Rigetti Computing 1,449% Surge in 2024 Faces Setback as Stock Pulls Back in 2025
Rigetti Computing (NASDAQ: RGTI) has captivated investors with its quantum computing breakthroughs and explosive 2024 stock gains, but 2025 has brought challenges for the company. The quantum computing specialist saw its stock price skyrocket by 1,449.4% last year, with massive excitement fueled by significant industry developments and strong analyst coverage. However, the stock has recently seen a 33% drop in 2025, raising questions about its future trajectory.
2024: Rigetti Quantum Computing Excitement Drives Record Gains
Rigetti’s explosive growth in 2024 came at a time when the quantum computing space was drawing immense interest. A pivotal moment came in Q4 2024 when Alphabet’s Google announced significant strides in quantum technology with its Willow chip, which was able to complete an advanced benchmark test in record time. Google’s breakthrough also tackled a significant challenge in quantum computing—reducing error rates as more qubits are added to the system, further boosting investor optimism in quantum stocks.
Adding fuel to the fire, Rigetti revealed its partnership with Quantum Machines on Dec. 9, 2024, focusing on using artificial intelligence (AI) to automate quantum computer calibration. This announcement underscored the growing overlap between quantum computing and AI, sparking even more excitement.
On Dec. 20, 2024, Craig-Hallum initiated coverage on Rigetti with a Buy rating and a $12 price target, citing the company’s potential to scale and outperform rivals in the quantum computing race. With these developments, Rigetti was positioned for major long-term success, and investors responded enthusiastically.
2025: Rigetti Faces a Pullback Amid Economic Pressure
However, 2025 has been a different story. The company’s stock has dropped by 33% year to date due to broader macroeconomic pressures and skepticism about the timeline for quantum computing’s commercialization. Much of the pessimism stems from comments made by Nvidia’s CEO Jensen Huang, who cast doubt on the feasibility of quantum computers becoming commercially viable within the next 15 years.
As one of the tech industry’s most influential figures, Huang’s forecast carries weight in investor circles. While Huang acknowledged the potential of quantum computing in advancing AI, his extended timeline for widespread commercial applications raised concerns for smaller players like Rigetti. His remarks have put a damper on investor enthusiasm, as they suggest that Rigetti and other quantum tech companies may face significant challenges in scaling their operations.
A Volatile High-Risk Investment with Massive Potential
Rigetti’s market cap stands at roughly $2 billion, and its valuation remains highly dependent on future growth in quantum computing. With the stock priced at 126 times expected sales for the year, Rigetti’s shares remain a volatile, high-risk investment in an emerging and speculative sector.
Despite the current pullback, investors who believe in quantum computing’s future could see significant rewards if Rigetti can overcome current hurdles and deliver further breakthroughs. As AI and quantum computing continue to evolve, Rigetti’s place in the industry could position the company for growth—but the path ahead remains uncertain.
