stack quantum computing services, aiming to capitalize on the growing interest and investment in quantum technologies. The company’s focus on providing quantum computers over cloud platforms positions it well to benefit from any sector uplift due to increased corporate and governmental interest in quantum readiness. Nevertheless, the disconnect between the analyst’s positive outlook and the stock’s immediate reaction underscores the speculative nature of quantum computing investments, where market sentiment can be swayed by both current performance metrics and future potential. As quantum computing moves from theoretical to practical applications, Rigetti’s journey will be watched closely by investors looking for the next big technological leap.
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