Is Rigetti Computing (RGTI) Following Wall Street’s Downturn? A Look at the Quantum Computing Stock Struggles

The stock market has been on a roller coaster ride recently, with Wall Street’s main indices finishing the shortened trading week in the red. The Dow Jones, Nasdaq Composite, and S&P 500 all experienced significant declines, mainly driven by hotter-than-expected labor market data that fueled concerns over the Federal Reserve’s interest rate decisions.

Among the companies mirroring this wider market downturn is Rigetti Computing, Inc. (NASDAQ: RGTI). Shares of the quantum computing company plummeted by 11.06% on Friday, ending the week at just $8.93 each. This drop highlights investor concern and recalibration within the quantum computing space, especially after comments made by Nvidia CEO Jensen Huang. Huang recently stated that the practical use of quantum computers could still be 15 to 30 years away, leading to doubts about the timeline for quantum computing advancements.

Why Did Rigetti Computing (RGTI) Tumble?

Rigetti Computing, which had been riding high on the artificial intelligence (AI) boom, has now faced a reality check. Quantum computing stocks, in general, have seen valuations that some experts, including AXS Investments CEO Greg Bassuk, deem “a bit lofty.” Bassuk further added that the market has long believed that the mass appeal of quantum computing is still years away, and therefore, the negative news surrounding Rigetti’s stock price is not unexpected.

Despite the potential of quantum computing and Rigetti’s role in the sector, the valuation correction has caught the attention of investors. For those looking for quicker, more tangible returns, the AI sector continues to dominate the conversation. Investors are shifting their focus to AI stocks with shorter-term growth potential, while companies like Rigetti may have to wait longer for their breakthrough moment.

Rigetti Computing’s Market Performance and Future Outlook

Rigetti Computing ranks third on our list of companies mirroring Wall Street’s downturn, following the overall market correction. While it remains a leader in the emerging quantum computing field, its stock price is highly sensitive to the broader economic climate and the timeline of technological breakthroughs. The quantum computing market’s potential is undeniable, but investors are likely wary of companies like Rigetti due to the extended wait for commercialization of quantum technologies.

As the market recalibrates, investors are likely focusing on companies that offer immediate value, particularly those in the AI sector. The boom in AI stocks and the rapid advancements in artificial intelligence technologies may be seen as more attractive investment opportunities, especially given their shorter timelines for returns.

The AI Edge: More Promising Investments Than Rigetti?

If you’re looking for an AI stock that offers a higher potential for returns in the short term and trades at a reasonable valuation, there are options on the market that could provide more immediate rewards than Rigetti. For example, our latest report highlights some of the cheapest AI stocks that trade at less than five times their earnings. These stocks are gaining momentum and could be more suited for investors seeking faster gains amid a volatile market.

In the case of Rigetti, while the company continues to work on developing its quantum computing capabilities, it’s clear that the AI sector’s shorter-term growth is outpacing quantum computing’s longer roadmap to mass adoption.

Stay tuned for more insights on quantum computing, AI stocks, and the evolving trends shaping the future of technology and market performance.