Rigetti Stock Jumps 46.4% in May as $100 Million Federal Grant Lifts Quantum Rally
Updated
Updated · The Motley Fool · Jun 4
Rigetti Stock Jumps 46.4% in May as $100 Million Federal Grant Lifts Quantum Rally
3 articles · Updated · The Motley Fool · Jun 4
Summary
Rigetti shares climbed 46.4% in May, with the biggest move coming after the U.S. Commerce Department said the company could receive up to $100 million over three years under the CHIPS and Science Act.
That funding landed just after Rigetti posted Q1 revenue of $4.4 million, nearly triple a year earlier and ahead of analyst expectations, helped by Novera quantum processing unit deliveries and government contracts.
The company still burned cash — free cash flow was negative $20.6 million — but ended the quarter with $418.3 million in cash, giving it more runway as it scales.
Rigetti also cleared a technical hurdle by launching its delayed 108-qubit Cepheus system at roughly 99.1% two-qubit gate fidelity, while targeting 99.5% fidelity and more than 150 qubits by year-end.
The rally was amplified by broader enthusiasm for quantum computing, including IBM's plan to invest more than $10 billion in the field over the next five years and an 8%-plus May gain for the Nasdaq.