Rigetti Computing (RGTI) Stock Surges 12% Following HPE Quantum Computing Alliance

Key Highlights

Table of Contents

RGTI shares soared approximately 11.9% following the TangleLab announcement, a groundbreaking hybrid quantum-classical computing testbed
The initiative represents a trilateral partnership involving Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center
The National Science Foundation is providing $5 million in funding to support this project
Rigetti plans to deploy its 9-qubit Novera QPU at PSC, with anticipated full deployment by 2027
Second quarter 2026 financial results are scheduled for August 6, with analysts forecasting approximately $5.09 million in revenue

Shares of Rigetti Computing experienced a significant rally on Monday, climbing as high as 11.9% during morning trading hours following the company’s announcement of a strategic partnership with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center.

Rigetti Computing, Inc., RGTI

Dubbed TangleLab, this innovative initiative represents a hybrid quantum-classical supercomputing testbed supported by $5 million in National Science Foundation funding. RGTI stock reached an intraday peak of $15.97 before experiencing modest profit-taking.

According to the agreement terms, Rigetti will provide its 9-qubit Novera quantum processing unit to PSC. The quantum processor will be seamlessly integrated with traditional high-performance computing infrastructure. Development is scheduled to commence on September 1, 2026, with complete operational status anticipated in 2027.

This latest development strengthens the existing collaboration between Rigetti and HPE, which broadened its quantum-HPC alliance portfolio during its Discover 2026 conference held in June.

During the first quarter of 2026, Rigetti generated $4.4 million in revenue while allocating $19.9 million toward research and development. The company maintains a cash position and short-term investment portfolio totaling $569 million.

Upcoming Financial Report

Rigetti is scheduled to release its second quarter 2026 financial results on August 6. Analyst estimates point to revenue of approximately $5.09 million, representing a substantial increase from the $1.80 million reported in the corresponding period last year.

The analyst community maintains a Buy rating on the stock, with a consensus price target of $31.60 — significantly higher than current trading levels.

Despite these optimistic projections, Rigetti’s journey toward achieving profitability remains a long-term proposition. Current revenue levels pale in comparison to the company’s research and development expenditure rate, and the possibility of shareholder dilution persists as the business continues to depend on government contracts and performance-based milestone payments for operational funding.

Government Backing Gains Momentum

This past May, Rigetti entered into a letter of intent with the U.S. Department of Commerce that could potentially secure up to $100 million in federal funding distributed over a three-year period. The agreement also includes provisions for the government to acquire an equity position in the company.

Additionally, Rigetti maintains an $8.4 million contract with India’s Centre for Development of Advanced Computing, with delivery anticipated during the latter half of 2026.

In terms of longer-term objectives, the company has outlined plans to deploy a U.K.-based quantum system featuring over 1,000 qubits within a three to four-year timeframe, which could represent a significant milestone catalyst if executed according to schedule.

For historical perspective, RGTI shares were trading near $56 this past October. Current pricing around the $14–$15 range remains substantially below those previous highs, despite Monday’s positive movement.

Favorable broader market conditions also contributed to Monday’s gains. The S&P 500 advanced 0.7%, the Dow Jones Industrial Average climbed 1.1%, and the Nasdaq Composite rose 0.7%, creating a generally positive environment for quantum computing equities.

Rigetti’s cloud-based quantum computing service is currently accessible through Microsoft Azure, although it remains in preliminary stages and has yet to generate substantial recurring revenue streams.

✨ Limited Time Offer