Rigetti Lands $100M CHIPS Act Boost, Stock Soars

Rigetti Computing just made waves on the stock market, with its shares climbing significantly after securing a major federal investment. The quantum computing pioneer formalized an agreement with the U.S. Department of Commerce, solidifying its position in the nation's burgeoning quantum infrastructure.

On May 22, 2026, the company's stock surged nearly 24%, capping a week that had already seen gains of approximately 48%. This market excitement followed Rigetti's May 21 disclosure that it had signed a letter of intent for a prospective award of up to $100 million. This substantial funding, spread over three years, is earmarked to accelerate superconducting quantum computing research and development under the CHIPS and Science Act.

The agreement, initially entered into by Rigetti & Co, LLC—a wholly-owned subsidiary—on May 20, 2026, outlines the proposed $100 million award. The funding flows from the CHIPS Research and Development Office Broad Agency Announcement, a strategic initiative designed to bolster U.S. leadership in critical emerging technologies like quantum computing. As part of the arrangement, the Department of Commerce is slated to receive an equity stake in Rigetti, proportional to the total award amount. The implied issuance price for these shares will be determined by the lowest reported closing price on specific dates, including May 5, 2026 (when the first draft of the LOI was transmitted), May 20, 2026 (the LOI execution date), and the eventual award issuance date, with a 15% discount applied. This structure provides vital federal validation and capital, while also introducing potential dilution for existing shareholders.

Rigetti Computing is a key player in the full-stack quantum computing space, specializing in superconducting quantum computing, miniaturized readout electronics, and advanced cryostat architectures. The company designs and manufactures its cutting-edge chips at Fab-1, its dedicated quantum device manufacturing facility. In 2026, Rigetti deployed Cepheus-1-108Q, a multi-chip quantum computer built around twelve 9-qubit chiplets, showcasing its commitment to pushing the boundaries of quantum technology.

Dr. Subodh Kulkarni, President and CEO of Rigetti Computing since December 2022, leads the company with over three decades of experience in the semiconductor industry. Before joining Rigetti, Dr. Kulkarni served as President, CEO, and a board member of CyberOptics Corporation from 2014 until its acquisition in November 2022. He also held the CEO position at Prism Computational Sciences, bringing a deep technical and leadership background to his current role. His academic credentials include a B.S. in chemical engineering from the Indian Institute of Technology, Mumbai, and both an M.S. and Ph.D. in chemical engineering from MIT.

Dr. Kulkarni expressed his honor regarding the federal partnership, stating, "We are honored that the U.S. government is seeking to partner with Rigetti to accelerate the pace of quantum computing commercialization and to bolster U.S. leadership in this revolutionary field." He emphasized the impact of the investment, adding, "This investment will allow us to tackle key scaling bottlenecks more rapidly and get us closer to utility-scale quantum computing."

Rigetti's funding is part of a broader quantum initiative announced by the Department of Commerce on May 21, 2026, in Washington, D.C. This package includes quantum-focused letters of intent totaling approximately $2.013 billion in planned CHIPS and Science Act incentives distributed among nine companies. Other notable recipients include IBM, which is set to receive $1 billion to establish a new quantum foundry subsidiary for quantum-grade superconducting wafers, and GlobalFoundries, slated for $375 million to establish a secure, domestic quantum foundry. Seven quantum computing companies, including Atom Computing, Diraq, D-Wave, Infleqtion, PSIQuantum, Quantinuum, and Rigetti, are receiving funds to advance various modalities and accelerate research and development. Secretary of Commerce Howard Lutnick commented on the initiative, stating, "With today's CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation." He further noted that these investments would build on domestic industry, create jobs, and advance quantum capabilities.

The CHIPS and Science Act is a critical federal effort designed to strengthen domestic technology supply chains and enhance national and economic security. By supporting advanced manufacturing and packaging technology, the act is crucial for scaling complex systems like quantum computers. Rigetti’s systems, which use superconducting qubits, are capable of achieving gate speeds in nanoseconds—roughly 1,000 times faster than alternative qubit modalities such as trapped-ion or neutral-atom systems. This speed advantage, combined with the new funding, is expected to help Rigetti overcome significant scaling challenges and move closer to achieving utility-scale quantum computing.

The news was met with positive reactions from financial analysts. Several firms had already issued favorable ratings for Rigetti’s stock in the months leading up to the announcement. Wedbush and Rosenblatt both issued "Outperform" and "Buy" ratings, respectively, on January 21, 2026, while Mizuho gave an "Outperform" rating on December 11, 2025. Following the federal funding news, Cantor Fitzgerald reiterated an "Overweight" rating with a $30 price target, Craig-Hallum maintained a "Buy" rating with a $30 price target, and Needham upheld a "Buy" rating. TD Cowen identified Rigetti as one of the three largest beneficiaries of the Department of Commerce's quantum investments, alongside D-Wave Quantum and GlobalFoundries, underscoring the strategic value of the quantum computing industry. Overall, Rigetti Computing currently holds a consensus "Moderate Buy" rating from analysts, with an average price target of $29.18.

For investors, this federal backing significantly improves Rigetti's long-term commercial prospects, providing a substantial vote of confidence from the U.S. government. While the company's stock has seen volatility in the past, including a notable decline in late 2025 after a surge that some analysts dubbed a "quantum bubble," this $100 million agreement provides a solid foundation for future growth and innovation in the rapidly evolving quantum computing landscape.