Rigetti Computing (RGTI) stock plunged 5.3% in the 24-hour period ending on Sunday, January 26, 2025, underperforming the broader market. The decline came amidst concerns over the company's uncertain earnings prospects and the broader sell-off in quantum computing and related sectors.

Jim Cramer, a prominent financial analyst, advised investors to stay away from Rigetti Computing stock, stating, "A Quantum company that was less than a dollar two months ago, they tried to gun it up early in the morning between 4:00 and 5:00. They took it up higher, and now they are wearing it. Please be careful not to take stocks up between four and five because they're real sellers when the market opens. This is a Quantum Computing company that I, I don't know when it'll ever earnings, but boy, is it ever in the face of what Jensen Huang, whose's owned stock is not doing well today. I don't want to be in Rigetti Computing, Inc. (NASDAQ:RGTI)."

Rigetti Computing's stock price decline was also influenced by broader market concerns surrounding China's AI progress. Reports emerged that DeepSeek, a Chinese AI lab, released a powerful AI model that it claims was built for just $6 million using less-powerful chips. This development raised concerns about the potential impact on demand for expensive AI chips and related hardware, leading to a sell-off in chip stocks, quantum computing stocks, and other related sectors.