Rigetti Computing (RGTI) closed Friday at $26.42, marking a 19.9% gain on the day and a roughly 48% surge from the prior Friday's close of $17.85. The rally was fueled by news that the company has signed a non-binding letter of intent with the U.S. Commerce Department for a potential $100 million grant aimed at advancing superconducting quantum-computing research and development.
The Nasdaq is closed Monday for Memorial Day, so trading is set to resume Tuesday at 9:30 a.m. Eastern. Investors are keenly watching whether Friday's gains will hold and whether the broader quantum-computing sector will continue its upward momentum.
Details of the Proposed Grant
Rigetti's subsidiary, Rigetti & Co., LLC, signed a letter of intent with the Commerce Department for a three-year award. The deal is still non-binding and requires final terms to be settled. Under the proposed arrangement, the government would take an equity stake in Rigetti, with the exact number of shares issued depending on the final funding amount. According to the company's filing, the new shares would be priced at a 15% discount to the lowest closing price over a specified period, which could dilute existing shareholders.
The grant is part of a broader U.S. government initiative to boost quantum-computing capabilities. Reuters reported that the government is allocating $2 billion in equity across nine quantum-computing companies, with Rigetti, D-Wave Quantum, and Infleqtion each receiving approximately $100 million. IBM (IBM) is set to receive $1 billion for its new Anderon quantum-chip project. Commerce Secretary Howard Lutnick emphasized that these investments are critical for national security and technological leadership.
Market Context and Sector Impact
The quantum-computing sector has been volatile in recent months, but the government's clear policy signal has provided a strong catalyst. Infleqtion CEO Matthew Kinsella told Reuters that quantum computing "was coming much faster than anybody thinks," reflecting the bullish sentiment across the industry. The sector still faces significant technical challenges, including scaling qubits and reducing costs, but the injection of federal funding is seen as a major step forward.
Rigetti CEO Subodh Kulkarni said the new funds would help the company address scaling issues and "get us closer to utility-scale quantum computing." The company's 108-qubit Cepheus-1-108Q processor is already available on its own platform, as well as on Amazon Braket, Microsoft Azure Quantum, and qBraid.
Financials and Risks
Despite the excitement, Rigetti's financials remain early-stage. The company reported first-quarter revenue of $4.4 million and an operating loss of $26.0 million. It ended March with $569.0 million in cash, cash equivalents, and investments. The proposed grant would provide additional capital, but dilution remains a key concern for current shareholders.
The deal is not yet finalized, and the company's filing highlights several risks: uncertainty about whether a final agreement will be reached, the timing and amount of government funding, the ability to meet technical milestones, and broader business conditions. These are the hurdles that Rigetti must navigate as it seeks to turn policy momentum into sustainable growth.
Looking ahead, Tuesday's opening bell will be closely watched. Investors will be looking for any additional details from Rigetti about the government stake and whether the sector-wide rally extends to D-Wave, Infleqtion, and IBM. For now, Rigetti has a powerful policy catalyst, but the underlying hardware story must still prove itself to justify the current valuation.
