Quantum Computing Stocks Experience Significant Decline Amid Risk-Off Sentiment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy RGTI?
Source: seekingalpha
- Market Sentiment Shift: Quantum computing stocks experienced broad mid-to-high single-digit losses on Thursday, reflecting a heightened risk-off sentiment in speculative tech, which has led to decreased investor confidence and increased market volatility.
- Poor Year-to-Date Performance: Year-to-date, most stocks in the quantum computing sector have declined by double digits, indicating ongoing pressure on the industry, particularly against a backdrop of elevated bearish positioning that has made investors cautious about future prospects.
- Short Interest Pressure: As of January 30, short interest rates reveal significant bearish sentiment, with Quantum Computing (QUBT) at 21.89% and IonQ (IONQ) at 20.80%, suggesting a lack of confidence in these companies and potential for further price declines.
- ETF Performance Analysis: The quantum computing ETF (Defiance Quantum ETF, QTUM) has also been affected, and the deteriorating market environment may impact investor decisions regarding long-term investments in the quantum computing sector, increasing uncertainty within the industry.
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Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 16.430
Low
30.00
Averages
39.75
High
51.00
Current: 16.430
Low
30.00
Averages
39.75
High
51.00
About RGTI
Rigetti Computing, Inc. is a full-stack quantum computing company. The Company operates quantum computers over the cloud and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. It has developed a multi-chip quantum processor for scalable quantum computing systems. Through the Company’s Quantum Computing as a Service (QCaaS) platform, its machines can be integrated into any public, private or hybrid cloud. It is also engaged in the sale of quantum processing units (QPUs) and custom computing components, and development contracts and other services. Its QPUs contain fabricated silicon-based chips featuring superconducting qubits. The Company designs and manufactures its chips in-house at Fab-1, an integrated quantum device manufacturing facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quantum Computing Stocks Experience Significant Decline Amid Risk-Off Sentiment
- Market Sentiment Shift: Quantum computing stocks experienced broad mid-to-high single-digit losses on Thursday, reflecting a heightened risk-off sentiment in speculative tech, which has led to decreased investor confidence and increased market volatility.
- Poor Year-to-Date Performance: Year-to-date, most stocks in the quantum computing sector have declined by double digits, indicating ongoing pressure on the industry, particularly against a backdrop of elevated bearish positioning that has made investors cautious about future prospects.
- Short Interest Pressure: As of January 30, short interest rates reveal significant bearish sentiment, with Quantum Computing (QUBT) at 21.89% and IonQ (IONQ) at 20.80%, suggesting a lack of confidence in these companies and potential for further price declines.
- ETF Performance Analysis: The quantum computing ETF (Defiance Quantum ETF, QTUM) has also been affected, and the deteriorating market environment may impact investor decisions regarding long-term investments in the quantum computing sector, increasing uncertainty within the industry.
See More
Quantum Computing Stocks Face Major Risks Amidst Opportunities
- Market Potential: Quantum computing is projected to create between $450 billion and $850 billion in global economic value by 2040, offering substantial return potential for investors despite being significantly smaller than the trillion-dollar AI market.
- Stock Price Surge: As of October 2025, shares of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have skyrocketed by 670%, 6,217%, 3,912%, and 2,798% respectively over the past 12 months, reflecting strong market confidence in quantum computing.
- Significant Financing Risks: These four quantum computing companies collectively issued over $4.1 billion in common stock and warrants in 2025 to raise capital, indicating their unproven operating models and posing dilution risks for existing shareholders.
- Increased Competitive Pressure: With major players like Amazon and Microsoft ramping up investments in quantum computing, the low barriers to entry could threaten the market position of pure-play quantum companies, potentially leading to their obsolescence as the technology matures.
See More
Quantum Computing Stocks Surge Up to 6,200% Over the Past Year
- Quantum Stock Performance: As of mid-October, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. surged by up to 6,200% over the past year, reflecting strong investor confidence and robust market demand for this nascent technology.
- Market Potential Analysis: According to a forecast by Boston Consulting Group, quantum computing could generate between $450 billion and $850 billion in global economic value by 2040, attracting significant investor interest despite its smaller market size compared to artificial intelligence.
- Risks and Challenges: While quantum computing stocks present substantial return potential, they face risks such as share dilution and slow commercialization; collectively, these four companies issued over $4.1 billion in common stock and warrants in 2025 to raise capital, which could negatively impact existing shareholders.
