Rigetti Computing (RGTI) Stock Forecast & Price Target

Rigetti Computing Inc has demonstrated a 67% increase in trading volume over the past month compared to the previous 30-day average, indicating heightened investor interest and confidence. The company's stock has risen 136%, surpassing gains seen by its competitors, which reflects strong market performance and momentum in the quantum computing sector. As demand for quantum technology, particularly from the public sector, continues to grow, coupled with a robust increase in assets under management in quantum-focused ETFs, Rigetti is well-positioned for substantial revenue growth in the coming years.

Rigetti Computing Inc has experienced a substantial decline in gross margins, with figures dropping from 31.4% in the second quarter to 20.7% in the most recent quarter, indicative of challenges in volume and revenue mix. The company reported third-quarter revenues of $1.9 million, which fell approximately $0.3 million short of expectations, primarily due to delays in government funding and the expiration of the National Quantum Initiative Act, further emphasizing the unpredictability of sales. Additionally, as quantum computing technology is still in its nascent stage, the potential for large-scale systems to meet market demands remains uncertain, raising concerns about Rigetti's long-term valuation and prospects.