Rigetti Computing Inc. (NASDAQ: RGTI) had a phenomenal increase in the stock price during the past week, from $7.22 on Monday to $9.37 at the end of the week, an increase of 29.69%. The increase places Rigetti among the top technology gainers and is attributed to the advances in the quantum computing industry and investor confidence in its growth potential.
This is how the market size for global quantum computing currently is pegged at $1.3 billion but could balloon by a CAGR of 32.7%, hitting $5.3 billion by 2029. Leading companies, like the founder of Rigetti in quantum computing, have rolled out the pioneering Novera quantum processor.
The developments in the industry have also been another catalyst for quantum stocks. For example, the advanced Willow chip by Google continued to boost the optimism in the market, which was positively reflected in the shares of companies like Rigetti and D-Wave Quantum (NYSE: QBTS) and IonQ (NYSE: IONQ).
While Rigetti ranks fifth in last week’s big gainers, analysts advise staying the course. The Seeking Alpha analyst Joseph Parrish underscored the great potential that Rigetti has but also spoke of risks when a firm needs cash. He went on to say, “The seeds of innovation are there, but materializing important results may take until the end of the decade.”
The wider quantum computing industry was also active, with D-Wave up 24% and Arqit Quantum (NASDAQ: ARQQ) soaring 50%. Still, IonQ is a standout, supported by excellent financial health, no debt, and a $360 million cash reserve.
With Rigetti’s shares gaining over 543% this month alone, the company exemplifies the explosive growth potential of quantum computing. However, as the sector evolves, investors are advised to weigh short-term gains against long-term risks in this dynamic and transformative industry.
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