Rigetti Computing (RGTI) shares continued their upward momentum in premarket trading on Friday, following a nearly 10% surge in Thursday's regular session. The stock was quoted at $27.34 before the bell, building on a rally that has seen the quantum computing company's market value climb roughly 60% since May 20, when shares closed at $16.88. Trading volume has spiked dramatically, with 85.2 million shares changing hands on Thursday alone.
The latest catalyst came from outside Rigetti. IBM (IBM) announced on Thursday a plan to invest more than $10 billion over five years in quantum computing, targeting a large-scale, fault-tolerant machine by 2029. The term 'fault-tolerant' refers to systems designed to keep error rates low enough for reliable calculations, a key milestone for practical quantum applications. Reuters also reported that the U.S. government last week moved to take $2 billion in equity stakes in nine quantum companies, with IBM set to receive half of that for a new venture called Anderon.
Rigetti has its own direct link to federal support. The Berkeley, California-based company said on May 21 it signed a letter of intent with the U.S. Department of Commerce for up to $100 million over three years to accelerate research into superconducting quantum computers. The Department is expected to receive an equity stake in return. CEO Subodh Kulkarni said the funding could help Rigetti address 'key scaling bottlenecks' and move toward 'utility-scale quantum computing.'
The rally is not isolated to Rigetti. Google Finance data showed D-Wave Quantum (QBTS) and IonQ (IONQ), two listed quantum peers, both up more than 7% in early trading indications. Rigetti's own market value was shown near $9 billion.
A looming public debut is adding another marker for valuations in the sector. Honeywell-backed Quantinuum is targeting a valuation of up to $12.7 billion in a U.S. IPO, with plans to sell about 21.05 million shares at $45 to $50 each and list under the symbol QNT, Reuters reported this week.
Despite the excitement, Rigetti remains an early-revenue company. It reported first-quarter revenue of $4.4 million and an operating loss of $26.0 million, while ending March with $569 million in cash, cash equivalents and investments and no debt. The company also highlighted the availability of its 108-qubit system as a product milestone.
However, the rally rests on a lot that has not yet happened. Alphabet (GOOGL) CEO Sundar Pichai has said practically useful quantum computers may be 'five to 10 years away,' and Rigetti's federal award still depends on definitive agreements. The company has warned that stock issued to the government could dilute existing holders.
Friday's regular session will be a key test. If buyers show up after the Nasdaq open, the policy-driven momentum trade could continue. A fade would put the focus back on losses, dilution risk and how quickly Rigetti can turn technical milestones into paying commercial demand.
