University of Kwazulu-Natal

Rigetti Computing Stock Plummets 45 Following Nvidia S Quantum Warning

Bonisiwe Shabane
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rigetti computing stock plummets 45 following nvidia s quantum warning

Rigetti Computing (NASDAQ: RGTI), a quantum computing company, saw its stock plunge 45% on Wednesday, January 8. This move came after the Nvidia CEO – Jensen Huang – stated that useful quantum computing is still 20 years away. The decline was seen across quantum computing stocks, with IONQ falling 39%, and D-Wave falling 36%. It is a known fact that quantum computing remains in a developmental stage and is not yet ready for widespread practical implementation across industries. The timeline for mainstream adoption of these systems remains uncertain — it could materialize within the next ten years, or potentially take longer to achieve. However, the fall in these stocks seems exorbitant.

As with any new futuristic technology, things may be volatile at times. That said, if you want upside with a smoother ride than an individual stock, consider the High-Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception. Rigetti is a leading player in the emerging quantum computing ecosystem. It has developed a quantum processing unit (QPU) called Novera with 9 qubits, designed for local deployment. It offers a Quantum Computing as a Service (QCaaS) platform that enables their quantum systems to be seamlessly integrated across various cloud environments. Rigetti Computing has expanded its quantum computing lineup with the introduction of its Ankaa-3 system, featuring 84 qubits and enhanced precision through upgraded hardware components and sophisticated capabilities.

Looking ahead, Rigetti’s 2025 roadmap includes two new quantum systems: a 36-qubit model and an advanced system exceeding 100 qubits, both engineered with a focus on improved reliability, targeting a 2x reduction in error... These developments represent significant steps toward making quantum computing technology more viable for practical applications. Notably, there have been some advancements lately with Google’s Willow chip and Amazon’s Quantum Embark in the quantum space. This has fueled the rally in the quantum stocks at large, including RGTI stock. Furthermore, a $2.7 billion government funding for quantum computing has boded well for these stocks. We continue to believe that Rigetti is favorably placed in the quantum space, and the recent dip offers an opportunity for investors to pick RGTI for robust long-term gains.

That said, investors should take into account the risks. RGTI stock is a high-risk high-growth potential story, with various factors at play, including technological improvements and costs. As an investor, the bet will be on the future potential of quantum computing and Rigetti’s place in it. 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. The entire Quantum Computing stock industry took a massive hit on Wednesday as NVIDIA CEO, Jensen Huang, made comments about the industry during the company’s investor day.

Juang commented that “If you said 15 years for very useful quantum computers, that would probably be on the early side,”. Juang followed-up with “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.” Quantum computing has taken the lead role, in terms of performance, from Ai industry stocks over the last two months since Google announced the development of its “Willow” chip. The Willow chip demonstrates that quantum computers can solve specific problems much faster than classical supercomputers. Google announced that Willow performed a standard benchmark computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion years.

Google is the strongest candidate for quantum computing hardware breakthroughs over the next 5 years. 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.

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