I will break down Rigetti Computing and explain why this quantum computing stock has investors excited, cautious, and divided at the same time. Rigetti has delivered real technical progress, explosive stock gains, and eye-catching analyst targets, but delays, losses, and dilution create serious risk

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The video analyzes Rigetti Computing (RGTI), a quantum computing company. It highlights a delay in the general availability of their 108-qubit system, Cepheus-1-108Q, to late Q1 2026, due to additional testing and optimization. Despite this, the company achieved 99% median two-qubit gate fidelity on the 108-qubit system. Financially, Rigetti reported a Q3 2025 revenue of $1.9 million, down 21% year-over-year, and an operating loss of $20.5 million. A reported net loss of $201 million was largely attributed to a non-cash derivative warrant liability adjustment. Recent positives include $5.7 million in purchase orders for two 9-qubit Novera systems, expected for delivery in H1 2026, and a $5.8 million, 3-year Air Force Research Laboratory contract for superconducting quantum networking. Risks include continued net losses for five consecutive years, potential dilution from outstanding warrants (16 million potential shares across multiple strike prices), and reliance on development contracts for revenue. Rigetti's long-term strategy depends on sales of QPUs and cloud-based quantum computing as a service, requiring scalable product revenue beyond current development contracts. The stock currently trades around $25.42, with a 60-month beta of 1.70, indicating high volatility. It has seen significant gains over the past two years (2400%). Analyst consensus is a 'Moderate Buy' with a high target price of $51, suggesting potential for the stock to double. However, achieving this requires significant progress in technology readiness and a shift in its revenue model from research-focused to scalable commercial operations.

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