Rigetti Computing (RGTI) stock soared 5.25% to $12.24 during Friday's intraday trading, rebounding from a steep decline earlier in the week.
The rally can be attributed to a shift in investor sentiment regarding the near-term prospects of the quantum computing industry. Following comments from Nvidia CEO Jensen Huang, who cautioned that widespread adoption and commercial viability of quantum computing are still likely 20 years away, expectations were reset to more realistic levels. This served to alleviate some of the overexuberance that had inflated valuations in the sector.
Additionally, Rigetti's stock received a boost from the company's earnings outlook. Analysts expect the quantum computing firm to post a narrower loss of $0.08 per share for the current quarter, representing an improvement of 11.1% from the prior year. While still unprofitable, the projected earnings trajectory suggests Rigetti is making progress in its path towards profitability.
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