It’s been a great day for quantum chipmaker Rigetti Computing (RGTI), as its shares soared over 15% on Thursday afternoon. This followed news of the California-based designer’s new deal with the U.S. Air Force.
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On Thursday, Rigetti disclosed its new three-year contract for the Air Force Research Laboratory (AFRL), the organization that leads scientific research to support U.S. military technology. Under the contract, which is worth $5.8 million, Rigetti will tie up with Dutch quantum hardware manufacturer QphoX to develop improved superconducting quantum networking.
Rigetti Eyes Quantum Advancement
In other words, both firms will collaborate to advance the technology that will enable quantum computers to communicate over long distances. This will be based on superconducting qubits, which are ultra-cold circuits that store quantum info and can be in two states at once—a key feature of quantum computing.
Speaking on the partnership, Rigetti’s CEO, Dr. Subodh Kulkarni, noted that the project will combine Rigetti’s expertise in designing, creating, and operating superconducting qubits with QphoX’s transduction technology that converts quantum signals from microwave to optical form.
Transduction technology is important because superconducting quantum computers rely on microwave signals, while long-distance communication, such as through fiber optics, depends on optical photons. Both companies’ expertise will be combined with the U.S. Air Force research lab’s expertise in joining different types of quantum technologies into a single system that cooperates and communicates over long distances.
“We are very pleased that AFRL is supporting this technology, which is important for the U.S. to maintain its global leadership in quantum information science,” Kulkarni added.
Quantum Race Heats Up
Rigetti’s new partnership comes at a time when the race to develop powerful quantum computers and their networking capacities continues to make strides. Chipmaking giant Nvidia (NVDA), through its venture arm NVentures, is doubling down on its investments in quantum computing. So far, the unit has invested in QuEra, Quantinuum, and PsiQuantum.
Startups and Big Tech companies alike keep driving their projects forward to advance the field. This is even as investment firm Defiance ETFs‘s Quantum Computing exchange-traded fund (QTUM) recently exceeded $2 billion in assets under management.
Is RGTI a Good Stock to Buy?
Turning to Wall Street, Rigetti’s shares have a Strong Buy consensus rating on TipRanks, based on seven Buys assigned by Wall Street analysts over the past three months. However, the average RGTI price target of $18.83 indicates a 25% downside risk from the current level.
