Rigetti Computing Stock Falls Despite Nvidia Quantum Day. Should You Buy the Dip?

Rigetti Computing (RGTI) is down about 10% on Thursday, March 20 despite Nvidia’s (NVDA) first-ever “Quantum Day” taking place. 

Investors are bailing on RGTI since Nvidia CEO Jensen Huang previously made a comment that triggered a sharp selloff in quantum computing stocks. 

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However, even if Huang’s discussion with industry experts at the “Quantum Day” proves positive for Rigetti Computing stock on Thursday, there’s reason to pull out of it on the strength. 

The Risk Associated With Owning Rigetti Computing Stock

Even with today’s decline, RGTI shares are already up more than 50% versus their year-to-date low – and that’s when its Q4 financial results earlier this month were broadly disappointing. 

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Rigetti Computing saw its net loss widen sharply to $153 million in the fourth quarter from $12.6 million only in the same quarter last year. 

At $2.3 million, the quantum computing company reported a worse-than-expected year-over-year decline of more than 32% in its revenue. 

RGTI’s Valuation Looks Disconnected from the Fundamentals

Nvidia’s first-ever “Quantum Day” may eventually see RGTI stock rally into the end of this week, but the related gains will likely prove short-lived. 

That’s because “true commercialization” is still years away, which is why analysts believe Rigetti Computing will be able to generate $14 million in sales only in 2025. 

When you compare that number to the company’s market cap of about $2.8 billion, its valuation already starts to look disconnected from its fundamentals. 

Plus, RGTI has not even achieved “quantum supremacy” like rival D-Wave (QBTS) yet. So, even if you want exposure to quantum computing, there are better names to own than Rigetti Computing stock. 

Wall Street Remains Bullish on Rigetti Computing Shares

On the flip side, investors should note that Wall Street remains bullish on Rigetti Computing shares.

The consensus “Strong Buy” rating on RGTI stock is tied to a mean target of $14.80 at the time of writing that indicates potential upside of more than 60% from current levels. 

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.