Rigetti Computing Stock Rockets 47% Amid Quantum Computing Hype: What’s Driving the Surge?
Rigetti Computing (NASDAQ: RGTI) recently witnessed an extraordinary 47% surge in its stock price, signaling a renewed wave of enthusiasm for quantum computing. Despite the broader sector’s lingering skepticism, Rigetti’s meteoric rise underscores the mix of optimism, speculative interest, and groundbreaking advancements that define this emerging field.
A Quantum Leap in Stock Performance
Rigetti’s impressive growth trajectory in the fourth quarter of 2024 saw its share price catapult 1,849%, from $0.78 on September 30 to $15.20 by December 31, 2024. The company’s recent surge comes amid heightened investments in quantum computing by technology giants and the U.S. government, reflecting its potential to revolutionize industries such as healthcare, finance, and logistics.
Key Catalyst: The Ankaa-3 Quantum System
On December 23, 2024, Rigetti unveiled its 84-qubit Ankaa-3 quantum system, a significant milestone in its roadmap. The system boasts enhanced performance capabilities and 3D signal delivery, cementing Rigetti’s position as a key player in the quantum computing space. This innovation has fueled investor optimism, even as the company remains unprofitable, reporting $2.4 million in revenue for Q3 2024.
While these advancements signal progress, Rigetti’s stock had previously faced a sharp decline of over 70%, triggered by comments from NVIDIA CEO Jensen Huang. Huang projected that practical quantum computing applications might still be 15 to 30 years away, with a 20-year timeline being the most probable. Similarly, Meta Platforms CEO Mark Zuckerberg’s remarks about quantum computing’s distant practicality added to the skepticism.
Speculative Frenzy or Strategic Opportunity?
The December rally was further fueled by Google’s announcement of its new quantum chip, Willow, igniting widespread investor interest in the quantum sector. This surge was not unique to Rigetti but part of a broader pattern, as the industry continues to balance speculative excitement with the reality of quantum’s long-term potential.
Despite its prior volatility, Rigetti’s shares are currently trending upward, supported by a strong technical setup. A “double-barrel” technical support system, identified at the 50-day moving average and $7.50 price level, has reinforced the stock’s rally. Additionally, a rising 20-month moving average points to long-term momentum.
Analyzing the Numbers
Year-to-date, Rigetti has delivered a staggering 499.01% return, vastly outperforming the sector’s historical average annual return of -15.37%. The stock’s Relative Strength Index (RSI) of 16.79 suggests oversold conditions, a technical indicator that often precedes further gains or corrections.
The Quantum Market Outlook
Rigetti’s recent rally, while remarkable, also highlights the speculative nature of the quantum computing market. Analyst opinions remain divided, with some investors viewing the spike as a short-term opportunity to cash out, while others see it as a step toward capturing long-term value in a high-potential industry.
As Rigetti prepares for the release of its innovative quantum chips in 2025, the company’s trajectory will depend on its ability to achieve profitability and deliver on the promise of quantum computing. For now, the stock continues to ride the wave of quantum excitement, offering investors both opportunity and risk in equal measure.
