Shares of Rigetti Computing, a prominent player in the quantum computing sector, experienced volatility today. Initially, the stock fell by around 11%, but managed to recover, trading approximately 2% higher by midday. The fluctuating performance was partly due to the broader market impact of rising U.S. Treasury yields, which have recently affected various stocks. However, a significant factor that influenced Rigetti’s stock today was a notable price target increase from a Wall Street analyst.
Craig Ellis, an analyst from B. Riley Financial, reaffirmed his ‘buy’ rating on Rigetti and raised the stock’s price target from $19 to $35. Ellis’s optimism is driven by Rigetti’s progress in the quantum computing realm and noted the interest from the U.S. Department of Energy’s National Laboratories in commercializing quantum technology. Rigetti recently secured a $5.8 million contract with the U.S. Air Force Research Laboratory to lead developments in superconducting quantum networking, potentially the next evolution of internet technology.
The quantum computing field is seen as having immense transformative potential, similar to artificial intelligence. Rigetti’s leadership in this space could make it an attractive long-term investment if it realizes its technological promise. However, the company currently generates minimal revenue despite its substantial market cap, suggesting that investors should consider the stock a high-risk, speculative investment for now.
As interest grows around quantum technology, the performance of Rigetti’s stock will likely continue to draw attention, particularly as it navigates the challenges of commercialization amidst market fluctuations influenced by shifts in Treasury yields.