What Happened
Rigetti Computing's stock has plummeted by over 35% since reaching its all-time high in October 2025, raising questions about whether investors should consider it a buy right now. The rapid decline follows a broader downturn in the technology sector, particularly among companies tied to advanced computing and artificial intelligence. This sell-off is attributed to a combination of profit-taking by investors, concerns over rising interest rates, and a lackluster earnings report that failed to meet market expectations.
Rigetti Computing, a key player in the quantum computing space, was once seen as a promising investment due to its innovative technology and partnerships within the tech ecosystem. However, as the euphoria surrounding quantum advancements has tempered, the stock has struggled to maintain its momentum. The backdrop of increasing competition in the quantum computing field, alongside macroeconomic factors, has led to this significant downward movement in Rigetti's stock price.
Why It Matters
The steep drop in Rigetti Computing's stock is indicative of broader market sentiment, where investors are increasingly cautious about tech stocks, especially those in emerging sectors like quantum computing. This caution stems from the realization that many companies in this space, including Rigetti, might not yet be profitable or robust enough to withstand economic pressures, particularly as interest rates rise.
Moreover, the connection between Rigetti and major tech players like NVIDIA (NVDA) highlights the ripple effects across the sector. NVIDIA's performance directly influences investor sentiment in quantum computing, as it is a leading supplier of chips essential for AI and advanced computing tasks. A lackluster performance from NVIDIA could further depress Rigetti Computing’s outlook, as investors reassess their positions in related stocks.
Additionally, the decline in Rigetti's stock might reflect a critical psychological threshold for investors. As the stock falls further from its peak, it may trigger additional selling, especially among those who see the stock's previous highs as unattainable in the near term. Understanding this psychological dynamic is crucial for grasping the current market landscape.