Rigetti Computing Stock Plummets: Nvidia CEO's Comments Spark Sell-Off

Rigetti Computing (RGTI) stock has been on a rollercoaster ride this week, with shares plummeting by 47.2% from last Friday's market close as of Wednesday. The company's share price has seen a massive pullback due to bearish comments from Nvidia president Jensen Huang and macroeconomic risk factors. Huang's remarks at this year's CES event have crushed Rigetti stock and other specialists in the quantum computing category.



Huang stated that practical quantum computers are still 15 to 30 years away, with 20 years being a more realistic estimate. He also poured cold water on hopes that the technology would be ready for commercial use anytime soon. Huang believes that while quantum computing could ultimately push artificial intelligence forward, its commercialization over the next decade is far more bearish than many investors would like. Some quantum experts and industry watchers have theorized that commercially useful quantum computing applications could start to arrive sometime around 2030. However, if Huang's outlook is closer to correct, it paints a dim picture for Rigetti and other relatively small tech players aiming to score big wins in the emerging tech category.



Macroeconomic dynamics have also added to Rigetti stock's woes this week. The latest survey from the Bureau of Labor Statistics showed more job openings than anticipated, which has been interpreted as a potentially bearish indicator for inflation. Adding another source of volatility, President-elect Trump is reportedly considering declaring a national economic emergency once he takes office in order to quickly introduce high tariffs on imported goods. Speculative stocks, like Rigetti, are particularly sensitive to such geopolitical risks. Rising yields for U.S. Treasury bonds have also made alternative investments, such as Rigetti's stock, less attractive to investors, leading to a pullback in speculative stocks.

Despite the stock seeing dramatic sell-offs this week, Rigetti's share price is still up 781% over the last year. As a relatively small company with a speculative outlook in an emerging industry, Rigetti stock is predisposed to see big swings in conjunction with bearish macroeconomic news. With Nvidia's CEO also serving up a concerning forecast for the usefulness of quantum computing technologies, it's not surprising that Rigetti stock has seen a big pullback this week.

Investors should weigh the potential upside of Rigetti's growth against the inherent risks of investing in a company still grappling with financial losses and uncertainty in the application of its technology. As the market matures, those with a long-term vision and a high tolerance for risk may find Rigetti a compelling option, but for others, caution is advised.