After Receiving $100 Million From the Trump Administration, Is Rigetti Computing Stock a Screaming Buy?
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Last month, the Department of Commerce announced plans to invest up to $2 billion across nine quantum computing businesses over the next three years. Among these companies is Rigetti Computing (RGTI +5.71%), which is set to receive $100 million in CHIPS Act funding tied to certain research and development (R&D) milestones for its superconducting quantum systems. This gives a level of credibility to Rigetti's technology and is a strategic alignment with national priorities related to artificial intelligence (AI). Smart investors are asking whether this news alone makes the stock an immediate buy. A closer examination of the funding's purpose, its potential applications, and Rigetti's current valuation reveals a more nuanced picture. Image source: Getty Images. Why is the government investing in quantum computing stocks?
The Commerce Department's $100 million commitment to Rigetti is notable because it forms part of a broader effort to secure leadership in quantum AI technologies amid global competition. Unlike traditional grants, the underlying structure ties the funding to specific R&D milestones while giving the U.S. government an equity stake in Rigetti. ExpandNASDAQ: RGTIRigetti ComputingToday's Change(5.71%) $1.16Current Price$21.40Key Data PointsMarket Cap$7.1BDay's Range$19.53 - $21.4852wk Range$10.30 - $58.15Volume1.2MAvg Vol40.3MGross Margin-5945.49% For the company, the capital arrives at an important moment since scaling up quantum processors increasingly demands hefty investment in hardware, error mitigation, and integration with classic computing systems. The CHIPS Act funding should help reduce reliance on dilutive equity raises from public markets. Moreover, specifically choosing Rigetti among such a small cohort of recipients signals confidence from policymakers who view quantum computing as essential for economic competitiveness and security applications. How will CHIPS Act funding help Rigetti? Additional government funding could accelerate Rigetti's progress toward building fault-tolerant quantum architectures at scale. A successful outcome could enable hybrid quantum-classic solutions for crucial applications in drug discovery, financial services, energy modeling, and cryptography. Beyond research, partnering with the government could strengthen the company's position in public sector and enterprise contracts, fostering ecosystem development around its full-stack approach. With that said, quantum computing remains in a pre-commercial phase where meaningful revenue growth is still years away.
Is Rigetti Computing stock a buy? Rigetti's financial profile paints a high-risk, high-reward picture. Currently, the company has a market capitalization of roughly $7 billion with trailing-12-month sales of only $10 million. Under these parameters, the stock trades at a price-to-sales ratio (P/S) of nearly 700. Simply put, this multiple surpasses standard benchmarks even for high-growth technology companies in disruptive markets. RGTI PS Ratio data by YCharts. While financial support from the government adds a non-dilutive element to Rigetti's balance sheet, it does not alter the reality of the company's ongoing operating losses amid a modest sales base and a business model with heavy capital expenditures. All told, the $100 million commitment from the federal government provides important strategic support and capital for the company's road map. At best, this funding potentially accelerates breakthroughs in scalable quantum hardware. However, Rigetti's abnormally high valuation and early-stage fundamentals indicate that the funding alone does not justify buying the stock right now.Read NextJun 18, 2026 •By Catie HoganIs Rigetti Computing Stock a Buy Right Now?Jun 18, 2026 •By Anthony Di PizioPrediction: This Quantum Computing Stock Is Going to Plummet in the Second Half of 2026Jun 15, 2026 •By Rich SmithWhy Rigetti Computing Stock Keeps Going UpJun 12, 2026 •By Matt DiLallo3 Best Quantum Computing ETFs for 2026 and How to InvestJun 8, 2026 •By Anders Bylund9 Best Quantum Computing Stocks for 2026 and How to InvestJun 5, 2026 •By Rich SmithWhy Rigetti Computing Stock Just CrashedAbout the AuthorAdam Spatacco is a contributing Motley Fool technology analyst covering artificial intelligence, robotics, autonomous driving, e-commerce, and cybersecurity stocks. Previously, Adam was an investment banking analyst specializing in mergers and acquisitions, as well as debt and equity capital raises, for software companies. He later worked in corporate development at venture-backed technology start-ups. He holds a bachelor’s degree in business administration with a concentration in finance from the University of Richmond.TMFmoneyballX@moneyballinvestStocks MentionedRigetti ComputingNASDAQ: RGTI$21.36(+5.51%)+$1.12Motley Fool Stock Advisor’s Latest PickGet Access---% Avg Return*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.