The impending release of the third-quarter gross domestic product (GDP) report by the Commerce Department holds significant benefits for the United States economy. A robust economic expansion leads to increased consumer spending, business investments and job creation. This, in turn, tends to boost overall stock market performance, which benefits sectors especially quantum computing. Quantum computing stocks, representing cutting-edge technology with transformative potential, will experience increased investment in research and development as the economy grows.
Rigetti Computing (NASDAQ:RGTI) is an American-based company for integrated systems, constructing quantum computers and superconducting quantum processors. RGTI stock has grown 59.43% YTD.
The quantum computing industry displayed confident outlooks in 2022, bringing in $717.3 million with projections for 2023 to reach $928.8 million. Furthermore, the industry as a whole has been rapidly growing. There were forecasts of 2030 reaching $6.5 billion, marking a CAGR of 32.1% during this seven-year period.
Financially, Rigetti Computing showed strong promises of growth in Q2 of 2023 through a high revenue of $3.33 million which grew 55.9% YoY. The company also beat consensus earnings estimates by 20.89% on revenue. However, net income dipped to -$16.97 million. However, this is mainly due to to the increased costs of developing its first quantum processing units. As sales increase, the company projects income to cover expenses in the upcoming fiscal years.
Ultimately, the largest factor behind Rigetti Computing’s growth has been the development of its quantum processing units. Recently, Rigetti Computing announced a nine-qubit QPU, which is expected to outperform other competitors at the same processing power. Furthermore, its upgraded Ankaa-2 system, the sequel to its successful Ankaa-1 system, is projected to be released in Q4 2023. Expect major upgrades to be announced in upcoming investor relations conferences. Projections are speculated for increased processing power building on top of the Ankaa-1 system.
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