Quantum computing just got a big vote of confidence from Washington. Rigetti Computing Inc. (RGTI) saw its stock jump nearly 6% in Tuesday's premarket trading after the company locked in a major U.S. government funding agreement. The deal? A cool $100 million to push the boundaries of quantum computing research.

While Rigetti was celebrating, the broader market was mostly flat. Nasdaq futures dipped 0.03%, and S&P 500 futures slipped 0.31%. But for Rigetti, this was a morning to pop the champagne.

U.S. Government Backs Rigetti With $100 Million

Rigetti announced Tuesday that its subsidiary signed a definitive agreement with the U.S. Department of Commerce for $100 million in funding. The money is earmarked for research and development in superconducting quantum computing, a key area where Rigetti is trying to make its mark.

The funding flows through the CHIPS Research and Development Office under the CHIPS Act, the landmark legislation aimed at boosting domestic semiconductor and quantum tech capabilities.

So what's Rigetti planning to do with all that cash? The company says it will focus on three main projects: developing smaller readout electronics, expanding cryogenic capacity, and advancing fabrication technology for highly connected quantum chips. These are the nuts-and-bolts pieces that could make quantum computers more practical and scalable.

In an interesting twist, the Commerce Department will also receive a minority, non-controlling equity stake in Rigetti. It's not every day the government becomes a shareholder in a quantum startup, but it shows how deep the federal commitment to this technology runs.

"We are proud to be selected by the U.S. government to accelerate R&D and progress against our roadmap to deliver commercially viable quantum computing capabilities," CEO Subodh Kulkarni said in the announcement.

Technical Picture Remains Challenging

Despite Tuesday's rally, Rigetti's stock is still in a bit of a technical rut. At $16.03, shares were trading 4.6% below their 20-day simple moving average (SMA) and 2.4% below the 50-day SMA. The picture gets worse further out: shares were 12.4% below the 100-day SMA and a hefty 16.9% below the 200-day SMA.

Momentum indicators aren't painting a prettier picture either. The MACD remains below its signal line, which typically points to weak near-term momentum. For traders watching the charts, $16.50 could act as near-term resistance, while $15.50 might offer support if the stock pulls back.

Rigetti Analysts Remain Bullish

Wall Street, however, isn't fazed by the technicals. Rigetti carries a Buy consensus rating, with six analysts setting an average price target of $32.60. That's a significant upside from current levels, suggesting analysts see real value in the company's long-term prospects.

Recent analyst moves include:

• Rosenblatt: Buy (Maintains forecast to $40.00) (June 11)
• Rosenblatt: Buy (Maintains forecast to $40.00) (Aug. 7)
• Wedbush: Outperform (Maintains forecast to $40.00) (Aug. 3)

Both Rosenblatt and Wedbush are sticking with a $40 price target, which is more than double where the stock currently trades. That's a bold statement, but it shows confidence in Rigetti's roadmap.

Top ETF Exposure

If you're looking for indirect exposure to Rigetti, there are a few ETFs that hold significant positions in the stock:

• Corgi Quantum Computing 2x Daily ETF (XQTM): 7.52% Weight
• WisdomTree Quantum Computing Fund ETF (WQTM): 5.33% Weight
• Corgi Quantum Computing ETF (CQTM): 7.52% Weight

Here's why that matters: Because RGTI carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. So if investors pile into quantum-themed ETFs, Rigetti could see a ripple effect in its share price.

Rigetti Price Action

In Tuesday's premarket trading, Rigetti shares rose 5.66% to $16.06, according to market data. The stock's reaction to the funding news shows investors are optimistic about what this government backing could mean for the company's future.

For now, Rigetti is riding high on the news, but the real test will be whether it can turn this funding into tangible progress in the race to build commercially viable quantum computers.