Rigetti Computing Inc. (NASDAQ:RGTI) shares tumbled 10% on Thursday, March 20, even as Nvidia (NASDAQ:NVDA) hosted its inaugural “Quantum Day”, showcasing the growing interest in quantum technology. Despite the event’s industry spotlight, investors dumped RGTI stock, seemingly wary of its shaky fundamentals and recent financial struggles.
Nvidia CEO’s Remarks Spark Quantum Selloff
The decline comes in the wake of Nvidia CEO Jensen Huang’s prior comments that triggered a broad selloff in quantum computing stocks. Huang’s stance—highlighting the long road to commercialization—spooked investors, casting doubt on the near-term viability of companies like Rigetti.
Weak Financials Weigh on RGTI
Even with Thursday’s decline, RGTI stock remains up over 50% from its year-to-date low, though the recent rally was not supported by encouraging fundamentals.
- Q4 financial results were disappointing, with net losses surging to $153 million, compared to $12.6 million in the same quarter last year.
- Revenue plunged 32% YoY to $2.3 million, falling short of expectations.
- Despite its market cap of approximately $2.8 billion, Rigetti’s 2025 projected revenue stands at just $14 million, raising concerns over its rich valuation.
Quantum Supremacy Still Out of Reach
Unlike D-Wave Quantum Inc. (NYSE:QBTS), which has achieved quantum supremacy—demonstrating a quantum processor outperforming classical computers—Rigetti has yet to reach this milestone. This makes it a riskier bet in an already speculative sector.
Wall Street Remains Optimistic
While concerns over RGTI’s fundamentals linger, Wall Street analysts remain bullish. The stock holds a consensus “Strong Buy” rating, with a mean price target of $14.80, suggesting over 60% upside from current levels.
Outlook: Caution Amid the Hype
Although Nvidia’s “Quantum Day” placed a spotlight on the potential of quantum computing, Rigetti’s weak financials and lack of technological leadership continue to weigh on its outlook. Investors should remain cautious, as quantum commercialization is still years away, and Rigetti faces stiff competition from more advanced peers.
