Rigetti Computing Stock Dives as CEO Sells Stake, Insider Commitment in Question

Rigetti Computing Inc's stock is trading lower, extending a recent downturn, as the broader quantum computing sector cools off. The company's CEO sold his entire 1 million-share stake, raising concern about leadership's conviction. Despite previous positive developments, the focus has shifted to scrutiny over insider commitment and the challenging path to commercial viability. The stock has surged over 5,000% in the past year, but is now approaching overbought territory, leading to increased volatility.

Rigetti Computing Inc's (NASDAQ: RGTI) stock is trading lower, extending a recent downturn, as the broader quantum computing sector cools off. The company's CEO, Subodh Kulkarni, sold his entire 1 million-share stake, raising concern about leadership's conviction. Despite previous positive developments, the focus has shifted to scrutiny over insider commitment and the challenging path to commercial viability. The stock has surged over 5,000% in the past year, but is now approaching overbought territory, leading to increased volatility.

RGTI shares were down 12.94% at $49.05 on Thursday, according to Benzinga Pro data. The stock is trading within its 52-week range of 80 cents to $58.15. Technically, Rigetti's current price is well above both its 50-day and 200-day moving averages, suggesting a robust bullish trend over the longer term. However, the relative strength index (RSI) is at 85.11, signaling that the stock is currently overbought, which could lead to further price corrections in the near term.

The recent pullback comes after a series of positive developments, including contracts with the U.S. Air Force, a partnership with Nvidia, and a bullish price target from Benchmark. However, the sector's momentum has slowed, and company-specific news has introduced headwinds. The stock has surged over 185% in the past month and roughly 127% year-to-date, reaching around $54.91 per share, according to a Blockonomi article. The company has a market cap of approximately $14 billion despite generating only $1.8 million in revenue during Q2 2025.

Rigetti's financials remain challenging, with the company reporting a net loss of $39.7 million for Q2 2025 and a full-year 2024 net loss of $201 million. Gross margin fell to 31% in the latest quarter from 64% a year earlier. Despite the stock gains, analysts' views on valuation are mixed. All six analysts covering Rigetti rate the stock a buy or strong buy, but average 12-month targets sit around $20-24, roughly 50% below current levels, Blockonomi noted.

The latest rally was driven by JPMorgan's $10 billion technology initiative announcement, which includes quantum computing investments. The stock climbed 25% on October 13 following the announcement. Rigetti's recent contract wins, such as $5.7 million in orders for Novera quantum computers and a $5.8 million Air Force contract for quantum networking, have also fueled momentum, Blockonomi reported.

Despite the challenges, Rigetti's strategic partnerships and technological advancements continue to expand its reach. Taiwanese electronics giant Quanta Computer invested $35 million in Rigetti, and the company has signed a memorandum of understanding with India's C-DAC to develop hybrid quantum-classical computing systems, Blockonomi added.