Investor Watch: Rigetti Contract with Air Force Laboratory
- Jack Borys
- 19 hours ago
- 2 min read
Image: https://www.tipranks.com/news/rigetting-computing-stock-rgti-surges-on-new-deal-with-u-s-air-force
Rigetti Computing (RGTI), a quantum computing company that designs, manufactures, and deploys superconducting quantum computing systems, announced on Thursday that it was awarded a nearly $6 million contract from the Air Force Laboratory with hopes of finding advancements in quantum networking technology. Upon the news, RGTI shares spiked around 14% and then carried the positive momentum into Friday with more gains between 12 and 15%, as reported on Barron's.
With this contract, Rigetti Computing will collaborate with QphoX, a Dutch start-up company, to find ways to transmit information between quantum computers. Rigetti CEO Subodh Kulkarni called it a “far-out kind of research program ” during an interview with Barron’s.
This is not the first time in 2025 that Rigetti Computing has experienced major pricing swings because of “far-out research”. Back in January at the Consumer Electronics Show (CES), Jensen Huang, President and CEO of Nvidia, claimed that quantum computing as a sector was still very far from being an effective form of technology. This resulted in major selloffs of Rigetti and other quantum computing stocks. Since then, Huang and other previously skeptical analysts remain skeptical but have adopted a more optimistic outlook on the sector, acknowledging the potential in the technology.
This contract between the Air Force Laboratory and Rigetti reassures investors that quantum computing is not an industry to dismiss. For the future of Rigetti and quantum computing, analysts will continue to oversee research results and the completion of projects. They will keep an eye on projects like the collaboration with QphoX on the advancement of superconducting quantum networking and the enhancement of anti-money laundering detection with HSBC.
The transformative potential that this sector has on many industries is inevitable, despite it still being in the early stages of development. Quantum computing is a long-term investment for many companies due to its ability to handle complex problems, revolutionizing fields in artificial intelligence, material development, and scientific research. Investors should keep an eye on Rigetti and company in the future as a possible form of portfolio diversification.
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