Rigetti Computing (RGTI) entered the new trading week on a cautious note after shares dropped 5.5% on Friday to close at $25.54. The decline erased a portion of the sharp gains from Thursday’s rally, which was fueled by news of a potential $100 million investment from the U.S. Commerce Department. For the holiday-shortened week, the stock ended roughly 3.3% lower, reflecting choppy trading as investors weighed the implications of government support against dilution risks.
The Commerce Department has signed letters of intent with nine companies under the CHIPS and Science Act, allocating $2.013 billion in incentives. Rigetti is among the quantum computing firms selected for funding, with a letter of intent for up to $100 million over three years. The funds are intended to accelerate research and development in superconducting quantum computing, a technology that relies on ultra-cold circuits to generate qubits—the fundamental units of quantum information. CEO Subodh Kulkarni noted that the investment would help the company address "key scaling bottlenecks more rapidly" and move toward utility-scale quantum computing.
However, the deal is far from final. In a May 21 SEC filing, Rigetti disclosed that it and the Commerce Department still need to finalize transaction agreements. The government is set to receive Rigetti shares tied to the award size, priced at the lowest closing price from one of three specified dates, minus a 15% discount. This could lead to dilution for current shareholders, as the company may issue new shares to fulfill the agreement. The filing also warned that final terms, timing, technical hurdles, and customer deliveries may not match current expectations.
Adding to the cautious sentiment, new Form 144 filings at the end of the week revealed planned insider sales. A May 29 filing showed officer David Rivas planning to sell 499,328 shares, while a May 28 filing indicated CEO Subodh Kulkarni intended to sell 43,190 shares. These filings represent planned sales of restricted or control stock, though they do not confirm that all shares were actually sold. The additional supply could weigh on the stock as trading resumes.
Rigetti remains an early-stage company from a financial perspective. First-quarter revenue came in at $4.4 million, with an operating loss of $26.0 million. Cash, cash equivalents, and available-for-sale investments totaled $569.0 million as of March 31. Despite the losses, Kulkarni emphasized "disciplined execution against our roadmap," focusing on improving fidelity and building larger quantum systems.
Competition in the quantum computing space is intensifying. IBM is set to receive $1 billion for a quantum foundry, while D-Wave expects $100 million for its work on superconducting systems. Rigetti, though part of the federal initiative, operates at a smaller scale than these industry giants. Market expectations remain high, with StockAnalysis reporting a market capitalization near $8.49 billion as of Friday’s close, against trailing revenue of just $10.02 million and 332.4 million shares outstanding.
Looking ahead, the stock’s direction will likely hinge on concrete developments—such as final award details, insider trading activity, and whether buyers remain committed to a company with revenue still in the millions. The next official milestone is Rigetti’s online shareholders meeting, scheduled for June 9, which may provide further clarity on the funding and strategic outlook.
