Righetti Computing Today
As of 11:39 AM Eastern
- 52-week range
- $0.66
▼
$21.42
- Price target
- $4.80
Righetti Computing NASDAQ: RGTI is making great strides with its quantum computing technology, offering investors a high-reward opportunity. Quantum computing is the next level, potentially providing exponentially more computing power than today’s most advanced conventional computers. However, this stock also carries high risks, including concerns about capitalization, weakness, and whether it can even cross the bottom line.
The most likely scenario for this stock in 2025 is volatility, with the possibility of retesting long-term lows and touching new highs.
What does Rigetti Computing do?
Righetti Computing is a leading manufacturer of quantum computers and the processors that run them. Revenue is primarily driven by its cloud-based quantum-computing-as-a-service business. Its claims to fame are its commercially available 9-qubit processor and its industry-leading multi-chip processor, which is expected to have a full commercial release by mid-year.
The Number-3 is a scalable device that provides 82 qubits of processing power and is available on Righetti’s Quantum Cloud Services platform. It is scheduled to be released on Amazon’s Bracket and Microsoft Azure Quantum before mid-year. Other catalysts in 2025 include the possible introduction of a new architecture, including a 32-qubit system combining four chips.
The Righetti Computing revenue growth outlook is strong, and growth is expected to reach high-double to low-triple-digits by the end of the decade. However, forecasts can be aggressive due to slowness and Low performance in 2024
The company is on track to generate about $12 million in revenue in 2024 results, insufficient to turn a profit given the intensive capital requirements of R&D and manufacturing. With respect to profitability, the company is not expected to reach profitability until sometime in 2030 and may not achieve its target. Operating expenses were $18.4 million or roughly 8X revenue in Q3 2024 and are unlikely to decline significantly over time.
The company is Capitalized enough to 2025, but that comes at a price, and there are risks. The company reduced its stock by 30% in the first nine months of F2024 and compounded this with an additional sale in Q4. Executives believe the business is sufficiently capitalized and will not need to raise additional capital, but this is doubtful.
With quarterly losses running in the $15 to $20 million range and no significant progress, the company will likely run out of cash years before reaching profitability, before the end of the decade.
Mixed sell-side support points for volatility
Righetti Computing Stock Forecast Today
$4.80
-27.93% declinebuy
Based on 5 analyst ratings
| High forecast | $12.00 |
|---|---|
| Average forecast | $4.80 |
| Less predictable | $2.00 |
Analysts and institutions are bullish on the stock, rating it as a buy in the first case and a buy on balance for four consecutive quarters in the second. However, there are offsetting factors driving volatility.
They have a consensus price target, which is 30% below the mid-January price action, internally selling in the rally, and a. High-low interest. Short interest and short-covering are central to the stock’s explosive rally in late 2024 but are unlikely to leave the market.
The more likely scenario is that short interest, ramping to more than 20% in Q4 2024, remains elevated due to repositioning, a sentiment echoed in the charts.
RGTI shares surged more than 1000% in Q4 2024 on news, including Google’s progress with the Willow chip and systems. However, the increase was Limited by comments from NVIDIA NASDAQ: NVDA CEO Jensen Huang, who doubted the timing of practical quantum computers operating at scale. In his view, Applied quantum computing would not be viable for at least ten years, killing the outlook for revenue growth and profitability by nearly a decade.
NVIDIA collaborates on quantum computing, partnering with Righetti to develop practical hybrid workflows, so Mr. Huang is in a position to know.
The impact on the RGTI stock price is a 70% retracement from the highs, which creates significant overhand for this market. Righetti’s share price may bounce back, but is unlikely to set new highs, and how deep the market goes before rebounding remains to be seen. The best target for support is near the cluster of moving averages at $3.65. 
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