- Competitive Pressure: With the
See More
Rigetti Computing Shares Decline Amid Tech Selloff
- Short Interest Increase: Rigetti Computing's short interest rose from 43.24 million shares to 45.46 million shares, representing 13.84% of the company's publicly available shares, indicating market concerns about its future performance and potential for further price declines.
- Technical Weakness: The stock is currently trading 27.2% below its 20-day simple moving average and 48.7% below its 100-day SMA, demonstrating a bearish trend in the short to medium term, which suggests investors should exercise caution.
- Improved Earnings Outlook: The upcoming earnings report on March 4, 2026, is expected to show an EPS loss of 4 cents, an improvement from an 8-cent loss year-over-year, with revenue estimates at $2.46 million, up from $2.27 million last year, potentially providing price support.
- Analyst Optimism: Despite the stock's decline, Rigetti Computing maintains a 'Buy' rating with an average price target of $25.91, with recent upgrades from analysts like B. Riley Securities and Wedbush, reflecting confidence in its long-term potential.
See More
Analysis of Rigetti Quantum Computing Stock Outlook
- Market Performance Review: Rigetti Computing's stock has risen by 17.96% over the past year, yet it is currently trading over 60% below its 2025 peak, indicating investor concerns about its future prospects and the need for careful risk assessment.
- Technical Competition Analysis: Rigetti's 108-qubit system boasts impressive gate speeds of 50-70 nanoseconds; however, its median two-qubit gate fidelity of 99% lags behind competitors like IonQ, which achieves 99.99%, highlighting the urgent need for technological improvements.
- Future Development Goals: Rigetti aims to develop a 1,000-qubit system by 2027 with a target fidelity of 99.7%, but this still falls short compared to IonQ's ambitions, and the commercial viability threshold remains at 1 million qubits and 99.99% fidelity.
- Investor Recommendations: While the quantum computing market is projected to reach $72 billion by 2030, Rigetti could become a significant player if it captures market share; however, due to its speculative nature, investors are advised to adopt a small stake strategy to mitigate risks.
See More
Rigetti Quantum Computing Faces Significant Challenges
- Intensifying Market Competition: Rigetti Computing is competing in the quantum computing space against tech giants like Google and IBM, with its 108-qubit system achieving gate speeds of 50-70 nanoseconds but only 99% accuracy, significantly lower than rival IonQ's 99.99%, threatening its market competitiveness.
- Future Development Goals: Rigetti aims to develop a system with 1,000 qubits by 2027, targeting 99.7% two-qubit gate fidelity; however, this appears conservative compared to IonQ's ambition to achieve 10,000 qubits in the same timeframe.
- Investment Risk Warning: Despite the quantum computing market being projected to reach $72 billion by 2030, Rigetti's stock has fallen over 60% from its 2025 peak, and it has given back all gains made in 2026, indicating high investment risk suitable only for risk-tolerant investors.
- Uncertain Market Outlook: If Rigetti can achieve large-scale quantum computing in the future, it may secure a position in the rapidly evolving quantum computing market, but there is currently no clear path or timeline, necessitating cautious evaluation of potential returns against risks for investors.
See More
Quantum Computing Stocks Experience Significant Decline Amid Risk-Off Sentiment
- Market Sentiment Shift: Quantum computing stocks experienced broad mid-to-high single-digit losses on Thursday, reflecting a heightened risk-off sentiment in speculative tech, which has led to decreased investor confidence and increased market volatility.
- Poor Year-to-Date Performance: Year-to-date, most stocks in the quantum computing sector have declined by double digits, indicating ongoing pressure on the industry, particularly against a backdrop of elevated bearish positioning that has made investors cautious about future prospects.
- Short Interest Pressure: As of January 30, short interest rates reveal significant bearish sentiment, with Quantum Computing (QUBT) at 21.89% and IonQ (IONQ) at 20.80%, suggesting a lack of confidence in these companies and potential for further price declines.
- ETF Performance Analysis: The quantum computing ETF (Defiance Quantum ETF, QTUM) has also been affected, and the deteriorating market environment may impact investor decisions regarding long-term investments in the quantum computing sector, increasing uncertainty within the industry.
See More
Quantum Computing Stocks Face Major Risks Amidst Opportunities
- Market Potential: Quantum computing is projected to create between $450 billion and $850 billion in global economic value by 2040, offering substantial return potential for investors despite being significantly smaller than the trillion-dollar AI market.
