Rigetti Computing (RGTI) is catching the spotlight as the quantum computing race heats up. After Microsoft (MSFT) unveiled its first quantum chip, Majorana 1, quantum-related stocks, including Rigetti, saw a boost. Investors are taking notice, and analysts see more room to grow. Recently, equity research firm Benchmark raised its price target on Rigetti to $14 while keeping a Buy rating. RGTI stock has gained over 290% over the past three months.
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Why Benchmark Is Bullish on Rigetti
Benchmark Equity Research recently hosted a call with Rigetti’s CEO, Subodh Kulkarni, and CFO, Jeff Bertelsen. Following the discussion, analyst David Williams of Benchmark Co. expressed confidence in Rigetti’s technology and its growing role in AI applications. The firm highlighted three key reasons for its positive stance:
- Solid Technology Roadmap: Rigetti is making steady progress toward higher fidelity, a critical measure of quantum accuracy. It recently improved qubit fidelity to 99.5% from the mid-90s in just two years. Looking ahead, it targets a fidelity of 99.7% for the next 4 years.
- Strong Financial Position: With $220 million in cash, Rigetti has enough capital to operate for at least three years. This could extend further with potential government funding, including the National Quantum Initiative Act, which allocates $2.7 billion over five years.
- Growing AI Opportunity: There is growing demand for quantum-powered AI solutions, especially in synthetic data generation. Rigetti is working on using quantum computing to solve the challenge of producing accurate data, which is key as AI models become more advanced.
Is Rigetti a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on unanimous five Buys assigned in the past three months, as indicated by the graphic below. The average RGTI price target of $15.25 per share implies 41.86% upside potential.
