Rigetti Price Target Held at $15 as Amazon News, and New Collaboration Announced

Rigetti Computing's stock (NASDAQ: RGTI) is making some upside moves in this morning's pre-market, gaining 6.97%, and recapturing some of yesterday's losses (-13.47%). This shift comes on the heels of Amazon's recent announcement of a new quantum chip breakthrough touted to drastically cut the cost of error correction. Despite the decline in Rigetti's stock price through Thursday's session, Alliance Global Partners maintains a positive outlook on the company’s potential to benefit from the tech giant's advancements in quantum computing.

Although Amazon's revelation didn’t disclose fidelity rates and their chip contains only 9 qubits, the implications for Rigetti Computing are substantial, as it complicates a direct comparison with competitors like Google and Rigetti itself. Nevertheless, Brian Kinstlinger of Alliance Global Partners suggests that this could accelerate the production of quantum computers, viewing Rigetti as a “major benefactor from this announcement.” He highlights Rigetti's open architecture, which allows easy integration with top-notch technology.

Alliance Global Partners bolsters their faith in Rigetti with a maintained Buy rating and a $15 price target.

Also coming after the closing bell was news of a new collaboration as Rigetti entered into an agreement with Quanta Computer. Both companies involved are committing over $100 million each over the next five years, strategically combining their complementary strengths to drive innovation in this cutting-edge field. Additionally, Quanta, a Taiwan-based Global Fortune 500 company, has unveiled plans to invest an extra $35 million and acquire shares in Rigetti, pending regulatory approval.

Rigetti Computing, based in Berkeley, CA, operates in the Computer Hardware sector of the Technology industry. Established in 2013, Rigetti is at the forefront of building quantum computers and superconducting quantum processors. The company provides an innovative form of quantum processing units through its cloud services, which are accessible as quantum computing as a service. The business also supports the quantum cloud infrastructure for both public and private clouds, alongside offering professional services centered around quantum programming and software development.

As a player in the burgeoning field of quantum computing, Rigetti has a market capitalization of approximately $1.95 billion. The stock has had a 52-week range between $0.66 and $21.42, with the most recent trading day seeing highs and lows of $9.42 and $8.03, respectively.

Rigetti’s adjusted price target by Alliance Global Partners demonstrates a strong confidence in the company’s trajectory, unabated by the recent dip in stock price. Developments are clearly accelerating in the sector, and the consensus PT on the street of $14.60 reflects a healthy perceived upside for RGTI. Whether the current pace will be sufficient to impress markets in the medium term is yet to be seen, but for the time being, the street appears to be on-side if the latest comments are any indication.