Rigetti Computing, Inc. (RGTI): A Bull Case Theory

We came across a bullish thesis on Rigetti Computing, Inc. on Topstocktrader’s Substack. In this article, we will summarize the bulls’ thesis on RGTI. Rigetti Computing, Inc.'s share was trading at $17.14 as of July 17^th.

Rigetti Computing, Inc. (NASDAQ: RGTI) is a pioneer in full-stack quantum-classical computing, building superconducting gate-based processors like its 84-qubit Ankaa-3 system and offering quantum computing as a service (QCaaS) via the cloud. Its technology enables enterprises and researchers to access quantum capabilities without large infrastructure investments, targeting applications in drug discovery, logistics, and climate modeling.

Rigetti’s focus on scalable, high-fidelity systems, exemplified by a 99.5% two-qubit gate fidelity, and partnerships such as a $35 million deal with Quanta Computer strengthen its long-term growth prospects. A recent $350 million stock sale boosted cash reserves to $575 million, giving Rigetti a debt-free balance sheet and funding runway through 2031, critical in this capital-intensive industry.

While 2024 revenue declined 10% year-over-year to $10.79 million and operating losses widened to $200.99 million due to an 82% rise in expenses, the robust cash position underpins continued R&D investment. Analysts maintain a “Strong Buy” rating with a $14.2 price target versus the current $12.72 share price, reflecting confidence in its strategic direction.

Recent grants, like a £3.5 million Innovate UK award and a $5.5 million AFOSR contract, validate its technology and expand partnerships. Technical indicators suggest a consolidation phase with support near $12.50–$12.70, presenting an attractive entry for risk-tolerant investors. Rigetti’s competitive moat lies in its technological edge and financial flexibility, positioning it to capitalize on the accelerating quantum computing sector, with upside potential amplified by favorable sentiment and strong institutional support.

Previously we covered a bullish thesis on IonQ, Inc. by Kai Timmermann in January 2025, which highlighted its ion-trap technology, rapid revenue growth, and mounting cost pressures. The company’s stock price has depreciated approximately by 43% since our coverage. This is because rising expenses and weak adoption hurt sentiment. The thesis still stands as IonQ remains a leading innovator. Topstocktrader shares a similar view but emphasizes Rigetti’s stronger cash position and scalable superconducting systems.

Rigetti Computing, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held RGTI at the end of the first quarter which was 17 in the previous quarter. While we acknowledge the potential of RGTI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.