Is Rigetti Computing an Excellent Quantum Computing Stock to Buy Right Now? | RGTI Stock Analysis
Summary
Parkev analyzes Rigetti Computing following its letter of intent with the US Department of Commerce for up to $100 million in milestone-based funding. Parkev explains that the company is striving for critical technical benchmarks, such as 99.9% qubit gate fidelity and reduced gate speeds, which are essential for commercial viability. Despite these positive developments, Parkev notes that the company's revenue remains highly volatile and 'lumpy' because it relies on short-term government and research contracts.
From a financial perspective, Parkev highlights that Rigetti has a significant cash reserve of $541 million, providing a runway of approximately four to five years against its current operating losses of about $120 million annually. Parkev observes that the stock's valuation has become more reasonable, with the forward price-to-sales ratio dropping from over 300 to approximately 114. However, Parkev maintains a cautious stance, suggesting that the risk-reward profile is not yet optimal for most investors.
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Reasoning: Parkev argues that although the company has reached certain milestones and the valuation is more attractive than in late 2025 (dropping from a forward P/S of 300 down to 114), it is still a very high-risk 'pre-revenue' style investment. Parkev states that the revenue is lumpy and the cash burn is significant, leading him to advise waiting for an even better entry point rather than buying now.