Quantum Shock: Rigetti Stock Free Falls 45% Amid Harsh Reality Check from Nvidia CEO

The quantum computing dream suffered a brutal jolt today as Rigetti Computing’s stock plummeted by a jaw-dropping 45.41%, closing at $10.04. This staggering single-day decline of $8.35 left investors reeling. After hours, the stock managed a modest rebound, ticking up by 2.89% to $10.33.

What Triggered Rigetti’s Collapse?

The seismic sell-off was sparked by Nvidia CEO Jensen Huang during his keynote address at CES 2025. Huang estimated practical quantum computing solutions might still be 15 to 20 years away, a timeline that poured cold water on investor enthusiasm. The broader quantum computing sector felt the aftershocks, with companies like IonQ also experiencing significant declines.

The Perfect Storm for Rigetti

Rigetti’s downfall wasn’t entirely out of the blue. The company had recently surged to a record high of $19.38 on January 2, 2025, riding a speculative wave. However, analysts and market observers have long cautioned against such inflated valuations.

Forbes had previously pegged Rigetti’s 12-month target price at just $5.20—nearly 74% below its January peak—underscoring concerns about its revenue struggles, escalating cash burn, and sustainability of its business model. Today’s crash served as a harsh reminder of these warnings.

Adding to investor jitters, Rigetti’s short interest ratio stood at 0.6, reflecting moderate bearish sentiment. Meanwhile, sector-wide volatility has surged from 22% to 35% over the past year, further amplifying the risk profile of stocks like Rigetti.

Nvidia CEO’s Remarks: A Sobering Reality

Huang’s comments at CES served as a wake-up call for quantum computing enthusiasts. Despite Rigetti’s innovative strides in quantum technology, the Nvidia chief’s assertion about the distant horizon for practical applications cast a shadow over the entire sector. The realization that meaningful breakthroughs may be decades away sent shockwaves through the market.

A Cautionary Tale for Speculative Investing

Rigetti’s sharp decline highlights the dangers of speculative exuberance in emerging tech sectors. While quantum computing holds immense promise, the lack of immediate revenue potential has created a precarious environment for companies in this space. The crash reinforces the need for investors to focus on fundamentals rather than hype.

Market Metrics Offer Mixed Signals

Interestingly, even after today’s massive drop, Rigetti’s stock is still trading above its 200-day moving average, a technical indicator that may provide some hope to optimistic traders. However, analysts predict further declines as the stock seeks equilibrium in the aftermath of today’s turbulence.

Investors should remain vigilant as Rigetti navigates this challenging period. The company’s ability to achieve revenue growth, optimize capital use, and manage investor expectations will be critical in determining its future trajectory.