Rigetti Locks in $100 Million US Funding Deal, and Washington Gets an Equity Stake

Rigetti Computing Inc. (NASDAQ:RGTI) stock rose nearly 6% in Tuesday’s premarket trading after the quantum computing company secured a major U.S. government funding agreement.

Nasdaq futures fell 0.03%, while S&P 500 futures declined 0.31%.

U.S. Government Backs Rigetti With $100 Million

Rigetti said Tuesday that its subsidiary signed a definitive agreement with the U.S. Department of Commerce for $100 million in funding. The award will support research and development in superconducting quantum computing.

The funding comes through the CHIPS Research and Development Office under the CHIPS Act.

Rigetti plans to focus on three projects. These include smaller readout electronics, expanded cryogenic capacity and fabrication technology for highly connected quantum chips.

The Commerce Department will also receive a minority, non-controlling equity stake in Rigetti.

"We are proud to be selected by the U.S. government to accelerate R&D and progress against our roadmap to deliver commercially viable quantum computing capabilities," CEO Subodh Kulkarni said in the announcement.

Technical Picture Remains Challenging

Despite Tuesday’s rally, Rigetti remains below several key moving averages. At $16.03, the stock was 4.6% below its 20-day SMA and 2.4% below its 50-day SMA.

Shares were also 12.4% below the 100-day SMA and 16.9% below the 200-day SMA. Meanwhile, MACD remains below its signal line, pointing to weak momentum.

Traders may watch $16.50 as near-term resistance and $15.50 as support.

Rigetti Analysts Remain Bullish

Rigetti carries a Buy consensus rating. Six analysts have an average price forecast of $32.60. Recent analyst moves include:

• Rosenblatt: Buy (Maintains forecast to $40.00) (June 11)
• Rosenblatt: Buy (Maintains forecast to $40.00) (Aug. 7)
• Wedbush: Outperform (Maintains forecast to $40.00) (Aug. 3)

Top ETF Exposure

• Corgi Quantum Computing 2x Daily ETF (NASDAQ:XQTM): 7.52% Weight
• WisdomTree Quantum Computing Fund ETF (NASDAQ:WQTM): 5.33% Weight
• Corgi Quantum Computing ETF (NASDAQ:CQTM): 7.52% Weight

Significance: Because RGTI carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Rigetti Price Action

RGTI Price Action: Rigetti shares rose 5.66% to $16.06 in Tuesday’s premarket trading, according to Benzinga Pro data.

Photo via Shutterstock