Rigetti Computing Stock (NASDAQ:RGTI) has been a key beneficiary of the recent buzz around quantum computing (QC). Recent breakthroughs, such as Alphabet’s Willow chip – which can complete calculations in just 5 minutes that would take classical computers an astonishing sextillion years – have fueled excitement across the sector.
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This surge in interest has led some to question whether QC could be the next technological leap to drive record-breaking valuations. If that proves true, the race to identify the companies at the forefront of this emerging industry will only intensify.
Among the frontrunners, RGTI stands out as a developer of QC systems, quantum processors, and the operator of Forest — a cloud-based platform for quantum algorithm development. Riding the momentum, the company’s stock has seen a meteoric rise recently.
With its share price skyrocketing by a whopping 1,225% over the past three months, some have begun likening RGTI to ‘the Nvidia of the quantum realm.’ One such voice is James Foord, an investor ranked in the top 4% of TipRanks’ stock pros.
“I see some similarities between Rigetti and NVIDIA, as the company not only produces hardware but also has Forest, which I would liken to CUDA, as it is an ecosystem that allows developers to build software for quantum computers,” Foord opined.
While Foord cautions that RGTI is not for the “faint of heart,” the investor sees much merit in gaining exposure to the growing QC industry. Suggesting that “quantum computing could be the next big thing after AI,” Foord notes that investments in this space are quickly picking up steam.
Rigetti’s existing partnership with Nvidia underscores its ambition to dominate as a key supplier of quantum computing chips. Although competitors like Google loom large, Foord believes “Rigetti looks like it may be ahead of its competitors.”
Despite the “speculative nature” of the industry, Foord rates RGTI shares as Buy. (To watch Foord’s track record, click here)
Wall Street seems to agree that RGTI is worth the risk. With 5 unanimous Buy recommendations and no Holds or Sells, RGTI boasts a Strong Buy consensus rating. However, even the most bullish analysts appear caught off guard by the stock’s sudden rise. With a 12-month average price target of $3.50, shares currently trade at levels that imply a potential downside of almost 69%. This disconnect may be the result of analysts struggling to revise targets quickly enough to keep up with Rigetti’s blistering pace. (See RGTI stock forecast)
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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.
