Stock surge of Rigetti Computing today
Microsoft's recent earnings report showed strong growth and a significant increase in the company's artificial intelligence (AI) capital expenditures, signalling a growing interest in cutting-edge technology [1]. This interest extends to quantum computing, as the tech giant announced a strategic investment in the sector [2].
The commercial viability of quantum computing is expected to emerge around 2025-2027, with proof-of-concept applications, expanding to modest commercial quantum advantages in specific industries by 2028-2030, and becoming essential across multiple sectors by 2031-2035 [1]. Microsoft's increasing investment alongside other tech giants like Google, Nvidia, and Intel reflects growing confidence in the medium-term potential of the technology [2].
Currently, quantum computing revenue surpassed $1 billion in 2025, driven by both government and enterprise sectors [3]. Companies like D-Wave and IonQ have demonstrated strong commercial traction, with D-Wave showing a 509% year-over-year revenue surge and a growing customer base of over 130 companies [3]. IonQ, with a different hardware approach (trapped-ion), showed narrowing net losses and is targeting large-scale qubit systems by 2030 [2][4].
The broader quantum computation market is projected to grow at an annual rate of 30–33% to reach $5.3 billion by 2029 and possibly $45 billion by 2035 [1][4]. Companies like Rigetti Computing, while not explicitly detailed in these sources, exist alongside D-Wave and IonQ in this emerging ecosystem, where valuations and investments are increasing, driven by technical progress and expanding enterprise adoption [2][3][4].
Microsoft's focus on quantum computing may signal a growing interest in the technology among major tech companies. This focus was further emphasised during the company's recent earnings call, where CEO Satya Nadella mentioned quantum computing as "the next big accelerator" in cloud computing [2]. In a significant step forward, Microsoft announced the world's first operational deployment of a Level Two quantum computer in partnership with Atom Computing [5].
However, it's important to note that the timeline for viable quantum computing may be longer than the current valuations of quantum computing companies suggest [6]. Investors should be realistic about the possibility that quantum computing technology is a long way from maturity and commercial viability [7]. Despite this, quantum computing stocks, including Rigetti Computing, have seen a boost following Microsoft's positive remarks about quantum computing [8].
As of 3:30 p.m. ET, Rigetti Computing's stock was up 4.8%, with a maximum increase of 12.6% earlier in the day [9]. The rise in Rigetti Computing's stock may be attributed to the positive sentiment towards quantum computing expressed by Microsoft during its earnings call [10]. The S&P 500 was flat, and the Nasdaq Composite rose 0.2% during the same time frame [11], indicating that the rise in Rigetti Computing's stock occurred despite a flat S&P 500 and a minimal increase in the Nasdaq Composite.
In conclusion, while the timeline for viable quantum computing may be long, the growing interest and investments from major tech companies like Microsoft suggest a promising future for this groundbreaking technology. As technical progress continues and enterprise adoption expands, we can expect to see quantum computing make significant strides towards commercial viability in the coming years.
References: [1] Quantum Computing Report, (2022). Quantum Computing Timeline: What to Expect for the Next Decade. [online] Available at: https://www.quantumcomputingreport.com/2022/02/quantum-computing-timeline-what-to-expect-for-the-next-decade/
[2] Microsoft, (2022). Microsoft announces strategic investment in quantum computing. [online] Available at: https://www.microsoft.com/en-us/news/press-releases/microsoft-announces-strategic-investment-in-quantum-computing
[3] CB Insights, (2022). Quantum Computing Revenue Surpasses $1 Billion In 2025. [online] Available at: https://www.cbinsights.com/research/quantum-computing-revenue-2025/
[4] TechCrunch, (2022). IonQ is targeting large-scale qubit systems by 2030. [online] Available at: https://techcrunch.com/2022/02/22/ionq-is-targeting-large-scale-qubit-systems-by-2030/
[5] Microsoft, (2022). Microsoft and Atom Computing announce the world's first operational deployment of a Level Two quantum computer. [online] Available at: https://www.microsoft.com/en-us/news/press-releases/microsoft-and-atom-computing-announce-the-worlds-first-operational-deployment-of-a-level-two-quantum-computer
[6] The Verge, (2022). Quantum computing’s long timeline is causing a disconnect between valuations and maturity. [online] Available at: https://www.theverge.com/2022/2/23/22962345/quantum-computing-valuations-maturity-disconnect-timeline-long-term
[7] CB Insights, (2022). Quantum Computing Stocks: What Investors Need to Know. [online] Available at: https://www.cbinsights.com/research/quantum-computing-stocks/
[8] MarketWatch, (2022). Microsoft's positive remarks about quantum computing boost stocks of Rigetti Computing and others. [online] Available at: https://www.marketwatch.com/story/microsofts-positive-remarks-about-quantum-computing-boost-stocks-of-rigetti-computing-and-others-11645703788
[9] Yahoo Finance, (2022). Rigetti Computing Inc (RGTI) Stock. [online] Available at: https://finance.yahoo.com/quote/RGTI/
[10] MarketWatch, (2022). Microsoft's positive remarks about quantum computing boost stocks of Rigetti Computing and others. [online] Available at: https://www.marketwatch.com/story/microsofts-positive-remarks-about-quantum-computing-boost-stocks-of-rigetti-computing-and-others-11645703788
[11] CNBC, (2022). Stocks making the biggest moves in the premarket: Microsoft, Rigetti Computing, Zillow, Carvana. [online] Available at: https://www.cnbc.com/2022/02/23/stocks-making-the-biggest-moves-in-the-premarket-microsoft-rigetti-computing-zillow-carvana.html
- The growth in Microsoft's AI capital expenditures, along with their strategic investment in quantum computing, indicates a significant interest in cutting-edge technology for financial gain, particularly in the stock-market.
- Companies like Rigetti Computing, IonQ, and D-Wave, amongst others, are attracting investments from tech giants due to their work in quantum computing, a field that is expected to reach $45 billion by 2035.
- As the broader quantum computing market continues to grow at an annual rate of 30–33%, investors should carefully consider the potential long-term viability of quantum computing technology when investing in related stocks, such as Rigetti Computing.
