Rigetti Computing Shares: Worth Investing Now?

Should Users Consider Investing in Rigetti Computing's Shares at Present?

Rigetti Computing, a leading player in the quantum computing industry, has reported a challenging Q2, with both cost of revenue and operating expenses increasing significantly. This surge in expenses has led to an operating loss of $19.9 million, marking a setback for the company.

Despite these financial challenges, Rigetti's CEO, Dr. Subodh Kulkarni, remains optimistic about the company's future. He estimates that Rigetti is four years away from achieving quantum advantage, a milestone where a quantum device can solve useful, real-world problems more effectively than classical computers.

Rigetti's revenue stream comes from organizations interested in quantum computing for research and experimentation. One such collaboration is with Montana State University. However, the competition from major players like IBM, Google, IonQ, Honeywell Quantum Solutions, and others could impact Rigetti's ability to attract customers, as evidenced by its difficulties with revenue growth.

One of Rigetti's recent achievements is the unveiling of the Cepheus-1-36Q, the largest multi-chip quantum machine in the industry. The Cepheus-1-36Q's calculation error rate is half that of its predecessor, a significant improvement.

However, Rigetti's shares have seen a dramatic increase over the past 12 months, with a rise of over 1,500%. This inflated valuation has led to a recommendation for investors to wait for the share price to drop before considering an investment. Given the high risk involved, only investors with a high risk tolerance should consider buying Rigetti shares.

Interestingly, Rigetti's P/S multiple is significantly higher than its competitors IonQ and D-Wave Quantum, indicating that its shares are expensive. This is a cause for concern, especially considering Rigetti's financial challenge, which is the combination of rising expenses and declining sales.

In Q2 2025, Rigetti generated $1.8 million in revenue, a decrease from $3.1 million in 2024. Despite this, Rigetti has accumulated $571.6 million in cash, cash equivalents, and available-for-sale investments with no debt on its balance sheet.

In the quantum computing race, Rigetti is not alone. Google, a well-heeled competitor, has developed a quantum chip capable of completing a complex computation in five minutes that would take centuries with today's fastest supercomputers. Rigetti's technology, like many others in the industry, uses superconducting qubits.

The success of Rigetti's long-term goals relies heavily on achieving quantum advantage. As the race heats up, it will be interesting to see how Rigetti navigates the challenges ahead and positions itself in the rapidly evolving quantum computing landscape.