Rigetti Computing (RGTI) shares plummeted 9.24% in after-hours trading on Tuesday, as concerns over the company's lofty valuation overshadowed its recent technological breakthroughs in the quantum computing space.
Despite achieving notable progress in areas such as qubit fidelity and chip fabrication techniques, Rigetti's sky-high valuation of over $5 billion raised eyebrows among investors. With modest quarterly revenue of $2.4 million and mounting losses, the current valuation appears to have priced in substantial future success in the highly competitive quantum computing market.
While Rigetti's modular chip architecture and partnerships with tech giants like Amazon and Microsoft provide potential pathways for commercialization, experts believe that practical applications of quantum computing capable of generating significant revenue are still years away. The company faces stiff competition from well-funded rivals like IBM and Alphabet, which possess vastly superior resources in this emerging field.
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