Quantum computers hold the potential to transform the computing industry in as dramatic a fashion as artificial intelligence, perhaps more so. The promise of these machines is that they will harness quantum mechanics to solve extremely complicated calculations in minutes that would take today's best supercomputers centuries.
That potential was a contributing factor to shares of Rigetti Computing (RGTI -4.12%) soaring to a 52-week high of $58.15 last year. Since then, though, the stock has tumbled, reaching a 52-week low of $12.53 in March. It still trades near the lower end of that range, despite working with semiconductor chip leader Nvidia to bring quantum computing capabilities to AI supercomputers.
The situation appears poised to change, however. The company has made strides that point to a rebound in share price ahead.
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How Rigetti stands out among competitors
The potential power of quantum computers has attracted a number of enterprises, large and small, to the field. What sets them apart are their distinct approaches to constructing quantum devices. At the heart of every quantum computer are qubits -- fundamental units of information that serve the same role as binary bits do in a classical computer. But there are numerous ways to make those qubits, each with advantages and disadvantages, and various players in the space are trying different ones.
Rigetti uses superconducting qubits as the technology behind its quantum processing units (QPUs), which act as the brain and perform calculations in its machines.
Superconducting qubits have the advantage of leveraging existing semiconductor chip manufacturing processes such as optical lithography. Rigetti is pursuing a chiplet-based architecture. This strings together a number of small chips to create the QPU, allowing for faster and more scalable quantum computers. Those attributes make them a compelling choice to combine with Nvidia's proprietary quantum platform, NVQLink.
With NVQLink, Nvidia has created a technology that can connect today's supercomputers with quantum machines. Such hybrid systems will be a key step toward broader adoption of quantum computers, which currently remain too expensive, cumbersome, and inaccurate to achieve widespread usage on their own. For instance, in order to function, quantum computers using superconducting qubits require special cryogenic chambers to keep the equipment at temperatures close to absolute zero.
NASDAQ: RGTI
Key Data Points
Rigetti's rising momentum
Rigetti isn't the only quantum computing business partnering with Nvidia, but some signs suggest its technology is poised to capture a meaningful share of the quantum computing market. The company is also collaborating with Hewlett Packard Enterprise to develop a hybrid quantum-classical supercomputer.
Such deals helped Rigetti post revenue of $5.1 million in the second quarter, up from $1.8 million in 2025. Also in Q2, Rigetti was among a handful of quantum computer enterprises selected by the U.S. Department of Commerce to receive funding under the CHIPS and Science Act. The government is investing $100 million in the company -- funds that it will use to "address key technical challenges" that its hardware faces.
Rigetti's stock has already ticked up since the company reported its Q2 results on Aug. 6. On that date, shares closed at $16.53, but the stock ended trading on Aug. 14 at $18.82. If the business can continue to build on its current momentum, shares could rise further.
That said, Rigetti shares are likely to experience plenty of volatility ahead, based on their beta of 2, which reflects their history of oscillating more wildly than the market. Therefore, this is not a stock for the faint of heart.