- Stock Price Surge: As of October 2025, shares of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have skyrocketed by 670%, 6,217%, 3,912%, and 2,798% respectively over the past 12 months, reflecting strong market confidence in quantum computing.
- Significant Financing Risks: These four quantum computing companies collectively issued over $4.1 billion in common stock and warrants in 2025 to raise capital, indicating their unproven operating models and posing dilution risks for existing shareholders.
- Increased Competitive Pressure: With major players like Amazon and Microsoft ramping up investments in quantum computing, the low barriers to entry could threaten the market position of pure-play quantum companies, potentially leading to their obsolescence as the technology matures.
See More
Quantum Computing Stocks Surge Up to 6,200% Over the Past Year
- Quantum Stock Performance: As of mid-October, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. surged by up to 6,200% over the past year, reflecting strong investor confidence and robust market demand for this nascent technology.
- Market Potential Analysis: According to a forecast by Boston Consulting Group, quantum computing could generate between $450 billion and $850 billion in global economic value by 2040, attracting significant investor interest despite its smaller market size compared to artificial intelligence.
- Risks and Challenges: While quantum computing stocks present substantial return potential, they face risks such as share dilution and slow commercialization; collectively, these four companies issued over $4.1 billion in common stock and warrants in 2025 to raise capital, which could negatively impact existing shareholders.
- Competitive Pressure: With the
See More
Rigetti Computing Shares Decline Amid Tech Selloff
- Short Interest Increase: Rigetti Computing's short interest rose from 43.24 million shares to 45.46 million shares, representing 13.84% of the company's publicly available shares, indicating market concerns about its future performance and potential for further price declines.
- Technical Weakness: The stock is currently trading 27.2% below its 20-day simple moving average and 48.7% below its 100-day SMA, demonstrating a bearish trend in the short to medium term, which suggests investors should exercise caution.
- Improved Earnings Outlook: The upcoming earnings report on March 4, 2026, is expected to show an EPS loss of 4 cents, an improvement from an 8-cent loss year-over-year, with revenue estimates at $2.46 million, up from $2.27 million last year, potentially providing price support.
- Analyst Optimism: Despite the stock's decline, Rigetti Computing maintains a 'Buy' rating with an average price target of $25.91, with recent upgrades from analysts like B. Riley Securities and Wedbush, reflecting confidence in its long-term potential.
See More
Analysis of Rigetti Quantum Computing Stock Outlook
- Market Performance Review: Rigetti Computing's stock has risen by 17.96% over the past year, yet it is currently trading over 60% below its 2025 peak, indicating investor concerns about its future prospects and the need for careful risk assessment.
- Technical Competition Analysis: Rigetti's 108-qubit system boasts impressive gate speeds of 50-70 nanoseconds; however, its median two-qubit gate fidelity of 99% lags behind competitors like IonQ, which achieves 99.99%, highlighting the urgent need for technological improvements.
- Future Development Goals: Rigetti aims to develop a 1,000-qubit system by 2027 with a target fidelity of 99.7%, but this still falls short compared to IonQ's ambitions, and the commercial viability threshold remains at 1 million qubits and 99.99% fidelity.
- Investor Recommendations: While the quantum computing market is projected to reach $72 billion by 2030, Rigetti could become a significant player if it captures market share; however, due to its speculative nature, investors are advised to adopt a small stake strategy to mitigate risks.
See More
Rigetti Quantum Computing Faces Significant Challenges
- Intensifying Market Competition: Rigetti Computing is competing in the quantum computing space against tech giants like Google and IBM, with its 108-qubit system achieving gate speeds of 50-70 nanoseconds but only 99% accuracy, significantly lower than rival IonQ's 99.99%, threatening its market competitiveness.
- Future Development Goals: Rigetti aims to develop a system with 1,000 qubits by 2027, targeting 99.7% two-qubit gate fidelity; however, this appears conservative compared to IonQ's ambition to achieve 10,000 qubits in the same timeframe.
- Investment Risk Warning: Despite the quantum computing market being projected to reach $72 billion by 2030, Rigetti's stock has fallen over 60% from its 2025 peak, and it has given back all gains made in 2026, indicating high investment risk suitable only for risk-tolerant investors.
- Uncertain Market Outlook: If Rigetti can achieve large-scale quantum computing in the future, it may secure a position in the rapidly evolving quantum computing market, but there is currently no clear path or timeline, necessitating cautious evaluation of potential returns against risks for investors.
See More
