10 Pump and Dump Stocks Favored by Hedge Funds

8. Rigetti Computing, Inc. (NASDAQ:RGTI)

Number of Hedge Fund Holders: 17

Rigetti Computing, Inc. (NASDAQ:RGTI) is a quantum computing company focused on developing and commercializing superconducting quantum processors. It builds and operates quantum computers, integrating them with classical computing systems to provide hybrid quantum-classical solutions. The company offers cloud-based access to its quantum hardware through its Quantum Cloud Services (QCS) platform, targeting applications in machine learning, optimization, and material science. RGTI serves enterprise, government, and research customers, generating revenue through cloud subscriptions, partnerships, and government contracts. Its competitive focus is on scaling quantum processors and improving error correction to advance practical quantum computing. The California-based company ranked tenth on our recent list of 12 Best Multibagger Stocks to Buy in 2025.

Rigetti Computing, Inc. (NASDAQ:RGTI) has embarked on a significant strategic partnership with Quanta Computer Inc., where both companies have pledged investments exceeding $100 million over the next five years to drive advancements and commercialization in superconducting quantum computing. In December 2024, Rigetti introduced its 84-qubit Ankaa-3 system, which incorporates a groundbreaking hardware redesign, delivering improved performance with a median iSWAP gate fidelity of 99.0% and a median fSim gate fidelity of 99.5%. RGTI’s modular architecture, designed for seamless integration across the technology stack, sets it apart in the quantum computing space. To achieve scalability, the company is leveraging a chiplet strategy, with plans to showcase 36 qubits by mid-2025 and more than 100 qubits by year-end, while also striving to halve error rates.

December 2024 marked key commercial milestones for Rigetti Computing, Inc. (NASDAQ:RGTI), including the sale of its first quantum processing unit to Montana State University and an additional Novera system to the UK government. Financially, the company reported Q4 2024 revenue of $2.3 million with a gross margin of 44%. RGTI’s robust cash position of $217.2 million in cash, equivalents, and investments, as of year-end 2024, is anticipated to sustain its operations for the next three years. While management believes that wide-scale commercial applications of quantum computing remain four to five years away, the company continues to prioritize research and development milestones to lay the groundwork for future growth. Looking forward, its focus on technological advancements and strategic collaborations positions it for long-term success in the emerging quantum computing market. With high stock price volatility in the last 52 weeks and 17 hedge funds owning the stock, RGTI is one of the pump and dump stocks favored by hedge funds.