Rigetti Computing Stock (RGTI) Climbs as Quantum Leap Brings Analyst PT Hike

Rigetti Computing (NASDAQ: RGTI) is riding a wave of investor enthusiasm today, fueled by a significant breakthrough in its quantum computing technology, and a boosted analyst price target.

RGTI's stock price has added more than 19% through the early morning trade, reflecting the market's positive response to the announcement that its 36-qubit system has achieved an impressive 99.5% accuracy.

The achievement of 99.5% median two-qubit gate fidelity is particularly noteworthy. It effectively halves the error rate compared to Rigetti's previous 84-qubit Ankaa-3 system, a critical improvement for performing complex quantum calculations. This advancement directly addresses one of the biggest challenges in quantum computing: maintaining qubit coherence and minimizing errors. The higher the fidelity, the more reliable and useful the quantum computer becomes.

Despite the positive sentiment, it's important to remember the volatility that Rigetti's stock has experienced this year. Early this year, the stock reached an all-time high above $20, fuelled by general excitement surrounding quantum computing, particularly in the wake of Google's announcement of its Willow quantum computer. However, the stock traded down from there before finding a new wave of buyers.

Analyst consensus on Rigetti remains generally positive, with a “Buy” rating prevailing. Alliance Global Partners raised its price target from $16 to $18 today, reaffirming its Buy rating, indicating confidence in Rigetti's long-term prospects and the belief that the company is on it's way to scaling beyond 100 qubits.

Rigetti's modular, multi-chip architecture is a key differentiator in the quantum computing space. This design allows the company to expand qubit capacity without sacrificing performance, a crucial factor in achieving its goal of a 100+ qubit system by the end of 2025. While other companies are pursuing different approaches to quantum computing, Rigetti's focus on scalability and fidelity positions it as a strong contender in the race to build a commercially viable quantum computer.

While the company faces financial challenges and the quantum computing market remains highly competitive, Rigetti's recent breakthrough and strategic approach to scalability suggest continued momentum in the short term.