SAN FRANCISCO, CALIFORNIA – Rigetti Computing, a company founded in 2013, is making waves in the quantum computing industry. Based in California, Rigetti has developed a cloud-based platform called Forest that offers full-stack quantum supercomputer services. Despite going public through a SPAC transaction in 2021, Rigetti’s stock performance has been disappointing, with a sharp decline in value from its initial trading price of around $9 to the current level of $1.

However, there seems to be some positive momentum for Rigetti this year, with the stock showing a 16% increase year-to-date. Analysts are optimistic about Rigetti’s future, with a target price of $1.4 per share, suggesting a potential 35% upside. The recent launch of the QPU partnership program is expected to benefit Rigetti significantly, unlocking new opportunities in the quantum computing industry.

In the first quarter of the fiscal year, Rigetti saw over $3 million in revenue, reflecting a 39% year-over-year growth. The company’s revenue is primarily driven by technology development contracts and QPU sales. While Rigetti’s operating loss narrowed by 25% in the first quarter, the company still faces challenges in turning cash flow positive. Despite consistent losses, Rigetti has maintained steady liquidity, ending the quarter with over $102 million in cash and investments.

The Novera QPU partnership program is touted as a strategic move for Rigetti, aiming to advance technology development and drive QPU sales. By partnering with companies specializing in different aspects of quantum computing, Rigetti hopes to accelerate the development of a more efficient quantum computing system. This approach is seen as a way to secure a dominant market share in the future and solidify Rigetti’s position as a leader in the field.

Looking ahead, analysts believe that the partnership program could lead to future revenue growth for Rigetti, as early adopters of on-premise quantum computing solutions are likely to come from the program’s partners. While the technology is still in its early stages, the success of the partnership program could pave the way for increased adoption of quantum computing solutions in the market.

Despite the potential for growth, Rigetti remains a high-risk investment due to the developing nature of the quantum computing industry. Investors should be prepared for further R&D spending and potential share dilution in the future. Analysts recommend a cautious approach to investing in Rigetti, considering the limited total addressable market in the near term and the company’s reliance on financing for cash flow.

In conclusion, Rigetti Computing’s focus on quantum supercomputing services and strategic partnerships is positioning the company for growth in the evolving quantum computing industry. While the risks are high, the potential for reward is attractive for investors willing to navigate the uncertainties of this cutting-edge technology sector. With a price target of $1.4 per share and a projected upside of 35%, analysts rate Rigetti as a buy.