Why Rigetti Computing Stock Soared in April

Shares of Rigetti Computing (NASDAQ: RGTI) surged higher in April. The company's stock gained 12% over the course of the month. The strong performance came as the S&P 500 and the Nasdaq Composite indexes had a particularly chaotic month.

Rigetti, which is working to develop quantum computing, made two major announcements this month that sent its stock higher.

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Rigetti was chosen by DARPA

Earlier in the month, the Defense Advanced Research Projects Agency (DARPA) announced it had selected 15 companies for its ambitious quantum computing program, including Rigetti.

The initiative from the same agency that helped develop GPS technology and laid the foundations of the internet will explore whether it's possible to build a "useful" quantum computer that "can achieve utility-scale operation -- meaning its computational value exceeds its cost" by 2033. The initiative is part of the DOD's push to lead quantum technology globally and maintain its edge over China.

DARPA's name carries a lot of weight, and investors were excited to see Rigetti as one of the named participants. Its selection validates the company's technology and boosts its profile.

Image source: Getty Images.

Rigetti was chosen by Innovate UK

Later in the month, on the heels of the selection to DARPA's program, Rigetti announced that its wholly owned U.K. subsidiary was selected as one of the winners of the Quantum Missions pilot competition from Innovate UK -- the country's innovation agency.

Rigetti will now work alongside two organizations to benchmark and enhance quantum error correction (QEC) capabilities on superconducting quantum computers. QEC is a critical component in making quantum viable for commercial applications. This was seen by investors as further validation of Rigetti's technology by a prestigious organization.

There is a long road ahead for Rigetti and quantum technology

Although it's clear that Rigetti is one of the most promising quantum companies, the technology is still in its infancy. It is likely to be a long time before any company is able to produce a robust, stable, and commercially viable quantum computer. That's quite possibly a decade or more out. However, if and when it does happen, the technology could prove truly revolutionary.

There is no guarantee Rigetti will be the one to do it, however. If you are an investor with a particularly high risk tolerance and the ability to wait a decade or more for your investment to pay off, Rigetti is one of the better quantum stocks on the market. However, I would strongly suggest spreading your investment among many quantum stocks. The technology's maturation is just too far off to be able to tell which company's approach will work.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.