Rigetti Computing Is Trading Under $15: Is Now the Time to Buy?
2026-07-24 11:34
•Dave Kovaleski •The Motley Fool
•• •••••••• Axe Capital view
Quantum Computing's Hype vs. Reality: Should South Africans Buy Rigetti?
Rigetti’s drop to under $15 highlights the risks of betting on early-stage tech, especially for local investors without direct exposure.
Quantum computing promises to revolutionize many industries, but Rigetti's stock fall to $14.85 despite a sizable government contract reminds us this is far from a sure thing. The company generates minimal revenue and operates at a loss, making it a pure speculation play. South African investors looking for exposure to cutting-edge tech might be better served by keeping an eye on Naspers or Prosus, which have broader tech portfolios and more established cash flows. Meanwhile, the rand remains vulnerable to global risk-off sentiment, and given the USD/ZAR’s current volatility, adding a speculative US tech name with no direct JSE listing compounds currency risks. If Rigetti fails to scale or faces stronger competition from giants like IBM or Microsoft, the downside could be steep. this is just my opinion and not financial advice
Avoid Rigetti for now, especially given its volatility and cash burn. Instead, consider selective exposure to Naspers or Prosus as a safer way to tap into global tech innovation while staying within the JSE ecosystem.
- RGTI
- Naspers
- USD/ZAR
- Rapid technological shifts undermining Rigetti’s value
- Rand depreciation increasing losses for US-listed equity exposures
6/10
Rigetti Computing, a leading pure-play quantum computing stock, is trading at $14.85, down 33% year-to-date despite a $100 million government contract announcement in May. While the quantum computing industry is projected to grow significantly by 2035, Rigetti currently generates minimal revenue ($4.4M in Q1) and operates at a loss. The stock remains highly volatile and speculative, with analysts targeting $30.50 per share, but investors should approach it as a small, high-risk portfolio position.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Dave Kovaleski
Categories: Equities, Earnings
Tickers: RGTI, RGTIW, IBM, GOOG, GOOGL, GOOGM, GOOGN, MSFT
Sentiment: Neutral - While Rigetti has strong fundamentals (full-stack vertical integration, $569M cash, no debt) and significant growth potential in quantum computing, it currently has minimal revenue, operates at a loss, and exhibits extreme volatility. The stock is down 33% YTD despite positive developments, making it a high-risk speculative play suitable only for risk-tolerant investors with small positions. IBM is mentioned as a major tech behemoth investing heavily in quantum computing alongside Alphabet and Microsoft. However, the article notes this as a competitive risk for pure-play companies like Rigetti, as large established players may dominate the emerging market.
Keywords: quantum computing, emerging technology, speculative investment, government funding, stock volatility, pure-play quantum computing
Insights:
- RGTI: Neutral: While Rigetti has strong fundamentals (full-stack vertical integration, $569M cash, no debt) and significant growth potential in quantum computing, it currently has minimal revenue, operates at a loss, and exhibits extreme volatility. The stock is down 33% YTD despite positive developments, making it a high-risk speculative play suitable only for risk-tolerant investors with small positions.
- RGTIW: Neutral: While Rigetti has strong fundamentals (full-stack vertical integration, $569M cash, no debt) and significant growth potential in quantum computing, it currently has minimal revenue, operates at a loss, and exhibits extreme volatility. The stock is down 33% YTD despite positive developments, making it a high-risk speculative play suitable only for risk-tolerant investors with small positions.
- IBM: Neutral: IBM is mentioned as a major tech behemoth investing heavily in quantum computing alongside Alphabet and Microsoft. However, the article notes this as a competitive risk for pure-play companies like Rigetti, as large established players may dominate the emerging market.