Rigetti stock price: Shares of Rigetti Computing (NASDAQ: RGTI) climbed 7%

Rigetti stock price today, shares of Rigetti Computing (NASDAQ: RGTI) climbed 7% as NVIDIA (NASDAQ: NASDAQ:NVDA) announced plans to host its first Quantum (NASDAQ:QMCO) Day at the GPU Technology Conference (GTC) 2025.

The recent explosive rise in Rigetti Computing's (RGTI) stock has prompted its CEO to urge caution among investors regarding the company’s path to sustainable sales growth and profitability.

Caution Amidst Hype

"Given the current hype surrounding quantum computing and some misleading statements circulating in the industry, it's essential to temper expectations," Rigetti Computing CEO Subodh Kulkarni stated during an interview on Yahoo Finance's Opening Bid podcast. Kulkarni's remarks follow his attendance at a recent conference hosted by investment bank Needham in New York City.

He emphasized that it's premature to discuss sales growth as the company is still heavily focused on technology development. "We need to perfect the technology before we can see a substantial impact on our sales," he explained, highlighting his engineering background.

Market Movements and Reactions

The quantum computing sector has seen a flurry of trading activity recently, fueled by excitement around artificial intelligence. On Tuesday, Rigetti’s shares soared by 48%, while competitors D-Wave Quantum (QBTS) and Quantum Computing (QUBT) also experienced significant gains of nearly 23% and 14%, respectively.

However, the previous day’s trading saw a dip in these stocks after Meta CEO Mark Zuckerberg expressed skepticism about the near-term viability of quantum computing on the Joe Rogan podcast, suggesting that practical applications are still "a decade-plus out." This sentiment echoed concerns voiced by Nvidia CEO Jensen Huang at the CES conference last week.

Rigetti's Performance and Challenges

Despite the stock's impressive performance—over 777% increase in the past year and a market capitalization exceeding $2 billion—Rigetti has yet to achieve profitability. The company reported a net loss of $45 million through the third quarter of last year. Additionally, a recent filing indicated that Rigetti may require additional funding by the second quarter of 2026 to support its ambitions in quantum chipmaking.

Addressing Funding Concerns

Kulkarni addressed concerns regarding the need for more capital, stating, "While we will always evaluate our options, we do not foresee the need to raise additional funds in the near future." Nevertheless, he acknowledged the lengthy journey ahead toward profitability.

"We are currently in an investment phase. Although we have some sales—primarily from government contracts—we anticipate that meaningful sales opportunities will emerge in the next three to five years. We expect to reach cash flow break-even around that timeframe, with profitability following thereafter."

Analyst Perspectives

Despite the uncertainty surrounding Rigetti's profit outlook, Wall Street remains bullish on the quantum computing sector. Analyst Craig Ellis from B. Riley noted that, while some CEOs have indicated a longer path to commercialization, recent advancements in technology offer encouraging signs for the industry's future.

"In aggregate, we believe that despite recent well-publicized CEO views on an elongated path to commercialization, a slew of recent and sometimes underappreciated data points provide broad encouragement for quantum's scalability into high-value workloads that traditional computing cannot reach," Ellis stated in a recent note.

Conclusion

As Rigetti Computing navigates its growth trajectory amid rising stock prices and industry hype, CEO Subodh Kulkarni's cautionary remarks serve as a reminder of the challenges that lie ahead. While the quantum computing sector is gaining momentum, the road to profitability for Rigetti remains long and complex. Investors are advised to stay informed and approach this volatile market with a balanced perspective.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.