Street Calls of the Week
BERKELEY/DELFT - Rigetti Computing, Inc. (NASDAQ:RGTI), whose stock has surged over 31% in the past week according to InvestingPro data, has secured a three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) to advance superconducting quantum networking, according to a press release statement issued Thursday.
The quantum computing company, which maintains a strong balance sheet with more cash than debt and a healthy current ratio of 41.57, will collaborate with Dutch startup QphoX on the project, which aims to develop systems that provide entanglement between superconducting qubits and optical photons—a fundamental component for quantum networking.
The research focuses on converting microwave signals used to control superconducting qubits into optical photons that can travel along fiber optic networks. This conversion represents a key technical challenge in networking superconducting quantum computers.
"By joining Rigetti’s leadership in designing, fabricating, and operating superconducting qubits with QphoX’s world-class transduction technology, and AFRL’s expertise in hybrid networked quantum systems, this is an exciting opportunity to advance superconducting quantum networking," said Dr. Subodh Kulkarni, Rigetti CEO.
The project builds on previous work by the two companies, which successfully demonstrated qubit-transducer systems performing optical single-shot qubit readout. The team plans to combine Rigetti’s superconducting microwave qubits with QphoX’s single-photon microwave-optical transducers.
Matt LaHaye, principal research physicist with AFRL, noted that "Interconnects that link superconducting qubit processors with telecom QLANs will be a transformative step to investigations of entanglement distribution for fundamental research and capabilities for Air Force and DoD operations."
Quantum networking could potentially enable distributed quantum computing and development of a secure quantum internet, similar to how classical networks connect traditional computing systems.
Rigetti Computing, based in Berkeley, California, has operated quantum computers over the cloud since 2017 and manufactures its quantum chips in-house at its dedicated facility. The company’s stock is currently trading near its 52-week high of $22.13, though InvestingPro analysis suggests the stock may be overvalued at current levels. Investors seeking deeper insights can access comprehensive analysis and 15 additional ProTips through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.
In other recent news, Rigetti Computing reported its second-quarter 2025 earnings, revealing a revenue of $1.8 million, which fell short of the forecasted $1.87 million. The company’s earnings per share (EPS) also missed expectations, recording a loss of $0.05. Despite these results, Rigetti Computing continues to make progress on its chiplet-based scaling strategy, with plans to deliver a 100-qubit multi-chiplet QPU by the end of the year. Benchmark has raised its price target for Rigetti Computing to $20, maintaining a Buy rating due to this progress. Similarly, Cantor Fitzgerald increased its price target to $18, citing market potential and maintaining an Overweight rating. Needham reiterated its Buy rating with an $18 price target, acknowledging that Rigetti’s Q2 revenue exceeded their own projections. The company is also awaiting the reauthorization of the Department of Energy Quantum Leadership Act. These developments reflect the ongoing interest and investment in Rigetti’s quantum computing advancements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.