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Along with artificial intelligence (AI), quantum computing is expected to be the next big revolution in the world of technology. In fact, McKinsey forecasts that the quantum computing market could reach $80 billion in size by 2035 or 2040.

Meanwhile, one small-cap quantum computing stock has been putting up AI-sized returns in the market this year. After more than doubling since the start of January, here's a closer look at what analysts expect from this penny stock ahead of tonight's earnings release.

Rigetti Computing Pulls Back Ahead of Q4 Earnings

Valued at $299 million by market cap, Rigetti Computing (RGTI) is a Berkeley-based quantum computing company that designs and develops quantum chips and develops software for programmers. They offer research, platforms, and software tools that can be used for chemical simulation, benchmarking, machine learning, optimization, and educational purposes. Founded in 2013, it currently operates in the U.S. and the U.K.

RGTI has spiked more than 100% so far this year, but still trades 41% below its 52-week high. The shares are off about 1.4% this afternoon ahead of the post-close release of Rigetti Computing's Q4 earnings, suggesting investors may be bracing for a less-than-impressive report.

Looking back at the company's 3Q results, which were reported back in November, Rigetti posted revenue of $3.11 million, up from $2.8 million in the year-ago quarter. The quarterly loss narrowed to $16.8 million, or $0.13 per share, from the previous year’s $31.3 million. However, the results fell short of Wall Street's consensus estimates.

Operating costs came at $19.1 million during Q3, down significantly from $33.3 million in Q3 2022, thanks to lower stock compensation expense as well as workforce reductions earlier in the year.

What Do Analysts Expect for RGTI Stock?

In tonight's Q4 release, analysts will be looking for RGTI to report a per-share loss of $0.06, on an adjusted basis, on revenue of $3.08 million. The stock is currently priced at 28.4x forward sales, which is a discount relative to its competitors like D-Wave Quantum (QBTS) and IonQ (IONQ).

Overall, there is a bullish sentiment among the analysts following Rigetti stock - though, with only three brokerage firms in coverage, there's not much breadth of opinion. Analysts have a consensus “Strong Buy” rating, with 2 “Strong Buys” and 1 “Moderate Buy.”

The mean price target for RGTI is $3.17, which implies expected upside of 58.5% from current levels.

On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.