Rigetti Computing Stock Plunges 47% Amid Nvidia Quantum Computing Forecast and Macroeconomic Woes
Rigetti Computing (NASDAQ: RGTI) has seen a dramatic plunge in its stock price, falling 47.2% this week. The steep drop follows bearish comments from Nvidia’s CEO and renewed concerns over macroeconomic risks. Despite this significant setback, Rigetti’s share price remains up an astounding 781% year-to-date, reflecting its volatile nature as a speculative player in the quantum computing sector.
Nvidia CEO’s Quantum Computing Comments Spark Sell-Off
The primary catalyst for Rigetti’s sharp decline stems from comments made by Nvidia CEO Jensen Huang during this year’s CES event. Huang delivered a sobering assessment of the quantum computing landscape, stating that practical applications of the technology are likely at least 15 to 30 years away. His remarks were far more conservative than some industry expectations, which had previously targeted 2030 for the arrival of commercially useful quantum computing solutions.
Huang’s statement, “If you picked 20 [years], I think a whole bunch of us would believe it,” was a particularly sharp blow to investor sentiment. While Huang acknowledged quantum computing’s potential to enhance artificial intelligence (AI) in the future, his forecast undercuts short-term enthusiasm for the sector and raises questions about the timelines for monetization. This perspective has hit smaller companies like Rigetti harder, as they rely on near-term breakthroughs to maintain investor confidence and funding.
Macroeconomic Risks Amplify Pressure on Speculative Stocks
In addition to Nvidia’s outlook, broader macroeconomic challenges have compounded Rigetti’s struggles this week. The latest data from the Bureau of Labor Statistics revealed higher-than-expected job openings, which markets interpreted as a sign of persistent inflationary pressures. Rising U.S. Treasury bond yields have also stoked fears of tightening financial conditions, further dragging down speculative stocks like Rigetti.
Meanwhile, reports that President-elect Trump may declare a national economic emergency to implement high tariffs on imports have introduced another layer of uncertainty to financial markets. Speculative and growth-focused stocks, which are particularly sensitive to economic turbulence, have been hit hard in this environment.
Rigetti’s Recent Rally and Volatility in Focus
Despite this week’s steep losses, Rigetti’s stock remains up significantly over the last year, fueled by investor excitement around its position in the quantum computing space. The company’s recent highs reflect optimism about its potential to capitalize on an emerging industry, but the latest developments highlight the risks tied to speculative investments in a nascent field.
With Nvidia’s bearish forecast and macroeconomic dynamics weighing heavily on the market, Rigetti’s significant pullback underscores the challenges of investing in high-growth, speculative sectors. Investors in quantum computing companies like Rigetti may need to adjust their expectations for the industry’s growth timeline while navigating an increasingly uncertain macroeconomic environment.
