How Nvidia S Ces Remarks Caused Rigetti S 45 Stock Plunge

Bonisiwe Shabane

-Jan 2, 2026, 4:28 AM

how nvidia s ces remarks caused rigetti s 45 stock plunge

Nvidia CEO Jensen Huang recently predicted it could take 15 to 30 years to bring "very useful quantum computers" to the market. He said those systems would require a million more quantum bits (qubits) than they have today. Huang's cautious comments caused two of the market's most popular quantum computing stocks, IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI), to plunge 39% and 45%, respectively, on Jan. 8. Let's see why that happened -- and if IonQ and Rigetti are still worth buying after their precipitous declines. Where to invest $1,000 right now?

Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks » Traditional computers store their data in binary bits of zeros and ones. Quantum processing units (QPUs) can store zeros and ones simultaneously in qubits, which enables them to process data much faster than traditional computers. But quantum computers are much larger and pricier than their binary counterparts, and they tend to produce more errors with their rapid fire calculations. That's why they're still mainly used by universities, research institutions, and government agencies for niche calculations instead of more practical applications for mainstream businesses.

Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement Rigetti Computing (NASDAQ: RGTI), one of the most talked-about quantum computing stocks, suffered a dramatic plunge today. Shares fell over 47.60%, wiping out significant recent gains, following comments from Nvidia CEO Jensen Huang. During Nvidia’s analyst day, Huang cast doubt on the near-term utility of quantum computing, suggesting that “very useful” systems might be two decades away. This sudden pullback comes as a reality check for Rigetti, which had soared over 1,500% in the past year.

Investors are now questioning whether the stock can regain its momentum or if the hype around quantum computing is fizzling out. Looking at the chart, Rigetti Computing is currently trading at $9.65, down from its recent high of $21.39. This represents a significant decline of approximately 55% from its peak. Despite today’s sharp decline, Rigetti’s long-term prospects remain tied to the future of quantum computing. While Nvidia’s CEO provided a sobering outlook, Rigetti has positioned itself as a leader in the space, benefiting from recent advancements and partnerships. However, the road ahead is challenging.

Investors must weigh the stock’s speculative nature against its potential. For now, Rigetti’s ability to hold critical support levels and deliver tangible progress in its quantum technology will be the deciding factors in its 2025 outlook. After losing $8.3 in one trading session, Rigetti Computing's (RGTI, Financial) share price dropped by 45%, following Comments by Nvidia (NVDA, Financial) CEO Jensen Huang at CES 2025, warning that practical quantum computing maybe... His remarks triggered a sell-off in the quantum computing industry that crushed the stock of Rigetti and peers, including IonQ. Rigetti shares traded slightly higher in after-hours, rising 2.8% to $10.33. However, analysts remain doubtful about the stock's prospects.

Speculative interest lifted Rigetti to a record high of $19.38 earlier this month. However, fears of overvaluation and the company's continuing revenue woes have remained. Forbes set Rigetti's 12-month price target to $5.20, suggesting another 49.1% downside from that date. Further complicating investor concerns has been increased cash burn and the broader market volatility. Over the last year, volatility in its quantum computing stocks has grown from 22% to 35% a week. We see Rigetti's short interest ratio at 0.6, indicating modestly bearish sentiment in a calm trading market.

Both the long term potential and the near term risks of quantum computing are illustrated by the sharp decline. Investors are suggested to take the smart approach of keeping a close watchful eye on Rigetti's fundamentals and operational performance while they go through these challenges. Nvidia CEO Jensen Huang speaks during the launch of the supercomputer Gefion at Vilhelm Lauritzen Terminal in Kastrup, Denmark, Oct. 23, 2024. Quantum computing stocks dropped Wednesday after Nvidia CEO Jensen Huang declared that useful quantum computers are many years away. "If you said 15 years for very useful quantum computers, that would probably be on the early side," he said during Nvidia's analyst day.

"If you said 30, it's probably on the late side. But if you picked 20, I think a whole bunch of us would believe it." Stream NBC 5 for free, 24/7, wherever you are. Huang said he believes Nvidia will play a "very significant part" in creating the computers and helping the industry "get there as fast as possible."

How Nvidia S Ces Remarks Caused Rigetti S 45 Stock Plunge

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