Rigetti Computing Inc. (RGTI) witnessed a significant surge of 8.03% in its stock price during the pre-market session on Tuesday. This bullish movement comes after Needham, a prominent research firm, raised its price target on RGTI shares from $2 to an impressive $17, maintaining a Buy rating.

The optimistic outlook from Needham is driven by the growing recognition of quantum computing's potential to disrupt the $1 trillion computing market over the next decade. Recent technical milestones achieved by Rigetti, combined with announcements of lucrative quantum computing contract awards and increased mentions by leading technology CEOs, have heightened mainstream investor awareness about the promising future of this emerging technology.

According to Needham's analyst, the surging valuations of pure-play quantum computing companies like Rigetti reflect the increasing belief that quantum computing could significantly impact and transform a meaningful portion of the computing industry. The firm noted that Rigetti's stock price has risen several-fold since September 30, 2024, mirroring the overall positive sentiment towards the quantum computing sector.