- Rigetti Targets 40%+ Growth in 2025 – The company plans to launch 36-qubit (Q2) and 108-qubit (Q4) systems, reducing error rates by 2x.
- Strong Financial Position – Rigetti holds $225M in cash, but Q3-24 revenue dropped to $2.4M from $3.1M YoY, impacting margins.
- Advancements in Qubit Fidelity – The Ankaa-3 system achieved 99.5% two-qubit gate fidelity, a crucial step toward fault-tolerant quantum computing.
- Key Partnerships & AI Integration – Collaborations with Amazon, Microsoft, Nvidia, and Quantum Machines support scaling and automation, improving calibration to 99.9% single-qubit fidelity.
- Risks in Scaling & Government Dependency – Revenue relies on government contracts, facing hurdles like National Quantum Initiative (NQI) Act delays and competition from IBM and Google.
Investment Thesis
Rigetti Computing, Inc. (NASDAQ:RGTI) is positioning itself for explosive growth, targeting 40%+ revenue expansion in CY25 with the anticipated launch of its 36-qubit and 108-qubit systems. The company’s modular approach to scaling qubits and reducing error rates solidifies. Yiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degrees from U.K. business schools. Investment Style: We focus on GARP/Value stocks—high-quality, reasonably priced businesses with strong moats and significant growth potential. We prioritize fundamentals and seek stocks trading at a discount to intrinsic value, with a clear margin of safety. Our long-term approach (5-7 years) aims for wealth accumulation through compounding while emphasizing downside protection and sometimes taking contrarian views during market uncertainties.
