Rigetti Computing Faces Major Stock Decline After Nvidia CEO Comments on Quantum Computing

Shares of Rigetti Computing (NASDAQ: RGTI) nosedived by an alarming 47% on January 8, 2025, after Nvidia CEO Jensen Huang’s comments at CES 2025 cast doubt on the near-term viability of quantum computing. Huang’s assertion that quantum computing is “20 years away from becoming very useful” triggered widespread sell-offs in the sector, with notable declines also hitting rivals D-Wave Quantum (QBTS) and IonQ (IONQ).

Rigetti’s Position in Quantum Computing

Based in California, Rigetti Computing is a leading player in the quantum computing industry, known for its cutting-edge quantum processors and cloud-based services offered through its Forest platform. The company’s flagship product, the Novera QPU, is designed for high-level applications, including scientific research and climate modeling.

Rigetti has strategically partnered with tech giants like Nvidia to advance its offerings, but its financial health remains tied to government funding and substantial R&D investments. With commercial quantum computing still years from profitability, Rigetti’s stock has been inherently volatile.

Technical Analysis: Key Levels for Rigetti Stock

The steep sell-off has left Rigetti’s stock in a precarious position, with key technical levels to monitor:

Support Levels

• $10.00: A critical psychological support level that the stock must hold to prevent deeper losses.
• $11.10: A former support zone that may now act as a resistance level.

Resistance Levels

• $15.44–$16.31: Short-term resistance zone aligning with the 10-day Simple Moving Average (SMA). Breaking above this could hint at recovery.
• $19.32: A significant resistance level matching last week’s high and a potential turning point for renewed bullish sentiment.

Outlook for Rigetti Computing

Despite the sharp downturn, Rigetti retains appeal for investors willing to embrace high-risk, high-reward opportunities. Analysts maintain a “Strong Buy” rating, though the company’s future success hinges on meaningful advancements in quantum computing and solidifying its position in the emerging market.

For the time being, Rigetti must defend the $10.00 support level to stabilize its valuation. If the stock manages to break above the $15.44 resistance, it could signal a reversal of bearish sentiment, albeit requiring sustained effort and innovation to rebuild investor confidence.