Rigetti Computing (RGTI) - Investment Thesis

Rigetti Computing  founded in 2013 and publicly listed in 2022, specializes in developing quantum processing units (QPUs) based on superconducting qubit technology. Their QPUs utilize Josephson Junctions (JJs), which consist of two thin layers of superconducting aluminum separated by an insulating barrier of aluminum oxide. This structure allows electrons to tunnel through the insulator, resulting in a specific qubit frequency that facilitates control and measurement. Despite challenges in reproducibility and energy loss, the simplicity, scalability, and manufacturability of superconducting qubits make them a leading choice for quantum computing.

To enhance qubit performance, Rigetti employs Alternating-Bias Assisted Annealing (ABAA), a fabrication technique that improves qubit frequency precision and the execution of two-qubit gates. This method is integral to the production of their QPUs, including the Novera™ QPU and the forthcoming Ankaa™-3 system.

In December 2023, Rigetti launched the Novera QPU, marking its first commercially available quantum processor. The Novera QPU includes a 9-qubit chip featuring tunable couplers for rapid two-qubit operations and a 5-qubit chip designed for testing single-qubit gates. This advancement aims to provide researchers and developers with accessible quantum technology to further their work.

Looking ahead, Rigetti is developing the Ankaa-3 system, an 82-qubit processor based on scalable multi-chip technology. This system boasts enhanced readout capabilities that contribute to improved overall performance, positioning it as a significant step forward in Rigetti's quantum computing offerings.

Despite these technological advancements, Rigetti has faced financial challenges. In early January 2025, the company's stock experienced a significant decline following comments from Nvidia's CEO, Jensen Huang, who suggested that practical quantum computing applications might still be decades away. This outlook led to a substantial drop in Rigetti's stock price, reflecting investor concerns about the near-term viability of quantum computing technologies.

In summary, Rigetti Computing continues to innovate in the field of superconducting quantum processors, contributing to the advancement of quantum computing technology. However, the company faces ongoing challenges in achieving commercial viability and meeting market expectations.