Rigetti Computing (RGTI) is finding 2025 challenging so far. Only recently has RGTI been accused of misleading investors, resulting in a more than 13% drop in its stock price over the past five days. The company develops quantum computers that use quantum mechanics to solve problems regular computers can’t handle. These computers combine quantum processors with traditional systems to create powerful hybrid setups. Their cloud service, Forest, lets businesses run quantum algorithms without expensive hardware.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Quantum computing has generated a lot of buzz because it could change fields like cybersecurity and medicine. But making practical quantum computers is taking longer than expected. Investors have eagerly awaited a breakthrough, but the technology is still in its early stages. This has caused big swings in the stock prices of companies like Rigetti as the market goes from high hopes to the reality that commercial quantum computing might be many years away.
A Tough 2025 So Far
It has been a rough start to 2025 for Rigetti. The company has been accused of misleading investors about its progress in quantum technology, hurting its credibility. Adding to the trouble, NVIDIA’s (NVDA) CEO, Jensen Huang, claimed in January that practical quantum computers might be at least 20 years away. This led to a massive drop in Rigetti’s stock by more than 40%. His comments sparked fear among investors that quantum computing is not as close as they had hoped. As mentioned initially, Rigetti’s stock has fallen over 13% in the last five days alone.
On the other hand, Google (GOOGL) claims that it’s only five years away from commercialized quantum computers. In other words, there is also a big battle over the quantum narrative, and the dominant narrative will have a grand impact on quantum stocks.
With these setbacks, Rigetti’s future is uncertain. Can the company handle the challenges of the quantum computing world and survive the rocky ride ahead, or will it struggle to keep up? Only time will tell.
Is RGTI Stock a Good Buy?
Wall Street still considers Rigetti a Strong Buy, with an average price target for RGTI stock of $11. This implies a 10.93% downside potential.
