This week, Rigetti Computing's stock is experiencing a significant decline.
Rigetti Computing's (RGTI [-12.54%]) stock is taking a tumble this week in the trading market. The quantum computing giant has seen a whopping 47.2% drop from its closing price on last Friday, as per S&P Global Market Intelligence's data. With just three trading days under its belt this week due to the President Jimmy Carter memorial day, Rigetti Computing's share price has plummeted due to some bearish sentiments and macroeconomic risks.
Nvidia's CEO casts a pessimistic shadow over Rigetti's future
At a recent meeting for analysts during CES 2025, Nvidia's president, Jensen Huang, shared his thoughts on the quantum computing landscape – and it wasn't good news for Rigetti Computing. Huang hinted that quantum computers may not offer ideal solutions for many computing challenges, and mentioned that the technology might not be commercially viable for several more decades.
Huang said, "If you kind of said 15 years for very useful quantum computers, that'd probably be on the early side. If you said 30 is probably on the late side. But if you picked 20, I think a whole bunch of us would believe it." Although Huang sees potential for quantum computing to boost AI, his optimistic outlook for commercialization over the next decade does not align with many tech investors' expectations.
This negative sentiment from the Nvidia CEO has left Rigetti Computing and other emerging quantum computing companies grappling for footing in an uncertain future. Some industry experts and analysts have projected that commercial quantum computing applications could become viable around 2030. However, if Huang's outlook coincides with reality, it could imply a challenging road ahead for Rigetti Computing and other smaller tech players eager to capitalize on the field's prospects.
Global economic storm clouds gather over Rigetti's stock
Besides the Nvidia CEO's comments, other macroeconomic factors have been contributing to the instability and volatility in the stock market. The most recent Bureau of Labor Statistics survey report revealed an influx of job openings, which some observers view as a potential red flag for inflation. Adding to the market's ongoing turmoil, President-elect Trump has been reportedly mulling the possibility of declaring a national economic emergency, enabling him to impose hefty tariffs on imported goods. The market has also witnessed a pullback in speculative investments in conjunction with rising yields for U.S. Treasury bonds.
In spite of the significant plunge this week, Rigetti Computing's stock has seen overwhelming growth over the last year, rising by a staggering 781%. With a relatively small market presence and a speculative nature, Rigetti Computing's stock is highly susceptible to market volatility and rapid swings in response to bearish macroeconomic news. The unfavorable prognosis from Nvidia's CEO combined with broader market concerns has amplified investor apprehension, leading to a significant pullback in Rigetti Computing's stock price this week.
In light of Nvidia's CEO's skepticism about the commercial viability of quantum computing within the next decade, investors are re-evaluating their finance strategies relating to Rigetti Computing and other emerging quantum computing companies. This uncertainty in the future of quantum computing, coupled with broader market concerns, has resulted in a significant pullback in Rigetti Computing's stock price, as investors seek safer investment opportunities with money.
Given the current bearish sentiments in the market, some investors are cautious about further investing in Rigetti Computing, as they wait to see how the global economic conditions and Nvidia's projections will impact the company's future. With money tied up in more stable investments, it could be challenging for Rigetti Computing to attract new capital and continue its growth trajectory in the finance sector.
