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‘The Boom Isn’t Over,’ Says Top Investor About Rigetti Computing Stock
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‘The Boom Isn’t Over,’ Says Top Investor About Rigetti Computing Stock

Rigetti Computing (NASDAQ:RGTI) rises and falls with the broader quantum computing industry. Over the past few months, bullish excitement over the immense potential of this developing technology has clearly had the upper hand.

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How else to explain the mega boom for quantum firms such as the currently unprofitable RGTI, which surged by ~970% over the past three months on its way to a $3.7 billion market cap?

While acknowledging the company’s paltry finances at the moment, one top investor, known by the pseudonym KM Capital, believes more growth is on the horizon.

“RGTI’s first-mover advantage and industry potential make it a compelling investment opportunity,” says the 5-star investor who sits in the top 3% of TipRanks’ stock pros.

KM is clearly bullish on the lucrative potential of the quantum computing field, citing one report that estimates the industry will grow from $1.51 billion to $11.94 billion between 2025 and 2033 (an annual growth rate of 29.5%). The investor adds that RGTI’s internal forecasts anticipate the industry will reach a valuation of $15 billion by 2030, which is even more optimistic.

As for RGTI itself, KM points to its decade-plus experience in the field, which has led to key technological breakthroughs, including the development of the 84-qubit Ankaa-3 quantum computer. Looking ahead, KM is encouraged by the company’s 2025 plans to scale quantum systems toward achieving 99.5% two-qubit fidelity.

Another reason for KM’s optimism is decidedly political. The investor points out that Trump had previously supported quantum projects during his first term. Moreover, the recent Stargate announcement “suggests that supporting the development of cutting-edge technologies will be one of the main political priorities of Trump’s administration.”

Of course, the investor acknowledges the inherent risks – both for Rigetti and the industry at large. But as KM puts it, opportunities with outsized return potential often come with elevated levels of risk.

“The decision to put money into Microsoft in the 1980s and Nvidia in the 1990s or Tesla in 2010 also carried high investment risks,” reminds KM.

Despite Rigetti’s meteoric rise, KM remains confident in its upside potential, rating the stock a Buy. (To watch KM Capital’s track record, click here)

Wall Street, for the time being, seems pretty bullish about the quantum computing revolution, and RGTI’s position in it as well. With 6 Buy ratings, RGTI has a solidly Strong Buy rating. However, none of these optimistic analysts expected such massive gains to occur so fast, and RGTI’s 12-month average price target of $6.10 would actually yield losses of 30%. It is worth watching this space in the weeks ahead to see if the analysts revise their price targets and/or their ratings. (See RGTI stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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