Rigetti Computing Secures Strategic Foothold with Major Indian Contract

Shares of quantum computing firm Rigetti Computing saw a modest recovery on Tuesday, advancing 2.8% to $18.21. This move represents an attempt to find stability following a difficult January, during which the stock declined by approximately 18%. Investor attention is currently divided between a significant multi-million dollar order from India that bolsters the company's international standing and a recent delay in a key product launch that has tempered optimism.

Prior to the positive news from India, Rigetti announced an operational adjustment on January 9 that weighed heavily on its stock performance last month. The company has postponed the commercial release of its Cepheus-1-108Q system to the end of the first quarter of 2026, a timeline later than initially communicated. Management cited the need for further performance optimization as the primary reason. Investor confidence is now closely tied to Rigetti's ability to meet this revised deadline and successfully deliver on its technical roadmap.

Indian Government Deal Provides Validation

Providing a crucial counterbalance to the delay, Rigetti announced a major contract win on January 20. The company secured an $8.4 million order from India's Centre for Development of Advanced Computing (C-DAC), a premier research institution under the Ministry of Electronics and Information Technology. Under the agreement, Rigetti will supply and install a 108-qubit quantum computer in Bengaluru, with deployment scheduled for the second half of 2026.

This contract serves as a powerful international endorsement of Rigetti's proprietary chiplet architecture and demonstrates demand for its hybrid quantum-classical systems. For a company competing against more established players, securing a government agency as a reference customer is of considerable strategic importance.

Should investors sell immediately? Or is it worth buying Rigetti?

Intensifying Competitive Landscape

The broader quantum computing sector continues to see fierce competition and strategic moves. In early February, rival IonQ revealed plans for an acquisition valued at $1.8 billion, aimed at bringing chip manufacturing capabilities in-house. This step accelerates the trend toward vertical integration within the market, increasing pressure on Rigetti to demonstrate that its business model remains competitive.

Trading volume for Rigetti shares reached roughly 30.5 million on Tuesday, slightly below the average. The $18 price level is being watched closely by traders from a technical perspective, given the stock's nearly 23% decline since the start of the year.

Forthcoming Financials in Focus

The coming weeks will be critical for Rigetti as markets monitor its progress against the updated Cepheus system schedule. Furthermore, the company's next quarterly earnings report is highly anticipated for insights into its cash flow position and the advancement of the landmark India project. This financial update will be key for assessing whether the current share price establishes a foundation for a sustained recovery or if further downward pressure remains likely.