Rigetti Computing (RGTI): India Collaboration Sparks Quantum Debate - Buy or Hold?
**Rigetti Computing (RGTI)** recently announced a Memorandum of Understanding (**MOU**) with **India's Centre for Development of Advanced Computing (C-DAC)** to co-develop hybrid quantum computing systems. This news has driven the stock up 7.1%, prompting investors to consider whether to buy, hold, or sell.
Rigetti and C-DAC: A Quantum Collaboration
The collaboration between **Rigetti** and **C-DAC** aims to support government and academic research and development (**R&D**) efforts. This partnership leverages the increasing momentum in the quantum computing sector, highlighted by significant investments like **Nvidia's** US$600 million commitment to quantum-related companies. This partnership is expected to boost research and development initiatives.
Investment Narrative: Opportunity and Risk
The investment thesis for **Rigetti Computing** hinges on the successful commercialization of quantum hardware and hybrid systems. The **MOU** with **C-DAC** aligns Rigetti with government-backed quantum R&D, a potentially significant catalyst given the company's historical reliance on contract wins and grants. The importance of this cannot be overstated.
However, it's crucial to consider that this announcement follows declining sales and ongoing losses. While increased market attention has led to higher options activity for **RGTI**, the immediate impact on revenue and profitability may be limited due to the longer timelines typically associated with government alliances. Shareholder dilution and operational volatility remain key risks.
Valuation and Community Perspectives
Valuation reports suggest that **Rigetti Computing** might be currently priced higher than its financials justify. Diverse fair value estimates from the **Simply Wall St Community** range from US$0.22 to US$24.50, reflecting varied opinions on the company's potential.
Increased options trading underscores how shifts in sentiment can influence the share price, even before fundamental changes occur. Investors should consider these diverse viewpoints when assessing Rigetti’s evolving risk profile. Ongoing losses present a significant risk factor to keep in mind.