Rigetti Computing (RGTI) faced a fresh downgrade on Sunday, as Wall Street Zen shifted its rating on the quantum computing stock to "sell" from "hold." The move sent shares down 1.5% to $16.61, trimming the company's market capitalization to approximately $5.4 billion. Despite the bearish call, MarketBeat data shows a broader "Moderate Buy" consensus among analysts, highlighting the divergence in sentiment surrounding the early-stage quantum player.
Proxy Filing and Annual Meeting
The downgrade arrives just two days after Rigetti mailed proxy materials for its upcoming annual meeting on June 9. Shareholders will vote on re-electing CEO Subodh Kulkarni as a Class I director and ratifying BDO USA as the company's auditor for fiscal 2026. As of the April 15 record date, Rigetti reported 332.3 million shares outstanding, according to the filing.
108-Qubit System Goes Live
Earlier this month, Rigetti announced that its Cepheus-1-108Q system, featuring 108 qubits, is now operational on both its own cloud platform and Amazon Braket, Amazon Web Services' quantum computing service. CEO Subodh Kulkarni called the launch "a milestone," emphasizing that the chiplet architecture is designed to enable "higher fidelity, higher qubit systems." Amazon Braket highlighted the system's use of controlled phase (CZ) gates to improve resilience against specific errors in superconducting processors, targeting applications in chemical simulation, optimization, and machine learning.
Rigetti reports median two-qubit gate fidelity of 99.1% and single-qubit fidelity of 99.9% for the new system, which has been running since April 7.
Financial Challenges Mount
Despite the technological progress, Rigetti's financial picture remains strained. The company posted $1.9 million in revenue for the fourth quarter, weighed down by an operating loss of $22.6 million. For the full year 2025, revenue reached just $7.1 million, while the GAAP net loss widened to $216.2 million. Cash, cash equivalents, and available-for-sale investments stood at $589.8 million at year-end, providing a cushion but not near-term profitability.
A key risk factor is Rigetti's heavy dependence on government contracts, which accounted for 90.2% of 2025 revenue, as disclosed in the annual report. Management has noted persistent operating losses since inception, warning that any disruption in government funding, weaker order flow, or delays in technical milestones could rapidly alter the stock's outlook.
Competitive Landscape
Rigetti operates in a crowded and speculative market alongside IonQ (IONQ), D-Wave Quantum (QBTS), and Quantum Computing Inc. (QUBT). Rick Bradt, portfolio manager at Neuberger Berman, has described quantum computing as the "holy grail of computing" but acknowledged "a lot of uncertainty" around its commercial timeline. This uncertainty is reflected in the stock's valuation, which carries a steep tech premium on minimal revenue.
Weekend investor chatter underscored the divide. Motley Fool analyst Leo Sun called Rigetti "too hot to handle," warning that shares could drop if Wall Street's growth targets are missed, despite the 108-qubit rollout.
