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We recently published a list of AI Stocks Dominate Friday’s Top 10 Performers. In this article, we are going to take a look at where Rigetti Computing Inc. (NASDAQ:RGTI) stands against other AI stocks that dominate Friday’s top performers.
The stock market bounced back on Friday, erasing the week’s losses following news that a feared government shutdown is unlikely to happen amid news that a funding plan is likely to be passed.
The tech-heavy Nasdaq recorded the highest gain, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.
Ten companies, predominantly under the AI industry, mirrored the broader market optimism, registering strong double-digit gains during the session. In this article, we have named the day’s best performers and detailed the reasons behind their performance.
To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.
A close up of an engineer typing at a quantum computing station in a modern office space.
Rigetti Computing Inc. (NASDAQ:RGTI)
Rigetti Computing soared by 29 percent on Friday before finishing the day just up by 28.23 percent at $11.22 apiece as investor funds flocked to AI stocks to minimize risks from the ongoing market uncertainties.
RGTI traded higher in line with its quantum computing peers, namely D-Wave Quantum Inc. (QBTS) and IONQ, which rose as high as 41 percent and 13 percent, respectively, at intraday trading.
Just recently, RGTI secured a $35 million investment from Quanta Computer and partnered with the company for the development of quantum computing for $100 million in the next five years.
Under the transaction, Quanta purchased RGTI shares at $11.59 apiece for a total of $35 million. Following the investment, the two parties would jointly invest $100 million over the next five years for the development of quantum computers.
Meanwhile, RGTI is expected to release a 36-qubit system based on four 9-qubit chips by mid-2025.
By the end of the year, it expects to release a system with over 100 qubits with a targeted 2x reduction in error rates from the current level.
Overall, RGTI ranks 3rd on our list of AI stocks that dominate Friday’s top performers. While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RGTI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.