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BERKELEY, Calif. - Quantum computing company Rigetti Computing, Inc. (NASDAQ:RGTI), which has seen its stock surge nearly 900% over the past year and currently commands a market capitalization of $3.72 billion, announced Wednesday it has reached its mid-year performance milestone of 99.5% median two-qubit gate fidelity on its modular 36-qubit system. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 18.82, despite operating at a loss.
The achievement represents a two-fold reduction in median two-qubit gate error rate compared to the company’s previous results on its 84-qubit Ankaa-3 system. The new system utilizes four 9-qubit chips tiled together, leveraging Rigetti’s modular chip technology. While the company reported revenues of $9.21 million in the last twelve months, InvestingPro analysis indicates analysts expect sales to decline in the current year.
"We benefit from the many advantages of superconducting qubits, including gate speeds more than 1,000x faster than other modalities like ion trap and pure atoms, and scalability," said Dr. Subodh Kulkarni, Rigetti CEO, in a press release statement.
Rigetti plans to launch the 36-qubit system on August 15 and maintains its timeline to release a 100+ qubit chiplet-based system with 99.5% median two-qubit gate fidelity before the end of 2025.
The company has been operating quantum computers over the cloud since 2017 and serves enterprise, government, and research clients through its Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits.
Rigetti designs and manufactures its chips in-house at Fab-1, which the company describes as the industry’s first dedicated and integrated quantum device manufacturing facility.
The company implements CZ gates, a commonly used two-qubit gate for executing quantum circuits with equivalent computational power to iSWAP gates. With analyst price targets ranging from $14 to $16, investors seeking deeper insights can access comprehensive analysis and 8 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Rigetti Computing Inc. has reported its Q1 2025 earnings, revealing an unexpected earnings per share (EPS) of $0.13, surpassing the forecasted loss of $0.05. However, the company’s revenue fell short of expectations, coming in at $1.47 million against a projected $2.82 million. The company has also completed a $350 million stock sale to fund its quantum computing growth, bringing its cash reserves to approximately $575 million with no debt. Analyst firms have shown varying levels of confidence in Rigetti’s prospects; Cantor Fitzgerald initiated coverage with an Overweight rating and a $15.00 price target, while Benchmark reiterated a Buy rating with a $14.00 target, citing the company’s technological advancements. Rigetti is poised to use the new funds for working capital, capital expenditures, and possibly strategic collaborations or acquisitions. The company is also focusing on technological advancements, aiming to increase its qubit count and fidelity by the end of 2025. These developments underscore Rigetti’s strategic positioning in the evolving quantum computing sector.
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