Can Rigetti's Chiplet Strategy Secure Its Spot in DARPA's Next Phase?

Rigetti Computing RGTI is taking an aggressive step to scale its quantum systems with a chiplet-based design — smaller, high-quality modules linked together to overcome the limits of single-chip architectures. The company is targeting the rollout of a 4×9-qubit chiplet system in the near term and aims to exceed 100 qubits with 99.5%–99.7% median two-qubit fidelities by year-end. These milestones align with DARPA’s performance criteria as it narrows participants in its Quantum Benchmarking Initiative, a multi-year program to develop utility-scale systems with over 10,000 qubits. Achieving them could secure Rigetti’s place in the next phase and open the door to larger government contracts.

To support this plan, Rigetti has strengthened its operational base. In February, a $35 million investment from Quanta Computer brings both funding and manufacturing expertise, with Quanta set to produce much of the non-QPU hardware, such as control systems and refrigeration, thus allowing Rigetti to focus on chiplet design and integration. Meanwhile, projects like the AFOSR-backed ABAA fabrication program and Innovate UK partnerships, including a planned 36-qubit upgrade at the NQCC, aim to enhance chip quality and scalability. Key milestones for investors to watch in the remainder of 2025 include the upcoming 4×9 chiplet demonstration, DARPA’s Phase B decision, and progress in Quanta’s production.

Peers Updates

International Business Machines IBM has continued to advance its superconducting quantum roadmap, showcasing the 1,121-qubit Condor processor and outlining a path toward modular quantum systems. Alongside hardware gains, IBM is building out a robust quantum cloud platform and software ecosystem to drive developer adoption. The company’s near-term focus remains on improving gate fidelities, expanding system access, and preparing the architecture for integration into larger, modular configurations over the next several years.

IonQ IONQ is pursuing growth through its trapped-ion technology, which offers high coherence times and precise operations. The company’s 2025-end target centers on achieving AQ 64 (algorithmic qubits), a performance metric designed to better reflect real-world utility than raw qubit counts. IonQ is investing in scaling its hardware manufacturing capacity while expanding partnerships in cloud and enterprise markets. The longer-term strategy focuses on increasing algorithmic performance year over year to bridge toward commercially relevant quantum advantage.

Rigetti’s Price Performance, Valuation and Estimates

Shares of RGTI have gained 4.7% in the year-to-date period compared with the industry’s growth of 21.7%.

From a valuation standpoint, Rigetti trades at a price-to-book ratio of 22.41, above the industry average. RGTI carries a Value Score of F.

The Zacks Consensus Estimate for Rigetti’s 2025 earnings implies a significant 86.1% rise from the year-ago period.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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