Rigetti could benefit from Amazon ‘break through,’ says Alliance Global Partners

Alliance Global Partners analyst Brian Kinstlinger notes that Amazon (AMZN) this morning announced a new quantum chip that can reduce the cost of implementing error correction by up to 90% compared to current approaches through the use of bosonic codes in what the firm calls a “break through.” However, Amazon did not disclose fidelity rates and its chip is only 9 qubits, so evaluating its positioning compared to Google (GOOGL) and Rigetti Computing (RGTI) is “difficult,” the analyst tells investors. While this “sounds like another very large competitor” for Rigetti, it is “a very important development” that could speed up the time it takes to get quantum computers into production and Rigetti is “a major benefactor from this announcement as its open architecture means that it easily integrates with the best of breed technology,” Alliance tells investors. The firm maintains a Buy rating and $15 price target on Rigetti shares, which are down 64c, or 7%, to $8.64 in afternoon trading.