Artificial intelligence (AI) and quantum computing are currently causing a great deal of euphoria on the stock markets. Chad Rigetti is driving the symbiosis of these two megatrends. In 2013, the Yale graduate founded a quantum computing company. In the fall of 2021, the physicist floated "Rigetti Computing" on the New York Stock Exchange under the guise of a Special Purpose Acquisition Company (SPAC). Just over a year later, the pioneer and CEO stepped down. In the meantime, Rigetti has launched another company: Sygaldry Technologies is working on quantum-accelerated AI servers. While this start-up is being set up and is currently looking for a CFO, Rigetti Computing is making a big splash on Wall Street. Within four weeks, its capitalization has increased by almost 180% to around USD 13 billion. The rally can hardly be explained by the latest business figures. In the first half of 2025, Rigetti posted an operating loss of USD 41.5 million on sales of just USD 3.3 million.
The rally in this sector—similar to the boom surrounding AI—is driven by hopes for a bright future. Bank of America expects the quantum computing market to reach a volume of around USD 4 billion by 2030. Last year, revenues were about USD 300 million, with “pure play” companies accounting for less than a third of that. Rigetti Computing belongs to this segment and builds quantum computers using superconducting circuits. These systems are particularly fast and flexible. In August, Rigetti introduced “Cepheus-1-36Q”, which likely represents a technological breakthrough. The system demonstrates a median two-qubit gate fidelity—a measure of computational precision—of 99.5%. Compared with the previous model, this means the error rate has been cut in half. Rigetti employs a modular architecture: the latest system combines four chips, each with a performance of 9 qubits. This design allows the computers to be scaled up relatively easily. Before the end of this year, the company aims to release a system with the same fidelity but more than 100 qubits.
“We benefit from the many advantages of superconducting qubits, including gate speeds more than 1`000 times faster than other modalities,” enthuses CEO Subodh Kulkarni. At the end of September, Rigetti received an order for two “Novera” systems, each with 9 qubits. Behind these orders—worth a combined USD 5.7 million—are a Japanese technology company and a California-based startup focused on applied physics and AI. Both systems are scheduled for delivery in the first half of 2026. Investors will learn how business developed in the third quarter of 2025 on November 10. With that interim report, the CEO is also expected to provide an update on the company’s technological progress. The innovation drive of Rigetti’s roughly 150 employees should not be constrained by money: following a capital increase in June, the company held liquidity of nearly USD 571 million by midyear (see chart).
Nevertheless, it’s hard to deny that there’s a certain overheating in this and other quantum computing stocks. In the event of a correction, a soft-callable barrier reverse convertible on Rigetti Computing could prove to be an interesting alternative investment. Owing to the high volatility of the underlying stock, this product offers attractive coupons. In CHF, the guaranteed quarterly payout amounts to 13.4% p.a.; in USD, the coupon reaches 17% p.a. These returns are partially protected by a barrier at just 49% of the initial level. As long as Rigetti Computing does not fall to or below this mark over the next 15 months, the issuer repays the full nominal amount. After a barrier breach, redemption depends on the further performance of the volatile underlying stock. Investors should also note the soft-callable feature, which allows for early termination and repayment of the BRC.
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