Can Rigetti's Quantum Fab Build a Sustainable Long-Term Edge?

During the third-quarter earnings call, Rigetti Computing RGTIacknowledged that advancing to the next stage of quantum performance will eventually require more sophisticated chip manufacturing capabilities. While its existing 150mm Fremont fab is sufficient to support development through 2027, management was clear that pushing toward commercial-grade systems, particularly achieving fidelities above 99.9%, is likely to demand more advanced fabrication infrastructure.

Notably, the company is not treating this as an unresolved challenge. Leadership laid out several realistic paths forward, including partnerships with foundries experienced in superconducting technologies, participation in emerging U.S. government-backed quantum manufacturing programs, and, if necessary, the option to develop a modern 200–300mm facility with improved tooling and automation.

From an investor’s perspective, the potential need for a new fab is less about risk and more about strategic upside. Gaining access to more advanced fabrication, whether through partnerships, public initiatives, or an in-house build, could materially strengthen Rigetti’s competitive position. Better control over manufacturing processes would improve qubit uniformity, yields and overall system reliability, all of which are critical for scaling toward commercial use cases.

Over time, these advantages could translate into stronger economics and clearer differentiation versus competitors that remain dependent on third-party manufacturing constraints. Seen through this lens, management comments suggest a proactive effort to turn a future requirement into a long-term moat rather than a bottleneck.

Peers Updates

Quantum Computing Inc. QUBT has completed its first commercial shipment of an entangled-photon source to a prominent research institution in South Korea, marking the initial market rollout of its telecom C-band photonic platform designed for quantum networking and secure communication applications.

At the same time, the company is ramping up manufacturing at its Tempe, AZ, photonic foundry and broadening its footprint into quantum sensing and cybersecurity through early-stage customer trials. While these efforts are still contributing modestly to revenue, they underscore QCi’s transition from a research-focused operation toward commercial execution, with a growing emphasis on product-driven expansion.

D-Wave Quantum QBTS has moved its new Advantage2 annealing system from a limited preview phase into full commercial release, marking a significant step forward in its broader commercialization strategy. The system now delivers more than 4,400 qubits, alongside stronger connectivity, longer coherence times and improved energy efficiency.

Advantage2 is available to enterprise and academic users in over 40 countries via the Leap cloud platform. At the same time, the company continues to enhance its hybrid offerings that combine quantum annealing with classical computing, with a focus on practical use cases such as logistics optimization, AI-enabled decision-making and complex financial analysis.

Rigetti’s Price Performance, Valuation and Estimates

Shares of RGTI have gained 71.6% in the last six-month period against the industry’s decline of 8.3%.

From a valuation standpoint, Rigetti trades at a price-to-book ratio of 20.95, 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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