University of Kwazulu-Natal

Rigetti Shares Crashes 45 After Nvidia S Quantum Warning

Bonisiwe Shabane
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rigetti shares crashes 45 after nvidia s quantum warning

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. 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. Rigetti Computing Inc (NASDAQ:RGTI) is trading lower Friday afternoon, marking a reversal after a surge earlier in the week driven by retail momentum and sector-wide optimism. The recent volatility comes amid a classic Santa Rally, where retail investors earlier this week rotated into high-beta quantum stocks while institutional trading desks thin out for the holidays. What To Know: Earlier gains this week were fueled by a wave of social media sentiment focused on Rigetti’s 2026 roadmap, which promises higher-qubit systems and significantly lower error rates. This retail interest was compounded by a halo effect from peers like IonQ and D-Wave, which also saw spikes following strategic milestones and bullish analyst coverage.

Notably, Wedbush recently initiated coverage on Rigetti with an Outperform rating and a $35 price target, citing the company’s advanced chiplets and vertically integrated production capabilities as key differentiators. Market observers note that this week’s price action fits the pattern of a “Holiday Gap,” where lower trading volumes between Dec. 20 and New Year’s allow retail sentiment to move small-cap stocks more aggressively. While retail investors likely drove the stock higher earlier in the week on the belief that the “quantum age” could arrive by 2026, Friday’s downturn suggests a pause in the momentum as the holiday...

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