A Look At Rigetti Computing (RGTI) Valuation After TD Cowen Downgrade And Funding Concerns - simplywall.st

ShareCopy LinkRigetti Computing (RGTI) is back in focus after a TD Cowen downgrade, with the firm highlighting more than US$300 million in potential fabrication funding needs, rising competitive pressure, and the company’s absence from DARPA QBI Stage B participation. See our latest analysis for Rigetti Computing. The TD Cowen downgrade comes after a sharp reset in Rigetti’s momentum, with a 37.2% 1 month share price return decline and a 31.8% year to date share price return drop, even though the 3 year total shareholder return remains very large. If this quantum pullback has you looking more broadly at the theme, you may want to scan our list of 23 quantum computing stocks as a starting point for further research. With the shares down sharply over the past month and year to date, yet still described as trading at a premium versus peers, the real question is whether recent weakness creates an entry point or if the market is already pricing in future growth. AdvertisementMost Popular Narrative: 34.3% Undervalued According to one widely followed narrative, Rigetti Computing’s fair value sits at $24.50 per share versus the last close of $16.09, which creates a wide valuation gap to unpack. The trajectory of quantum computing, particularly in the context of Rigetti Computing and the Quantum Benchmark Testing System (QBTS), could witness significant shifts. Trump's emphasis on "America First" policies might lead to increased funding for public-private partnerships and The Defense Advanced Research Projects Agency (DARPA)'s R&D works in critical technologies, including quantum computing, as part of national security and technological supremacy initiatives. Although the company may not achieve profitability in the short or medium term, 2025 will be a much positive year in terms of strengthening commercial relationships and improving cash flow. Read the complete narrative. The narrative, written by LongTermer, leans heavily on aggressive revenue expansion, a meaningful margin shift, and a future earnings multiple that assumes material commercial traction. Curious which specific growth and profitability assumptions sit behind that $24.50 fair value and how they connect to Rigetti’s current quantum contracts and pipeline projections. Result: Fair Value of $24.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that story could easily crack if Rigetti’s heavy losses persist, or if competition pulls future contracts and QBTS related work away from the company. Find out about the key risks to this Rigetti Computing narrative.

Build Your Own Rigetti Computing Narrative If you see the story differently or simply want to work through the numbers yourself, you can build a fresh Rigetti view in just a few minutes: Do it your way. A great starting point for your Rigetti Computing research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. Looking for more investment ideas? If Rigetti has your attention, do not stop there, broaden your watchlist with other stock ideas so you are not relying on a single quantum bet. Target income first and check out 12 dividend fortresses that could suit investors who want yield alongside potential capital growth. Hunt for pricing gaps with 53 high quality undervalued stocks that highlight companies our models flag as trading below their fair value estimates. Prioritize financial resilience by scanning solid balance sheet and fundamentals stocks screener (45 results) focused on businesses with stronger balance sheets and cleaner fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.comAbout NasdaqCM:RGTIRigetti ComputingThrough its subsidiaries, builds quantum computers and the superconducting quantum processors the United States, the United Kingdom, rest of Europe, Asia, and internationally.See The Free Research ReportExcellent balance sheet with slight risk.See The Free Research ReportSimilar CompaniesNasdaqGS:INTCIntelNasdaqGS:GOOGLAlphabetMarket InsightsDotcom Bubble vs. Now 🫧Stella OngWhy alternative investments are making a splash 🖼️Richard BowmanWhy longer lifespans could reshape portfolios 🧓Stella OngAdvertisementWeekly PicksTalos on Tesla · 15 days agoThe "Physical AI" Monopoly – A New Industrial RevolutionFair Value:US$665.3637.3% undervalued35 followersusers have followed this narrative·14 commentsusers have commented on this narrative·18 likesusers have liked this narrativeMAMarek_Trnka on CSG · 17 days agoCzechoslovak Group - is it really so hot?Fair Value:€5548.6% undervalued38 followersusers have followed this narrative·1 commentusers have commented on this narrative·13 likesusers have liked this narrativealex30free on Swedencare · 8 days agoThe Compound Effect: From Acquisition to IntegrationFair Value:SEK 46.2846.8% undervalued10 followersusers have followed this narrative·0 commentsusers have commented on this narrative·1 likeusers have liked this narrativeRecently Updated NarrativesDODouble_Bubbler on Spectral AI · 1 day agoSpectral AI: First of Its Kind Automated Wound Healing PredictionFair Value:US$569.0% undervalued1 followerusers have followed this narrative·0 commentsusers have commented on this narrative·0 likesusers have liked this narrativeDODouble_Bubbler on EnSilica · 1 day agoWhy EnSilica is Worth Possibly 13x its Current PriceFair Value:UK£590.1% undervalued114 followersusers have followed this narrative·17 commentsusers have commented on this narrative·0 likesusers have liked this narrativeQUQuant_Trader on SoFi Technologies · 1 day agoSoFi Technologies will ride a 33% revenue growth wave in the next 5 yearsFair Value:US$39.9851.0% undervalued1 followerusers have followed this narrative·0 commentsusers have commented on this narrative·0 likesusers have liked this narrativePopular NarrativesDAdavidlsander on Ubisoft Entertainment · 11 days agoIs Ubisoft the Market’s Biggest Pricing Error?

