Can Rigetti's Need for a Quantum Fab Reshape Its Long-Term Moat?

Per the third-quarter earnings call, Rigetti Computing RGTI commented about eventually needing a more advanced quantum chip fabrication facility. The company knows its current 150mm Fremont fab can support progress through 2027, yet it will not be enough to reach the next performance frontier—specifically, the >99.9% fidelity levels required for commercial-grade quantum systems. Instead of leaving this as an open risk, management has already outlined practical solutions: exploring partnerships with existing superconducting-oriented foundries, participating in upcoming U.S. government quantum manufacturing initiatives, and, if needed, preparing to build a more modern 200–300mm fab with better tooling and automation.

From an investor standpoint, the possibility of a future fab is not just a technical hurdle—it could become a meaningful competitive advantage if executed well. A move to a more advanced fabrication setup, whether through a government-backed initiative, a foundry partnership, or a purpose-built Rigetti facility, would give the company tighter control over process quality, better qubit consistency and yields, and a clearer path to higher fidelities. Those improvements translate directly into stronger long-term economics and greater differentiation versus peers who remain constrained by external manufacturing limits. In that sense, the fab discussion signals not added risk, but a potential turning point where Rigetti strengthens the foundation of its technology and positions itself more securely for the commercial quantum era.

Peers Updates

Quantum Computing Inc. QUBT has delivered its first commercial entangled-photon source to a leading research organization in South Korea, signaling the market launch of its telecom C-band photonic platform built for quantum networking and secure communications.

In parallel, the company is scaling production at its photonic foundry in Tempe, AZ, while expanding into quantum sensing and cybersecurity through initial customer pilots. Although revenue contribution remains at an early stage, these developments highlight QCi’s shift from pure research toward commercial deployment and product-led growth.

D-Wave Quantum QBTS has transitioned its new Advantage2 annealing system from limited preview to full commercial availability, representing a significant milestone in its commercialization efforts. The platform now offers more than 4,400 qubits with enhanced connectivity, improved coherence, and higher energy performance.

The platform is accessible to enterprise and research customers across more than 40 countries through the Leap cloud service. In parallel, the company is expanding its hybrid capabilities that blend quantum annealing with classical compute, targeting real-world adoption in areas such as logistics optimization, AI-driven decision systems, and financial modeling.

Rigetti’s Price Performance, Valuation and Estimates

Shares of RGTI have gained 84.9% in the year-to-date period compared with the industry’s growth of 9.9%.

From a valuation standpoint, Rigetti trades at a price-to-book ratio of 24.69, above the industry average. RGTI carries a Value Score of F.

The Zacks Consensus Estimate for Rigetti’s 2025 earnings implies a significant 88.9% decline 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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