Rigetti Computing (RGTI) Stock Forecast & Price Target

Rigetti Computing Inc has significantly strengthened its balance sheet, ending the year with approximately $217 million in cash, bolstered by a projected $35 million equity investment from Quanta, providing substantial financial runway for future growth. The company's commitment to advancing its quantum technologies is evident through its notable progress in qubit fidelity, which has improved to 99.5% from the mid-90s in just two years, positioning it favorably in the competitive landscape of quantum computing. Additionally, as Rigetti continues to refine its modular architecture and tiling approach, it is expected to meet increasing hardware demand, which could yield considerable upside beyond current sales forecasts.

Rigetti Computing faces a negative outlook primarily due to projected increasing losses driven by rising research and development expenses coupled with lower-than-expected sales growth. The company reported revenues that fell slightly short of expectations in 4Q24 and highlights the risks associated with delayed quantum adoption, which could hinder scaling and drive lower sales. Additionally, significant uncertainties in revenue forecasting, potential customer losses, and ongoing supply chain issues further exacerbate skepticism among investors.