Benchmark raises Rigetti Computing stock price target to $20 on chiplet progress

Published 13/08/2025, 15:52
Benchmark raises Rigetti Computing stock price target to $20 on chiplet progress

Investing.com - Benchmark raised its price target on Rigetti Computing Inc. (NASDAQ:RGTI) to $20.00 from $14.00 on Wednesday, while maintaining a Buy rating on the quantum computing company’s stock. The company’s shares have shown remarkable momentum, delivering a 1,706% return over the past year and a 32% gain in the last six months, according to InvestingPro data.

The price target increase follows Rigetti’s strong second-quarter results and continued progress on its chiplet-based scaling strategy. The company remains on schedule to deliver a 100-qubit multi-chiplet QPU with 99.5% two-qubit gate fidelity by year-end, an important milestone toward quantum advantage.

Rigetti recently released its Cepheus-1 system, which successfully met the fidelity target while reducing error rates. This launch represents the industry’s largest multi-chip quantum processor and validates the scalability of Rigetti’s architecture.

Benchmark believes these advancements strengthen Rigetti’s roadmap toward a 1,000+ qubit system with 99.9% fidelity, error correction, and sub-50ns gate speeds necessary for achieving quantum advantage. Management continues to project a 3-4 year timeline to reach quantum advantage.

The company added $350 million to its balance sheet during the period and now has $570 million in cash, which Benchmark considers more than sufficient to support continued investment until commercialization. With a market capitalization of $5.23 billion, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access detailed financial health metrics and 12 additional ProTips for RGTI through InvestingPro’s comprehensive research reports.

In other recent news, Rigetti Computing reported its second-quarter 2025 earnings, revealing a revenue of $1.8 million, which was below the forecasted $1.87 million. The company’s earnings per share also missed expectations, with a loss of $0.05. In response, Needham reiterated its Buy rating on Rigetti Computing and maintained a price target of $18.00, citing the company’s progress despite the revenue shortfall. Cantor Fitzgerald also adjusted its price target for Rigetti Computing, raising it to $18.00 from $15.00, while keeping an Overweight rating. This adjustment reflects the firm’s outlook on Rigetti’s market potential, with a projected enterprise value to sales ratio increase. Both analyst firms seem to hold a positive long-term view on Rigetti’s potential in the quantum computing sector. These developments come as the industry anticipates the reauthorization of the Department of Energy Quantum Leadership Act.

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