• Rigetti Computing recently announced that it will partner with HPE and the Pittsburgh Supercomputing Center to build the NSF-funded TangleLab hybrid quantum-classical supercomputing testbed, centered on a 9-qubit Novera system at PSC’s new data center.
• This collaboration strengthens Rigetti’s role in hybrid high-performance computing and expands hands-on access to its technology for researchers, educators, and public sector users.
• Next, we’ll examine how this TangleLab partnership with HPE and PSC may influence Rigetti’s existing investment narrative and growth assumptions.

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Rigetti Computing Investment Narrative Recap

To own Rigetti, you have to believe hybrid quantum classical systems can move from funded experiments to recurring, higher value usage, while the company narrows heavy losses. The TangleLab partnership fits this path by putting a Novera system at the center of a high profile NSF backed testbed, but it does not change the near term risk that revenue remains uneven and tied to government programs or that high operating losses continue to pressure the balance sheet.

Among recent announcements, the letter of intent for up to US$100 million in potential CHIPS Act funding from the U.S. Department of Commerce stands out alongside TangleLab. Both point to Rigetti’s tight linkage with public sector quantum priorities, which can support its roadmap for larger, higher fidelity systems and hybrid HPC use cases. For investors watching catalysts, these government backed initiatives sit against the backdrop of ongoing losses and contract mix volatility.

Yet behind these opportunities, there is a very real risk investors should be aware of if government quantum funding were to...

Rigetti Computing's narrative projects $170.0 million revenue and $28.7 million earnings by 2029. This requires 157.0% yearly revenue growth and an earnings increase of about $254 million from -$225.7 million today.

Uncover how Rigetti Computing's forecasts yield a $29.65 fair value, a 85% upside to its current price.

Exploring Other Perspectives

Some analysts see a far more optimistic path than the baseline, assuming revenue could reach about US$285.6 million and earnings US$45.9 million by 2029, so if you only focus on today’s TangleLab news and ignore how dependent that upside still is on sustained government backed programs, you may miss how differently investors can view the same stock.

Explore 23 other fair value estimates on Rigetti Computing - why the stock might be worth less than half the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Rigetti Computing research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Rigetti Computing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rigetti Computing's overall financial health at a glance.

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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.