Rigetti Computing (RGTI) Stock Jumps on JPMorgan’s Quantum Investment News

TLDR

• Rigetti Computing stock jumped 25% on October 13 after JPMorgan announced a $10 billion initiative that includes quantum computing investment
• The stock has surged 185% in the past month and roughly 127% year-to-date, reaching around $54.91 per share
• The company has a market cap of approximately $14 billion despite generating only $1.8 million in revenue during Q2 2025
• Recent wins include $5.7 million in orders for Novera quantum computers and a $5.8 million Air Force contract for quantum networking
• All six Wall Street analysts rate the stock a buy, but average price targets sit around $20-24, well below the current trading price

Rigetti Computing shares climbed 25% on October 13 following JPMorgan Chase’s announcement of a $10 billion “Security and Resiliency Initiative.” The investment targets 27 industries and technologies, with quantum computing among the focus areas.

The rally pushed RGTI to around $54.91 per share. This latest jump caps a remarkable run for the stock, which has gained 185% over the past month alone.

The quantum computing sector saw broad gains after the JPMorgan news. Competitors D-Wave Quantum and IonQ posted similar increases as investors bet on the technology’s commercial potential.

Rigetti’s stock has been climbing steadily since September. The shares traded near $16 on September 12 before rallying to $28 by September 19.

By early October, the stock had pushed past $35. On October 3, it touched an intraday high near $40.60.

The company now carries a market cap of roughly $14 billion. At the October 9 closing price of $47.11, that valuation worked out to about 1,100 times trailing sales.

Trading volume has exploded during the rally. On October 2 alone, 144 million shares changed hands.

Recent Contract Wins Fuel Momentum

The stock surge follows several positive announcements in recent weeks. On September 30, Rigetti revealed $5.7 million in orders for its Novera quantum computers.

Two buyers placed the orders: an Asian tech manufacturer and a California AI startup. Each will receive a 9-qubit system for research and development work.

The deal represents about 72% of Rigetti’s entire 2024 revenue. Shares jumped 16-19% on the news as investors viewed it as proof of growing commercial demand.

Earlier in September, Rigetti won a three-year $5.8 million contract from the U.S. Air Force Research Laboratory. The project focuses on developing superconducting quantum networking technology.

The company will partner with photonics startup QphoX on the defense work. The stock rose 11-12% following that announcement.

In August, Rigetti launched its Cepheus-1 quantum processor. The 36-qubit system uses four linked chips and achieves 99.5% two-qubit fidelity.

CEO Subodh Kulkarni said the technology represents a clear path toward quantum advantage and fault tolerance. The system is available through Rigetti’s cloud platform and Microsoft Azure.

Financial Reality Lags Market Enthusiasm

Despite the stock gains, Rigetti’s financials remain challenging. The company reported just $1.8 million in revenue for Q2 2025, down 42% from $3.1 million in the year-ago quarter.

The net loss for the quarter came in at $39.7 million. Full-year 2024 revenue totaled only $10.8 million against a net loss of $201 million.

Gross margin fell to 31% in the latest quarter from 64% a year earlier. Higher costs drove the decline.

The company burns roughly $20-25 million in cash per quarter. However, Rigetti holds $571.6 million in cash with no debt after raising about $350 million in equity during Q2.

Analyst Views Split on Valuation

All six analysts covering Rigetti rate the stock a buy or strong buy. However, their price targets tell a different story.

The average 12-month target sits around $20-24, roughly 50% below current levels. Benchmark raised its target to $50 on October 7, while B. Riley lifted its target to $35.

Most other firms maintain targets in the teens or low twenties. Cantor Fitzgerald’s Troy Jensen has an $18 target, suggesting potential downside of about 60%.

Strategic Partnerships Expand Reach

Taiwanese electronics giant Quanta Computer invested $35 million in Rigetti as part of a broader $100 million collaboration. Quanta will help scale Rigetti’s hardware manufacturing capabilities.

In September, Rigetti signed a memorandum of understanding with India’s C-DAC to develop hybrid quantum-classical computing systems. The partnership could open access to the Indian market.

Montana State University installed Rigetti’s first on-premises Novera system at its QCORE lab in August. The deployment marks the company’s first university installation.

Rigetti designs and builds complete quantum computer systems using superconducting qubits. Customers can access its quantum processing units through the cloud or purchase on-site units.

The company’s Forest and QCS platforms provide software tools, APIs, and hybrid quantum-classical workflow support. The goal is moving quantum computing from laboratory demonstrations to practical enterprise applications.

JPMorgan’s $10 billion initiative announcement on October 13 drove the latest rally across quantum computing stocks, with Rigetti closing at approximately $54.91 per share.

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