Rigetti’s 36-qubit multichip quantum computer achieves 99.5% state-of-the-art gate fidelity, validating its chiplet scaling approach.<\/p>\n<\/li>\n
A strong balance sheet with $571.6 million in cash provides a runway through 2026, despite minimal revenues.<\/p>\n<\/li>\n
Extreme valuation at 495 times sales highlights the speculative nature of quantum computing investments.<\/p>\n<\/li>\n
10 stocks we like better than Rigetti Computing \u203a<\/p>\n<\/li>\n<\/ul>\n
Rigetti Computing<\/strong> (NASDAQ: RGTI) has surged 1,820% over the past 12 months — topping D-Wave Quantum<\/strong>‘s (NYSE: QBTS) 1,550% gain and IonQ<\/strong>‘s 505% (NYSE: IONQ). Yet, today’s $5.3 billion market cap looks disconnected from a company posting just $1.8 million in quarterly revenue while losing nearly $40 million in the most recent quarter.<\/p>\n Investors are paying venture-style multiples for technology that still lacks commercial traction. Yet, the massive opportunity inherent in quantum computing could make this tech stock a steal — even at these elevated levels. Let’s dig deeper to find out whether this premium-laden growth stock is worth the price of admission.<\/p>\n Where to invest $1,000 right now?<\/strong> Our analyst team just revealed what they believe are the 10 best stocks <\/strong>to buy right now. Continue \u00bb<\/strong><\/p>\n Image source: Getty Images.<\/p>\n Technical breakthroughs mask commercial struggles<\/p>\n In August 2025, Rigetti’s modular 36-qubit system — four 9-qubit chiplets linked together — achieved 99.5% median two-qubit gate fidelity, halving errors from its Ankaa-3 machine. A 100-plus qubit chiplet system is targeted by year-end. Think of it like building a supercomputer from many processors instead of one impossible monolith.<\/p>\n Rigetti’s superconducting qubits operate at fractions of a degree above absolute zero. The company’s two-qubit gates run in tens of nanoseconds, versus tens of microseconds for trapped-ion or neutral-atom systems — roughly 100 to 1,000 times faster. Faster gates allow more operations within limited coherence times, though rival platforms often deliver higher fidelities and longer lifetimes.<\/p>\n On the financial front, second-quarter 2025 revenue fell to $1.8 million from $3.1 million a year ago, reflecting contract timing. Income comes from cloud access, custom algorithm work, and government research and development (R&D). Operating losses of $19.9 million in the most recent quarter underscore the capital-intensive nature of this nascent field.<\/p>\n In short, technical progress is ramping while revenues remain minimal.<\/p>\n Government validation provides crucial backing<\/p>\n DARPA tapped Rigetti as a performer in its Quantum Benchmarking Initiative — a program seeking “utility-scale” quantum computers by 2033 — alongside IBM<\/strong> and IonQ. The Defense Advanced Research Projects Agency’s (DARPA) track record includes the internet, GPS, and stealth aircraft, making its backing a meaningful vote of confidence.<\/p>\n Meanwhile, Washington is advancing the National Quantum Initiative (NQI) Reauthorization Act (approximately $2.7 billion) and the Department of Energy Quantum Leadership Act (approximately $2.5 billion). Europe has pledged about 2 billion euros at the European Union (E.U.) level and another 9 billion euros from member states.<\/p>\n China’s widely cited $10 billion for quantum computing projects represents a one-time Hefei National Lab project, not recurring spend. The bottom line is that global governments are racing to fund credible players in this emerging space.<\/p>\n How does Rigetti fit into this government-backed innovation bonanza? Rigetti manufactures at its Fab-1 facility using semiconductor-style modular methods. By wiring smaller chips into larger systems, it sidesteps yield issues that plagued single-chip designs. IBM’s 1,121-qubit Condor processor (2023) underscored the limits of monolithic scaling and pushed IBM itself toward modular architectures.<\/p>\n Put simply, Rigetti was ahead of the curve in employing modular designs — a critical decision that could translate into a key competitive advantage.<\/p>\n Extreme valuation demands caution<\/p>\n Rigetti raised $350 million in Q2 via an at-the-market program, ending the quarter with $571.6 million in cash and no debt. That buys time through 2026, but the opportunistic raise at lofty prices signals management’s awareness that current valuations may not last.<\/p>\n At a $5.3 billion market cap on approximately $11 million-ish in trailing revenue, Rigetti stock trades at around 495 times sales. By comparison, traditional semiconductor giant Nvidia<\/strong> trades at approximately 40 times forward earnings — with profits, proven demand, and a rock-solid moat. While rich, Nvidia’s premium pales in comparison to those of Rigetti and other pure-play quantum stocks, all of which are cash-flow negative at the moment.<\/p>\n A speculative bet on computing’s future<\/p>\n Quantum computing could be the next revolution — or an expensive science experiment. Rigetti’s 36-qubit milestone and DARPA backing validate its chiplet strategy, and $571.6 million in cash provides breathing room.<\/p>\n Still, at 495 times trailing sales, the stock’s valuation prices in perfection. Thus, risk-tolerant investors might cap exposure at no more than 2% of a well-diversified portfolio. For most, though, it makes sense to wait for proof of real commercial traction before betting on Rigetti as a breakthrough play in quantum’s uncertain future.<\/p>\n Should you invest $1,000 in Rigetti Computing right now?<\/p>\n Before you buy stock in Rigetti Computing, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/strong> for investors to buy now\u2026 and Rigetti Computing wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you\u2019d have $651,599<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,067,639<\/strong>!*<\/p>\n Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,049% \u2014 a market-crushing outperformance compared to 185% for the S&P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n See the 10 stocks \u00bb<\/strong><\/p>\n *Stock Advisor returns as of August 25, 2025<\/p>\n George Budwell has positions in D-Wave Quantum, IonQ, Nvidia, and Rigetti Computing. The Motley Fool has positions in and recommends International Business Machines and Nvidia. The Motley Fool has a disclosure policy.<\/p>\n Disclaimer: For information purposes only. Past performance is not indicative of future results.<\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Rigetti’s 36-qubit multichip quantum computer achieves 99.5% state-of-the-art gate fidelity, validating its chiplet scaling approach. 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