Quantum computing stocks like Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and IonQ (IONQ) have been top performers to start 2025, surging as investors and analysts bet on technological breakthroughs in the new year. However, those stocks hit a major roadblock on Wednesday, Jan. 8, causing popular names to plunge between 40% and 50%.
At CES 2025, Nvidia (NVDA) CEO Jensen Huang told analysts that “very useful” quantum computers were roughly 20 years away. That indicates that these red-hot stocks are a long way from commercial success, and therefore meaningful revenues and profits.
Rigetti shares responded promptly, falling 45% to just above $10. This leaves them roughly 50% below their 52-week high of $21.42.
About Rigetti Computing Stock
Rigetti is a California-based company that creates quantum computers and also offers a quantum cloud platform, Forest.
Currently, consumers can order its Novera QPU, a 9-qubit (quantum bit) computer that is a smaller version of its larger, most powerful systems. The company says that Novera can help users achieve “excel” in quantum computing with use cases in scientific experimentation, among other things. A single Novera QPU retails for $900,000 and up.
As I wrote last week, Rigetti reported a drop in revenue and gross profit for the third quarter, and its loss from operations widened. Largely focused on research and development, as well as signing key contracts, Rigetti is dependent on the timing of government funding and deals with other private companies.
What Jensen Huang Had to Say About Quantum Computing Stocks
Huang’s commentary on quantum computing came as part of CES 2025, and more specifically, during a conversation with stock analysts including Evercore ISI analyst Mark Lipacis.
Investors should note that Huang is not sour on the cutting-edge technology. In fact, he said that Nvidia is continuing to invest in research and development related to quantum computing, and that it has partnerships with “just about every quantum computing company.” Rigetti announced an early partnership with Nvidia in 2022 to develop a hybrid GPU-QPU with an intended use for climate modeling. Then, in December 2024, Rigetti announced that it had successfully calibrated a quantum computer that leveraged tech from Nvidia and Quantum Machines.
Nvidia working with Rigetti is a vote of confidence in the up-and-coming company, and Rigetti has had several positive developments to announce to investors.
However, Huang warning that the most useful quantum computers could still be 15-20 years away was the equivalent of dumping a very large bucket of ice water on red-hot RGTI stock.
How Should You Play RGTI Stock Now?
Down 45% in a single trading day, is Rigetti stock now trading at more favorable levels? Or is it time to stay away until the company and the underlying technology can prove itself?
On Wall Street, analysts remain bullish on RGTI, with a consensus “Strong Buy” rating. Four analysts have given it a “Strong Buy,” while one has a “Moderate Buy.”
Up until the drop in share price today, Rigetti has been trading far above its mean price target of $5.20. Its current price near $10 still implies roughly 50% downside over the next year. However, shares are now trading below the Street-high price target of $12.
This leaves invsetors in a bit of a pickle. Analysts are keen on Rigetti, and quantum computing seems poised to dominate investing conversations in the new year. For those willing to take on the risk, RGTI may be a smart buy at its current $10 price. However, those with a more conservative approach may prefer to wait on the sidelines.
