Rigetti Computing (NASDAQ: RGTI) shares jumped 9.6% on Friday, outpacing a rival that received a glowing analyst endorsement, while Rigetti itself received no mention at all.
The gains came after BMO Capital analyst Harsh Kumar initiated coverage of D-Wave Quantum (NASDAQ: QBTS), sending that stock up 6.9% through 1:10 p.m. ET on Friday.
Kumar assigned D-Wave an outperform rating and set a price target of $35, a level that would represent nearly double the stock’s current price over the next year.
In his note, Kumar described D-Wave as “best positioned in the quantum space to have commercial success,” citing the company’s dual approach to quantum computing.
That two-pronged strategy explores both annealing and gate models, which Kumar believes allows D-Wave to reach more accurate computational conclusions than competitors relying on a single method.
Despite the bullish framing around D-Wave, Rigetti’s stock climbed even higher on the day, a puzzling outcome given that Kumar’s report made no reference to the company whatsoever.
The rally in Rigetti shares appears to reflect broader investor enthusiasm for the quantum computing sector, with positive sentiment around one player spilling over into others.
Kumar’s endorsement of D-Wave over its peers does not necessarily constitute a negative judgment on Rigetti, though it does establish a pecking order within the space.
One distinction between the two companies is their financial position, as both are burning through cash, but D-Wave currently holds more cash reserves than Rigetti does.
That gap in financial stability could matter as the quantum computing sector continues to develop and companies face sustained pressure to demonstrate a path toward profitability.
For investors watching the quantum computing space, Friday’s session illustrated how analyst coverage of one company can lift an entire sector, even when competitors go unmentioned in the research.
The broader takeaway is that market enthusiasm for quantum computing remains strong enough to reward stocks well beyond the specific names drawing direct analyst attention.
