Rigetti Computing (RGTI) Declining on Valuation Concerns, Street Remains a Buy Rating

Rigetti Computing, Inc. (NASDAQ:RGTI) has declined more than 21% over the past month, mainly due to share dilution concerns and extreme valuation multiples. However, the Street remains bullish on the  stock, with analysts’ 12-month price target suggesting more than 80% upside from the current level.  It is also one of the Best Quantum Computing Stocks to buy and Hold Forever.

​The bullish sentiment is based on Rigetti Computing, Inc. (NASDAQ:RGTI)’s impressive fiscal Q1 2026 revenue growth, representing around 193% year-over-year growth to $4.4 million. Management attributed growth to on-premises Novera QPU deliveries and new government research contracts. This has led to analysts projecting revenue to triple by the end of 2026, compared to last year.

​On the other hand, the decline in share price has been linked to valuation, which remains under intense scrutiny. Analysts highlight the company’s price-to-sales ratio compared with that of its peers. The company needs to justify its premium valuation by consistent commercial adoption and rapid growth.

Overall, Rigetti Computing, Inc. (NASDAQ:RGTI) was held by 29 hedge funds in Q1 2026 as per Insider Monkey’s database.

Rigetti Computing, Inc. (NASDAQ:RGTI) is a full-stack quantum computing company. It operates quantum computers over the cloud and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform.

While we acknowledge the risk and potential of RGTI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RGTI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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