We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Rigetti's Chiplet Strategy Secure Its Spot in DARPA's Next Phase?
Read MoreHide Full Article
Key Takeaways
Rigetti targets a 4X9-qubit chiplet system and 100+ qubits with high fidelities by year-end.
$35M from Quanta adds funding and manufacturing support for Rigetti's non-QPU hardware.
Key 2025 milestones include the chiplet demo, DARPA's Phase B decision, and Quantas progress.
Rigetti Computing (RGTI - Free Report) is taking an aggressive step to scale its quantum systems with a chiplet-based design — smaller, high-quality modules linked together to overcome the limits of single-chip architectures. The company is targeting the rollout of a 4×9-qubit chiplet system in the near term and aims to exceed 100 qubits with 99.5%–99.7% median two-qubit fidelities by year-end. These milestones align with DARPA’s performance criteria as it narrows participants in its Quantum Benchmarking Initiative, a multi-year program to develop utility-scale systems with over 10,000 qubits. Achieving them could secure Rigetti’s place in the next phase and open the door to larger government contracts.
To support this plan, Rigetti has strengthened its operational base. In February, a $35 million investment from Quanta Computer brings both funding and manufacturing expertise, with Quanta set to produce much of the non-QPU hardware, such as control systems and refrigeration, thus allowing Rigetti to focus on chiplet design and integration. Meanwhile, projects like the AFOSR-backed ABAA fabrication program and Innovate UK partnerships, including a planned 36-qubit upgrade at the NQCC, aim to enhance chip quality and scalability. Key milestones for investors to watch in the remainder of 2025 include the upcoming 4×9 chiplet demonstration, DARPA’s Phase B decision, and progress in Quanta’s production.
Peers Updates
International Business Machines (IBM - Free Report) has continued to advance its superconducting quantum roadmap, showcasing the 1,121-qubit Condor processor and outlining a path toward modular quantum systems. Alongside hardware gains, IBM is building out a robust quantum cloud platform and software ecosystem to drive developer adoption. The company’s near-term focus remains on improving gate fidelities, expanding system access, and preparing the architecture for integration into larger, modular configurations over the next several years.
IonQ (IONQ - Free Report) is pursuing growth through its trapped-ion technology, which offers high coherence times and precise operations. The company’s 2025-end target centers on achieving AQ 64 (algorithmic qubits), a performance metric designed to better reflect real-world utility than raw qubit counts. IonQ is investing in scaling its hardware manufacturing capacity while expanding partnerships in cloud and enterprise markets. The longer-term strategy focuses on increasing algorithmic performance year over year to bridge toward commercially relevant quantum advantage.
Rigetti’s Price Performance, Valuation and Estimates
Shares of RGTI have gained 4.7% in the year-to-date period compared with the industry’s growth of 21.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 22.41, above the industry average. RGTI carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Rigetti’s 2025 earnings implies a significant 86.1% rise from the year-ago period.
Image: Bigstock
Can Rigetti's Chiplet Strategy Secure Its Spot in DARPA's Next Phase?
Key Takeaways
Rigetti Computing (RGTI - Free Report) is taking an aggressive step to scale its quantum systems with a chiplet-based design — smaller, high-quality modules linked together to overcome the limits of single-chip architectures. The company is targeting the rollout of a 4×9-qubit chiplet system in the near term and aims to exceed 100 qubits with 99.5%–99.7% median two-qubit fidelities by year-end. These milestones align with DARPA’s performance criteria as it narrows participants in its Quantum Benchmarking Initiative, a multi-year program to develop utility-scale systems with over 10,000 qubits. Achieving them could secure Rigetti’s place in the next phase and open the door to larger government contracts.
To support this plan, Rigetti has strengthened its operational base. In February, a $35 million investment from Quanta Computer brings both funding and manufacturing expertise, with Quanta set to produce much of the non-QPU hardware, such as control systems and refrigeration, thus allowing Rigetti to focus on chiplet design and integration. Meanwhile, projects like the AFOSR-backed ABAA fabrication program and Innovate UK partnerships, including a planned 36-qubit upgrade at the NQCC, aim to enhance chip quality and scalability. Key milestones for investors to watch in the remainder of 2025 include the upcoming 4×9 chiplet demonstration, DARPA’s Phase B decision, and progress in Quanta’s production.
Peers Updates
International Business Machines (IBM - Free Report) has continued to advance its superconducting quantum roadmap, showcasing the 1,121-qubit Condor processor and outlining a path toward modular quantum systems. Alongside hardware gains, IBM is building out a robust quantum cloud platform and software ecosystem to drive developer adoption. The company’s near-term focus remains on improving gate fidelities, expanding system access, and preparing the architecture for integration into larger, modular configurations over the next several years.
IonQ (IONQ - Free Report) is pursuing growth through its trapped-ion technology, which offers high coherence times and precise operations. The company’s 2025-end target centers on achieving AQ 64 (algorithmic qubits), a performance metric designed to better reflect real-world utility than raw qubit counts. IonQ is investing in scaling its hardware manufacturing capacity while expanding partnerships in cloud and enterprise markets. The longer-term strategy focuses on increasing algorithmic performance year over year to bridge toward commercially relevant quantum advantage.
Rigetti’s Price Performance, Valuation and Estimates
Shares of RGTI have gained 4.7% in the year-to-date period compared with the industry’s growth of 21.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 22.41, above the industry average. RGTI carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Rigetti’s 2025 earnings implies a significant 86.1% rise from the year-ago period.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.