RGTI stock jumps as Wedbush gives first Outperform rating, but big money managers made their move weeks ago

RGTI stock just received Wedbush’s first Outperform rating in the quantum computing space, marking a major turning point for investor confidence. The breakthrough initiated on December 17, 2025, signals the moment when Wall Street recognized Rigetti Computing’s decade-long leadership could drive quantum computing into the commercial mainstream. Meanwhile, sophisticated money managers and hedge funds are quietly loading RGTI shares in anticipation of the next wave.

Wedbush Breaks New Ground With RGTI’s First Outperform Rating

Wedbush Securities’ decision to initiate coverage with an Outperform rating represents the first major Wall Street firm to take such a positive stance on a pure-play quantum computing stock. Analyst Antoine Legault set a $35 price target, suggesting significant upside from recent price levels. The timing matters because it acknowledges that quantum computing is moving beyond hype toward genuine commercial viability.

Wedbush highlighted Rigetti’s decade-long expertise in superconducting qubit technology, distinguishing the company from newer entrants. This isn’t just a speculative bet—it’s recognition that Rigetti has spent years perfecting the hardware foundation that competitors are still building. The Outperform rating suggests the investing community believes Rigetti’s technical advantages can translate into market share gains as quantum computing transitions from research laboratory to enterprise deployment.

Institutional Money Is Flowing Into RGTI at Accelerating Pace

Big money managers have been quietly accumulating RGTI shares throughout 2025. Billionaire-led hedge funds including Israel Englander’s Millennium Management, Ken Griffin’s Citadel Advisors, and Steven Schonfeld’s Schonfeld Strategic Advisors all increased their positions during the third quarter. This insider buying pattern typically signals that sophisticated investors see asymmetric risk-reward opportunities ahead.

Institutional ownership jumped dramatically to 54.5% as of September 2025 from just 44.5% in June, a 10-percentage-point surge in just three months. Vanguard and BlackRock, the world’s largest asset managers, have also built stakes. When mega-cap institutional investors increase allocation to a stock this rapidly, it often signals they expect institutional demand to accelerate further down the road.

Quantum Computing Enters Its Inflection Point

Timeline	Milestone	Target Fidelity
By End of 2025	100+ qubit system	99.5%
By End of 2026	150+ qubit system	99.7%
By End of 2027	1,000+ qubit system	99.8%

The quantum computing industry is no longer theoretical—it’s entering the phase where engineering breakthroughs create actual commercial opportunities. Rigetti’s published roadmap shows progressive scaling toward 1,000+ qubits by 2027 with increasing operational fidelity. This progression matters because commercially viable quantum computers need both raw processing power and reliability measured in gate fidelity percentages.

The broader quantum computing market is attracting unprecedented capital because major tech companies, government agencies, and enterprises recognize that quantum advantage is coming. Financial projections show the global quantum computing market reaching $5.3 billion by 2029 at a 32.7% compound annual growth rate. Rigetti’s decade of technical work positions the company to capture a meaningful share of this expansion as customers graduate from pilot programs to production deployment.

Market Momentum Building With Analyst Consensus

The analyst community sentiment on Rigetti has shifted dramatically compared to earlier in 2025. Consensus among 10 tracked analysts now shows 7 Buy ratings and 3 Hold ratings, with no sell recommendations. The average 12-month price target stands at approximately $40.60, with aggressive targets reaching as high as $51 and conservative estimates at $24.36. This wide range reflects the sector’s inherent volatility but also the recognition that quantum computing could be transformative.

Wedbush’s $35 target price sits within the upper-middle range of analyst expectations, suggesting the firm believes Rigetti has room to run beyond current market pricing. When research teams begin coverage on emerging technology plays, they typically set targets based on worst-case, base-case, and bull-case scenarios. A $35 target implies analysts see multiple expansion potential if Rigetti executes on its roadmap and quantum computing reaches inflection point status.

Why Is Quantum Computing Heating Up This Quarter, and What Happens Next?

Quantum computing emerged as one of 2025’s hottest investment themes because the physics is advancing toward commercial reality faster than previously expected. Progress in qubit stability, gate fidelity, and error correction has convinced institutional investors that quantum systems could deliver practical business applications within 12-24 months, not 5-10 years as assumed just 12 months ago. This timeline compression drives capital into the space at accelerating velocity.

For Rigetti specifically, the combination of Wedbush’s Outperform rating, massive institutional buying, and concrete roadmap milestones creates a three-part catalyst structure heading into 2026. The company must execute on 150+ qubit deployment targets by year-end 2026, demonstrate commercial adoption through government and enterprise contracts (which already total $5.8 million in announced orders), and maintain the technical superiority that Wedbush highlighted. If Rigetti achieves these sequential milestones, institutional allocation could expand significantly beyond current 54.5% ownership levels.

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Sources

• Motley Fool – Institutional buying patterns and manager positions
• Wedbush Securities – Analyst rating and price target announcement
• Rigetti Investor Relations – Q3 2025 results and roadmap details