Rigetti Computing’s stock nosedived by a staggering 45.41% today, closing at $10.04—a drop of $8.35—marking one of the steepest single-day losses in recent memory. The stock saw some relief in after-hours trading, ticking up by 2.89% to $10.33.
Analysts warn: Rigetti stock could drop even more
Why Rigetti’s stock crashed 45%?
This sharp decline followed remarks by Nvidia CEO Jensen Huang at CES 2025, who estimated practical quantum computing solutions might still be 15 to 20 years away. The statement triggered a widespread sell-off in quantum computing stocks, pulling Rigetti and other sector players like IonQ into a downward spiral.
Rigetti’s fall wasn’t entirely unexpected. After a speculative surge pushed its shares to a record $19.38 on January 2, 2025, today’s plummet signals a sobering return to reality. Analysts have long warned of overvaluation in quantum computing, with Forbes recently projecting Rigetti’s 12-month target price at just $5.20—nearly 74% below its peak. Coupled with concerns over Rigetti’s revenue struggles and increased cash burn, investor sentiment has turned decisively cautious. Meanwhile, a short interest ratio of 0.6 highlights moderate bearish sentiment, aligning with the sector’s elevated weekly volatility, which has jumped from 22% to 35% over the past year.
You won’t believe why Rigetti stock went 40% down
Investors should take note of Rigetti’s post-plunge valuation, especially with its stock still trading above its 200-day moving average. While today’s 45% drop underscores heightened risk in the quantum computing sector, it also presents a stark warning against speculative exuberance. The Nvidia CEO’s remarks serve as a reality check, reminding traders that meaningful breakthroughs in quantum computing remain distant. Prudent investors may want to tread carefully here, focusing on Rigetti’s fundamentals rather than market buzz.
That said, quantum computing remains a promising long-term opportunity. However, with analysts predicting further declines and volatility persisting across the sector, patience is key. Investors would do well to keep Rigetti on their watchlist, but immediate action may be premature until the stock stabilizes or management provides clearer signals of revenue growth and capital efficiency.
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Featured image credit: Rigetti
