Rigetti (RGTI) Jumps 12% on $350M Raise – Strong Cash Position, Weak Revenue Growth

Quantum computing company Rigetti Computing (RGTI) surged nearly 12% on Wednesday after announcing it completed a $350 million at-the-market (ATM) equity offering. The raise lifts Rigetti’s total cash reserves to around $575 million. The company now has zero debt.

The fresh capital will support Rigetti’s expansion plans. These include scaling its superconducting quantum hardware, boosting in-house chip production at its Fab-1 facility, and potentially pursuing strategic partnerships or acquisitions.

Rigetti Plans to Scale Quantum Systems and Chip Production

The ATM structure enabled Rigetti to issue shares incrementally, thereby helping to avoid the volatility that sometimes accompanies a large one-time offering. The market reaction was positive. Investors appear to be betting that Rigetti’s stronger balance sheet gives it a better chance to compete in the crowded quantum computing space.

Rigetti said it will use the funds to cover working capital needs, operational expenses, and capital expenditures. Part of the money will also go toward scaling its hardware offerings, which include 24- to 84-qubit systems and its newer 9-qubit Novera QPU. The company offers both cloud-based and on-premise quantum computing solutions.

One of Rigetti’s key differentiators is its in-house manufacturing. Fab-1 is the industry’s first dedicated and integrated quantum device fabrication plant. This gives the company more control over chip production and intellectual property, which can help speed up development and reduce reliance on outside suppliers.

_{Rigetti’s operating costs remain high compared to revenue. Source: Main Street Data}

Investors Look for Substance

The raise does come with trade-offs. Issuing more shares dilutes existing shareholders. That means investors now own a smaller piece of the company. However, some may see that as a fair price for a clean balance sheet and improved funding visibility.

Rigetti has no near-term revenue inflection point in sight. That puts pressure on the company to show tangible progress with its technology and partnerships in the coming quarters. With many quantum companies still in the R&D phase, investors are looking for signs of real-world traction.

Still, a 12% jump on the day of the announcement shows the market liked what it heard. Rigetti now has one of the strongest cash positions in the quantum space. Whether it can turn that into sustained growth remains to be seen.

Is RGTI Stock a Good Buy?

On the Street, Rigetti boasts a Strong Buy, based on five analysts’ ratings. The average RGTI stock price target is $15, implying a 20.24% upside.

See more RGTI analyst ratings