Rigetti Computing's Stock Surge Amidst Quantum Market Revival

Rigetti Computing's stock has surged to about $9 following its all-time low of $0.38, showing a remarkable turnaround. Analysts predict future revenue growth amid increasing interest in quantum systems, despite past underperformance.

Date: 24-03-2025

AI Rating: 4

Earnings Per Share and Revenue Growth
While specific Earnings Per Share (EPS) figures were not mentioned, Rigetti reported generating $13 million in revenue in 2022, falling short of its initial forecast of $18 million. Looking forward, analysts estimate a projected revenue increase of 30% in 2025, 140% in 2026, and 48% to $50 million by 2027.

Valuation Concerns
Despite the promising growth predictions, Rigetti is valued at a staggering 57 times its projected sales for 2027. This high valuation could limit its upside potential and make it susceptible to greater stock price declines in the event of a market downturn.

Nvidia's Strong Position
On the other hand, Nvidia's growth trajectory looks very promising with revenue doubling during fiscal 2024 and fiscal 2025, suggesting solid revenue growth. Analysts expect Nvidia's revenue and EPS to rise at a CAGR of 31% from fiscal 2025 to fiscal 2028. This indicates a robust financial outlook compared to Rigetti.

Nvidia's significant market share in the AI chip sector, combined with its established customer base including major firms like Microsoft and Amazon, positions it as a more stable investment compared to Rigetti, which is facing stiff competition and high valuations.

Stocks: RGTI NVDA