Rigetti Computing’s (RGTI) stock jumped sharply on Wednesday after the company announced a major breakthrough in quantum computing. The achievement prompted a top analyst to boost their outlook, pointing to even more upside ahead for the stock. Following the news, five-star analyst Brian Kinstlinger of Alliance Global Partners raised his price target on RGTI from $16 to a Street-high of $18, while maintaining his Buy rating.
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What’s Happening with RGTI Stock?
RGTI stock jumped more than 30% on Wednesday after revealing a 36-qubit modular quantum computer with 99.5% accuracy. This new system, comprising four 9-qubit chiplets, exhibits significantly lower error rates than Rigetti’s earlier 84-qubit Ankaa-3 chip. CEO Subodh Kulkarni highlighted that superconducting qubits offer a significant advantage, with gate speeds more than 1,000 times faster than other technologies.
For context, a qubit is the basic unit of information in a quantum computer. More qubits with low error rates help quantum computers solve problems beyond the reach of today’s supercomputers.
Despite growing optimism, investors should note Rigetti’s stock volatility. Shares hit a record high of $20 earlier this year amid quantum hype but remain 17% below that peak. Still, the stock has jumped over 68% in the past six months.
Alliance Global Hikes Price Target on RGTI
Alliance’s Kinstlinger boosted his price target on RGTI after the company hit its mid-year goal, achieving 99.5% accuracy in its 36-qubit quantum system. He believes Rigetti is making strong progress toward building systems with over 100 qubits. The company is on track to release this higher-capacity system, also targeting 99.5% fidelity, by the end of 2025. Rigetti also aims to roll out its new 36-qubit platform on August 15.
Kinstlinger’s new price target of $18 suggests more than 8% upside from current levels, standing in contrast to the average Wall Street consensus, which points to a potential downside.
Is RGTI a Good Stock to Buy?
According to TipRanks, RGTI stock has received a Strong Buy consensus rating, with seven Buys assigned in the last three months. The average Rigetti stock price target is $15.0, suggesting a potential downside of over 9% from the current level.
