In the increasingly high-profile market of quantum computing stocks, Rosenblatt analyst John McPeake recently caused a stir with his assessment of Rigetti and Quantum Computing stocks.
• Rosenblatt added Rigetti Computing and Quantum Computing to the assessment
• Analyst assigned high price targets for both stocks
• Some risks on Rigetti, more confidence on Quantum Computing
Analyst John McPeake from Rosenblatt Securities included the shares of Rigetti Computing and Quantum Computing in his valuation in mid-January and gave both stocks a clear buy recommendation. His optimistic tone reflects the general outlook for the quantum computer market around Rigetti, Quantum Computing, D-Wave Quantum and Co., because as “TipRanks” reports, the market research company Research and Markets, for example, predicts that the global market for quantum computers will grow from $3.52 billion last year to $20.2 billion in 2030.
Rigetti Computing: Leap of trust despite risks
In his analysis, McPeake set a price target of $40 for Rigetti Computing and therefore sees strong upside potential of around 70.6 percent compared to the stock’s last NASDAQ closing price of $23.45 (as of January 23, 2026). McPeake based this positive perspective primarily on the company’s technological orientation: Rigetti pursues a modular approach to qubit scaling that relies on networked “chiplets” instead of monolithic chips. The company also manufactures its processors internally in California, which McPeake interprets as a competitive advantage. “We like Rigetti’s modular approach to scaling qubits and their approach to internal manufacturing,” TipRanks quoted the analyst as saying. In addition, Rigetti’s quantum computers are suitable for a wide range of real-world applications. At the same time, however, the expert admitted that the group would only be able to achieve profitability in a few years.
Despite his overarching optimism, the Rosenblatt analyst also sees risks with Rigetti elsewhere. Rigetti recently had to postpone the market launch of its largest quantum computer “Cepheus-1-108Q” and, according to a press release, now expects “general availability towards the end of the first quarter of 2026”. The company cited the reason that the machine’s performance and error rate needed to be further improved. Specifically, the two-qubit gate fidelity of the system is currently 99.0 percent, which is below the desired target value of 99.5 percent. According to “StocksToday”, this key figure is crucial for the reliability of the calculations – and also an important competitive factor. For comparison: According to Bitget, competitors like IBM currently achieve a value of 99.92 percent with their quantum computing systems. “Rigetti actually has to reduce its error rates in order to become more competitive,” Rosenblatt analyst McPeake is quoted by “TechStock²”. In his analysis, according to “TipRanks”, the expert gave Rigetti a “leap of confidence” in this regard, although error rates and schedules with the Cepheus-1-108Q are currently a small problem. According to “Seeking Alpha”, the analyst sees Rigetti’s collaboration with Riverlane, the leading partner for quantum error correction, as promising in the medium to long term.
Overall, however, the Rosenblatt expert expects strong growth for Rigetti’s business in the future. “Market forecasts generally do not extend beyond 2030 – however, we expect that the majority of value creation in this market will likely be generated after quantum advantage is achieved around 2030 for real-world problems in materials science, chemistry and pharmaceuticals. [Rigetti] divides its revenues into professional services, hardware and Quantum as a Service (QaaS). “We forecast compound annual revenue growth (CAGR) of 83 percent through 2030 and then 56 percent through 2035. In 2035, the company’s revenue is expected to be split between 54 percent quantum hardware, 41 percent QaaS and 5 percent professional services,” McPeake said, according to TipRanks.
Quantum Computing: Attractive risk-reward profile
John McPeake was also very positive about quantum computing in his study. The Rosenblatt analyst set a price target of $22 for the share – around 92 percent above the last closing price on the NASDAQ at $11.46 (as of January 23, 2026). McPeake justified his buy recommendation and high price target according to “TipRanks” with the fact that Quantum Computing has legitimate quantum technologies in the areas of photonics, data processing, security and sensors and also has its own factories for thin-film lithium niobate (TFLN), which could cover both its own needs and those of the industry for integrated quantum photonics, nonlinear optics and optical waveguides.
In addition, the company is also financially stable with a cash reserve of around $1.6 billion and no debt, which increases the scope for expansion into related areas such as photonics or quantum sensing. According to “TechStock²”, Quantum Computing is currently trying to secure further short-term commercial assets and expand its business area by taking over some factories of the insolvent Luminar Technologies, a manufacturer of LiDAR hardware and software platforms. As “Seeking Alpha” writes, citing the Rosenblatt expert, Quantum Computing is trying to acquire Luminar’s assets “for less than five times sales, which should improve the profit and loss statement and further diversify the business into another important laser market.”
“We think the risk-reward ratio here is good, due to the immediate opportunity to participate in quantum computer development, the factory-related opportunity to put our own products on chips and win customers in the fast-growing optical communications sector, the insight into the development of a photonic gate-based quantum computer and finally due to the possibility of integrating quantum security into everyday consumer devices,” said the Rosenblatt analyst, according to “TipRanks” in justifying his high course target.
Expert relies on long-term potential
In general, John McPeake’s analysis of the two stocks seems to be primarily a plea for long-term positions in one of the most technically exciting but also riskiest areas of the technology industry, because his bullish outlook for Rigetti and Quantum Computer is based primarily on the expectation that advances in quantum hardware and software could have significant economic effects in the medium to long term. However, whether these bets pay off depends heavily on whether companies can actually implement their ambitious technology roadmaps and meet broader commercial demand.
Editorial team finanzen.net
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