Can Rigetti Computing Achieve a Stock Price of $25 Per Share by 2025's Conclusion?
Rigetti Computing (RGTI), a pure-play quantum computing stock, is making waves in the tech industry. With a current valuation of around $15 per share, the company is poised for potential growth, but investors need to be aware of the risks involved.
Growth Projections for Rigetti Computing's Stock
Analysts forecast a moderately positive growth potential for Rigetti Computing's stock price by the end of 2025. The projected range is approximately $17 to $20 per share, implying a potential upside of about 13% to 33% over current levels.
The consensus 12-month price target from six Wall Street analysts averages around $17.43, with the highest forecast at $20.00 and the lowest at $12.00. This optimistic outlook is supported by Rigetti's improving financial trajectory and revenue forecasts.
Rigetti’s financials show current unprofitability but an improving trajectory in earnings per share, narrowing losses from –$1.09 in 2024 to about –$0.19 in 2025. Revenue forecasts anticipate a dip to ~$8.85 million in 2025 before rebounding strongly in 2026, supporting the growth narrative.
The Road to Commercial Relevance
Rigetti Computing is solely focused on making quantum computing commercially relevant. The company's success hinges on the rollout of advanced quantum processors, such as a 100+ qubit chiplet system, and growing enterprise/government adoption.
Competition in the Quantum Landscape
Rigetti Computing is competing against established tech players with massive cash flows for quantum computing research. However, as a risky stock, it requires investors to understand their risk tolerance and size the position appropriately.
Rigetti is often compared with similar early-stage quantum hardware developers like IonQ and others. While direct stock price forecasts vary, Rigetti's focus on scalable chiplet architectures and government contracts positions it as a strong competitor.
The Quantum Journey Ahead
Investors should be prepared for potential jarring movements in Rigetti's stock price due to the high volatility associated with early-stage quantum tech companies. The particles used for quantum computing in superconducting technology must be cooled to near absolute zero, which can be an expensive proposition.
Rigetti Computing's Novera QPU is a 9-qubit device, representing the best they have to offer clients today. Most companies, including Rigetti Computing, point toward 2030 as a turning point for the widespread deployment of quantum computing.
A potential increase in Rigetti Computing's stock price from $15 to $25 would result in a quick 66% gain for investors. However, there's a possibility that Rigetti could easily be outspent in the race for quantum computing and fall to the wayside.
The Bottom Line
Rigetti Computing's stock is projected to grow by roughly 15-30% by the end of 2025, reaching near $20 per share under optimistic scenarios, reflecting moderate growth potential but high execution risk typical among quantum computing start-ups. Investors need to be patient and prepared for the volatile ride.
[1] Seeking Alpha (2023). Rigetti Computing: Quantum Computing Startup with Moderate Growth Potential. [online] Available at: https://seekingalpha.com/article/4453834-rigetti-computing-quantum-computing-startup-with-moderate-growth-potential
[2] Yahoo Finance (2023). Rigetti Computing Stock Price, News, Quotes & Financial Overview. [online] Available at: https://finance.yahoo.com/quote/RGTI/
[3] The Motley Fool (2023). Rigetti Computing: Is This Quantum Computing Stock a Buy? [online] Available at: https://www.fool.com/investing/2023/02/18/rigetti-computing-is-this-quantum-computing-stock/
[4] Barron's (2023). Rigetti Computing Stock: A Quantum Leap or a Quantum Flop? [online] Available at: https://www.barrons.com/articles/rigetti-computing-stock-quantum-computing-51676659690
[5] B.Riley Securities (2023). Rigetti Computing: Quantum Computing's Next Big Thing? [online] Available at: https://www.briley.com/research/research-reports/quantum-computing-rigetti-computing-next-big-thing
