Rigetti Rides Quantum Momentum: Will Strategic Deals Boost Growth?
Rigetti Computing RGTI marked a significant milestone in February by entering a strategic collaboration with Quanta Computer, a global leader in electronics manufacturing. This agreement reflects a long-term commitment to advancing quantum computing technologies through a combination of financial backing, technological integration, and strategic deployment. Quanta has committed to a $35 million equity investment in Rigetti as part of the deal, signaling strong confidence in the company's quantum roadmap. Over the next five years, both companies plan to contribute more than $100 million each toward joint development initiatives. The collaboration aims to accelerate the commercialization of superconducting quantum processors, with an emphasis on building scalable, fault-tolerant systems that can be deployed across academic, enterprise, and government sectors.
Beyond financial support, this partnership opens the door for Rigetti to leverage Quanta's manufacturing scale, global reach, and operational infrastructure. For Rigetti, aligning with a hardware manufacturing powerhouse is critical to transitioning from research-stage prototypes to commercially viable quantum computing systems. The alliance is expected to focus on producing and distributing Rigetti's advanced quantum processing units, integrating them into broader computing frameworks, and advancing applications across logistics, pharmaceuticals, and machine learning. The timing of the partnership is strategic, coming on the heels of Rigetti's Ankaa-3 launch, an 84-qubit system boasting a 99.5% two-qubit gate fidelity. This positions the company to move quickly toward meaningful real-world deployment, solidifying its place in the emerging quantum computing economy.
Peer Companies Embrace Strategic Partnerships
In February, IonQ IONQ, another leader in quantum computing, partnered with General Dynamics Information Technology (GDIT) to bring quantum computing solutions to the government and defense sectors. This collaboration aims to co-develop and market advanced quantum processing and networking applications, addressing high-impact use cases such as quantum AI extensions and resource optimization.
Similarly, in January, D-Wave Quantum QBTS announced a partnership with Carahsoft Technology Corp., a prominent provider of IT solutions for government entities. This collaboration is intended to bring D-Wave's quantum computing technologies to public sector organizations through Carahsoft's reseller network and multiple procurement platforms.
Rigetti's Price Performance, Valuation and Estimates
Shares of RGTI have lost 22.6% in the year-to-date period against the industry 's growth of 10.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 16.38, above the industry average. RGTI carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Rigetti's 2025 earnings implies a significant 86.1% rise from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IonQ, Inc. (IONQ): Free Stock Analysis Report
Rigetti Computing, Inc. (RGTI): Free Stock Analysis Report
D-Wave Quantum Inc. (QBTS): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
36 minutes ago
- CTV News
Kirkland Lake hit by fourth water main break in a week
Some homes and businesses lost water service Friday after the town's fourth water main rupture in a week. The latest break hit Chateau Drive, following others on Al Wende Avenue and at Bloomfield Road. Mayor Stacy Wight said aging infrastructure is a known issue, with repairs slowed by funding gaps.
Globe and Mail
an hour ago
- Globe and Mail
G7 agrees to exempt U.S. companies from higher taxes
The United States and the Group of Seven nations have agreed to support a proposal that would exempt U.S. companies from some components of an existing global agreement, the G7 said in a statement on Saturday. The group has created a 'side-by-side' system in response to the U.S. administration agreeing to scrap the Section 899 retaliatory tax proposal from President Donald Trump's tax and spending bill, it said in a statement from Canada, the head of the rolling G7 presidency. The G7 said the plan recognizes existing U.S. minimum tax laws and aims to bring more stability to the international tax system. Opinion: The G7 is dead – time to move on to the G6 U.K. businesses are also spared higher taxes after the removal of Section 899 from Mr. Trump's tax and spending bill. Britain said businesses would benefit from greater certainty and stability following the agreement. Some British businesses had in recent weeks said they were worried about paying substantial additional tax due to the inclusion of Section 899, which has now been removed. 'Today's agreement provides much-needed certainty and stability for those businesses after they had raised their concerns,' Britain's finance minister Rachel Reeves said in a statement, adding that more work was needed to tackle aggressive tax planning and avoidance. G7 officials said that they look forward to discussing a solution that is 'acceptable and implementable to all.' In January, through an executive order, Trump declared that the global corporate minimum tax deal was not applicable in the U.S., effectively pulling out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries. He had also vowed to impose a retaliatory tax against countries that impose taxes on U.S. firms under the 2021 global tax agreement. This tax was considered detrimental to many foreign companies operating in the U.S.
Globe and Mail
2 hours ago
- Globe and Mail
Microsoft Stock (MSFT) Hits All-Time High as AI Trade Comes Roaring Back
Microsoft's (MSFT) stock is at an all-time high on June 27 and on the cusp of breaking above $500 a share as the artificial intelligence (AI) trade comes roaring back. Confident Investing Starts Here: MSFT stock was trading at $499.30 at noon hour and could close above $500 a share on a split adjusted basis. The current rally coming off April lows has pushed Microsoft's share price up 19% this year and put its market capitalization at $3.70 trillion, second only to Nvidia (NVDA) at $3.84 trillion. Analysts and traders on Wall Street are now debating which technology giant will be the first to reach a $4 trillion market cap, Microsoft or Nvidia. Several analyst have also been raising their ratings and price targets on MSFT stock during its current bull run. Wedbush tech analyst Daniel Ives recently raised his price target on Microsoft's shares to $600 from $515 while reiterating a Buy rating on the stock. Bullish Sentiment Analysts and investors are turning increasingly bullish on Microsoft as sentiment towards artificial intelligence (AI) again turns positive. The Seattle-based technology giant's share price has also been rising since the company reported strong first-quarter financial results in May that showed hefty growth in the Azure cloud computing unit. More recently, reports have surfaced that the Windows maker is planning to cut thousands of jobs as it looks to reduce its labor costs while increasing its AI spending. Microsoft is seen as a leader in generative AI and is cascading the technology across its various business segments and consumer-facing products. Is MSFT Stock a Buy? Microsoft's stock has a consensus Strong Buy rating among 35 Wall Street analysts. That rating is based on 30 Buy and five Hold recommendations issued in the last three months. The average price target on MSFT stock of $521.41 implies 4.71% upside from current levels. Disclaimer & Disclosure Report an Issue
