Rigetti Computing Stock Upgraded to 'Buy' by B. Riley Following Major Quantum Computer Order from India
In a significant vote of confidence for the quantum computing sector, financial services firm B. Riley has upgraded its rating on Rigetti Computing (NASDAQ: RGTI). Analyst Craig Ellis moved the stock from 'Neutral' to 'Buy' on January 22, while reaffirming a $35 price objective.
The upgrade, as detailed in a research note, is attributed not to a change in valuation metrics but to an improved near-term commercial outlook. This shift in perspective was catalyzed by a concrete milestone: Rigetti's recent announcement of an $8.4 million purchase order from India's Centre for Development of Advanced Computing (C-DAC), a premier R&D organization under the Ministry of Electronics and Information Technology.
The order, secured by Rigetti's Indian subsidiary, is for the delivery and on-premises installation of a 108-qubit quantum computer at C-DAC's Bengaluru center in the second half of 2026. Analysts suggest this deal provides much-needed clarity and de-risks Rigetti's revenue projections for that period, moving beyond theoretical potential to tangible government-backed contracts.
"This C-DAC order is a watershed moment for Rigetti," said Dr. Anya Sharma, a technology portfolio manager at Horizon Capital. "It validates their full-stack approach—building both the quantum processors and the systems—in a competitive international market. A national-level contract like this is a powerful reference customer."
However, the view is not universally optimistic. Mark Devlin, a veteran tech analyst known for his skeptical stance, offered a sharper critique: "Let's not get carried away. $8.4 million is a rounding error for big tech, and 2026 is a lifetime away in tech cycles. This feels like a classic 'story stock' upgrade based on hope, not substance. The path to profitability in quantum remains murky and capital-intensive."
Rigetti Computing, a pioneer in full-stack quantum computing, designs and manufactures superconducting quantum processors and integrated systems. The company's stock has been volatile, emblematic of the high-risk, high-reward nature of the emerging quantum computing industry.
"The upgrade reflects a maturation in how the market evaluates quantum companies," added Sarah Chen, a research fellow at the Institute for Technological Futures. "The focus is shifting from pure qubit counts to commercial partnerships and defined deployment timelines. Rigetti scoring a strategic national project in a major market like India is a significant data point in that evolution."
The broader quantum computing sector is closely watched as nations and corporations race to achieve practical quantum advantage. Deals with government research bodies are often seen as critical stepping stones, providing funding, real-world testing environments, and credibility.