Deep Analysis Shows Rigetti's High-Risk Growth Horizon (Rating Upgrade)
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Rigetti Computing, Inc. is focusing on multi-chip scaling and its in-house Fab-1 to compete with IBM and IonQ in the quantum computing space. Despite heavy R&D expenses leading to significant losses and sluggish revenue growth, the potential for high returns exists. However, the company's high cash burn rate and potential for equity dilution are concerns.
March 14, 2025 | 2:45 pm
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Rigetti Computing is investing heavily in R&D to compete in the quantum computing space, but faces challenges with high cash burn and potential equity dilution. Despite sluggish revenue growth, the potential for high returns exists.
Rigetti's focus on multi-chip scaling and in-house Fab-1 shows commitment to growth in quantum computing. However, the high R&D costs and slow revenue growth are concerning. The company's liquidity is being drained by a $60M annual burn, raising the risk of equity dilution. Despite these challenges, the potential for high returns could justify a small investment, making the short-term impact neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100