Rigetti Computing (RGTI) saw its stock plummet over 11% in the 24-hour period leading up to Tuesday's close, as concerns over the company's lofty valuation and comments from tech leaders on the timeline for practical quantum computing applications cast doubt on the company's near-term prospects.
Despite touting technological breakthroughs in areas like qubit fidelity and chip fabrication, Rigetti's sky-high valuation of over $5 billion has raised eyebrows among investors, given the company's modest quarterly revenue of $2.4 million and mounting losses. Experts believe that practical applications of quantum computing capable of generating significant revenue are still years away, and Rigetti faces stiff competition from well-funded rivals like IBM and Alphabet.
The stock's plunge was further exacerbated by comments from Nvidia CEO Jensen Huang at CES 2025, who suggested that "very useful quantum computers" are at least 15 years away, and potentially as far as 30 years in the future. These comments, combined with the valuation concerns, have dampened the outlook for Rigetti and other quantum computing companies in the near term.
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