- Quantum Breakthrough: 36‑Qubit System with 99.5% Fidelity
Rigetti revealed its new 36‑qubit modular quantum computer achieved a median two‑qubit gate fidelity of 99.5%, roughly doubling performance from its previous 84‑qubit Ankaa‑3 system. This traction caused RGTI stock to soar about 22–30% on July 16.
The system is built from four 9‑qubit chiplets and showcases progress toward a larger 100‑qubit platform slated by year‑end.
- Strong Balance Sheet & Cash Runway
Rigetti recently completed a $350 million at‑the‑market equity offering, boosting its cash reserve to approximately $575 million with zero debt — enough runway for six years of R&D.
But this comes amid modest revenues (~$1.5 million in Q1 FY25, down ~52% YoY) and a high forward Price‐to‐Sales multiple (~410×, compared to ~127× for IonQ).
- Bullish Analyst Sentiment
Cantor Fitzgerald analyst Troy Jensen issued a bullish note, reinforcing the “Strong Buy” consensus from five firms and a 12‑month target near $14.20 — though current prices (~$17) slightly exceed that estimate.
Market Reaction & Analyst Views
- Price surge: Shares jumped ~28.9% intraday on July 16; various outlets (Yahoo Finance, Motley Fool, TipRanks) pointed to the milestone as the catalyst.
- Analyst outlook: Continuing with Strong Buy ratings, though modest price targets suggest some caution.
- Risks to consider: High valuation multiples, limited current revenue, and heavy reliance on volatile contracts underscore execution risk.
🔭 What’s Next
- Upcoming launch: The 36‑qubit modular system is expected to go live on August 15, according to TipRanks.
- Goal for 100 qubits: Rigetti targets a 100‑qubit system with similar fidelity by end of 2025.
- Earnings & milestones: Watch for updates on development progress, revenue execution, and possible strategic partnerships like government or enterprise trials.
🧩 Summary Table
| Factor | Details |
| Catalyst | 36‑qubit system with 99.5% fidelity |
| Stock reaction | +22–30% surge on tech news |
| Balance sheet | $575M in cash, no debt |
| Revenue | $1.47M in Q1 FY25 (~52% YoY) |
| Valuation | Forward P/S ratio ~410× |
| Analyst sentiment | Strong Buy; avg target ~$14.2 |
