RGTI shares may decline post-earnings as error-prone systems delay commercial sales despite $100 million U.S. funding.
Rigetti Computing (NASDAQ: RGTI) is expected to report a challenging second quarter on August 6, with its stock poised for further declines. The company received $100 million in U.S. government funding to advance quantum computing but struggles with error rates that hinder real-world applications and sales growth.
Despite producing the industry’s largest multichip quantum system, Rigetti’s 108-qubit Cepheus-1-108Q faces commercialization hurdles. The stock surged 65% after the $2 billion federal investment announcement in May but has since erased all gains, reflecting investor skepticism over near-term revenue potential.
Quantum computing remains years from widespread adoption, and government support may not accelerate progress. Analysts anticipate weak Q2 results could pressure shares further.