Rigetti Computing Stock News

Quantum computing pure-play stocks have been on fire this year, with one estimate projecting that this technology can create up to $850 billion in global economic value by 2040. Insiders at Wall Street's high-flying quantum computing stocks are sounding a warning that investors would be wise not to ignore.

Quantum stocks seem to be rallying based on industry optimism instead of company-specific advantages. Rigetti stock remains highly speculative.

Some investors on Wall Street worry that artificial intelligence (AI) stocks have become too expensive. While technology stocks generally have become frothy, I think quantum computing is the tech segment most at risk of a steep correction.

Ken Griffin bought small positions in Rigetti Computing and D-Wave Quantum in the third quarter; every Wall Street analyst following the companies sees upside in the stocks. Rigetti has differentiated itself through vertical integration and multi-chip architecture, but its valuation is 10 times higher than the most expensive stock in the S&P 500.

These three small-cap companies are at the forefront of autonomous drones, sidewalk robotics, and quantum computing. All three are posting triple-digit revenue growth while burning cash and trading at speculative valuations.

Rigetti Computing shares have advanced 2,750% since January 2024, but every Wall Street analyst who follows the company still expects upside in the stock. Rigetti benefits from vertical integration, and it was the first company to develop a multichip quantum processor, but its technology will not be widely useful for a decade or more.

Like many quantum computing stocks, Rigetti Computing has pulled back sharply after a massive 12-month rally. Should investors buy the dip or wait for more downside?

Shares of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have respectively rallied by up 684% over the trailing year. Some Wall Street analysts foresee quantum computing pure-play stocks surging by 113% to 264% in the new year.