Why Forensic Value Points to €33 Per ShareFair Value:€33.886.3% undervalued58 followersusers have followed this narrative·5 commentsusers have commented on this narrative·25 likesusers have liked this narrativeANAnalystConsensusTarget on NVIDIA · about 2 months agoNVDA: Expanding AI Demand Will Drive Major Data Center Investments Through 2026Fair Value:US$253.0227.7% undervalued1072 followersusers have followed this narrative·6 commentsusers have commented on this narrative·32 likesusers have liked this narrativeANAnalystConsensusTarget on Microsoft · 11 days agoAnalyst Commentary Highlights Microsoft AI Momentum and Upward Valuation Amid Growth and Competitive RisksFair Value:US$603.2233.5% undervalued1272 followersusers have followed this narrative·2 commentsusers have commented on this narrative·9 likesusers have liked this narrativeTrending DiscussionUSUser on Tesla · 5 days agoWhen was the last time that Tesla delivered on its promises? Lets go through the list! The last successful would be the Tesla Model 3 which was 2019 with first deliveries 2017. Roadster not shipped. Tesla Cybertruck global roll out failed. They might have a bunch of prototypes (that are being controlled remotely) And you think they'll be able to ship something as complicated as a robot? It's a pure speculation buy.4|1USUser on Tesla · 4 days agoThis article completely disregards (ignores, forgets) how far China is in this field. If Tesla continues on this path, they will be fighting for their lives trying to sell $40000 dollar robots that can do less than a $10000 dollar one from China will do. Fair value of Tesla? It has always been a hype stock with a valuation completely unbased in reality. Your guess is as good as mine, but especially after the carbon credit scheme got canned, it is downwards of $150.3|0USUser on Tesla · 4 days agoThere is a lot of Musk's puffery being echoed in this article. "ecosystem dominance", Tesla certainly do not dominate any of their new markets. If Tesla is the undisputed leader of the premium "Closed Garden.", it is only through EV's and that business has been declining year-on-year, despite the market increasing. Vehicle manufactures are finding that customers are rejecting the subscription model. "The Cybercab fleet (launching 2026) acts as the financial bridge.", that is a stretch. Even if Level 4/5 autonomy is achieved, "profitability" still has to be proved, where the competition is not necessarily Waymo, but Uber. Taking the driver out of a ride‑hailing service may not be the killer saving people think it will be. Likewise, outside of CGI and for quite some time, an Optimus humanoid robot may prove more expensive and not as useful, versatile, skilled and knowledgeable as a domestic worker. Telsa may be withdrawing from the EV market, but for its other ventures, they have arrived late to the party, do not lead and show no sign that they will dominate any of them.