Quantum Computing and Rigetti Computing shares both rise over 20%

Quantum Computing and Rigetti Computing shares both rise over 20%

Quantum computing, an emerging technology with the potential to revolutionize industries from pharmaceuticals to finance, has been the subject of intense investor interest in recent months. Two notable players in the field, Rigetti Computing and Quantum Computing Inc. (QCI), have experienced significant share price increases, with Rigetti's stock rising by over 20% [1].

This surge in interest can be attributed to a combination of factors. First, the broader market environment has been favorable to growth-oriented stocks, with the NASDAQ reaching new highs and the Federal Reserve maintaining a relatively accommodative stance [1]. Furthermore, the hype surrounding artificial intelligence (AI) and other cutting-edge technologies has spilled over into the quantum computing sector, leading some investors to view these stocks as the "next big thing" [1].

However, it is essential to approach the quantum computing stock market with caution. As noted by financial analyst Drew Burlet, the industry is still in its infancy, with most companies focusing on research and development rather than generating significant revenue [1]. Moreover, many of the valuations in the sector are sky-high, with some stocks trading at forward price-to-sales (P/S) multiples in the hundreds [1].

Rigetti Computing, for instance, has a forward P/S ratio of over 1,000 [1]. While the company has made significant progress in developing its quantum computers and has secured several partnerships with major tech companies, it is still unclear when the technology will become widely used and profitable [1].

Furthermore, the risks associated with investing in quantum computing stocks are similar to those faced by investors in other speculative technologies. If the broader market were to turn sour, or if inflation were to resurge, these stocks could experience significant declines [1].

In conclusion, while the surge in interest in Rigetti Computing and other quantum computing stocks is understandable, investors should approach the market with caution. The technology is still in its infancy, and the valuations in the sector are high, making it essential to carefully consider the risks before investing.

References:
[1] Burlet, D. (2022, October 12). 4 Overvalued Quantum Computing Stocks: QUBT, QBTS, RGTi, IONQ - Short Strategy 2025. Retrieved October 20, 2022, from https://www.asapdrew.com/p/4-overvalued-quantum-computing-stocks-qubt-qbts-rgti-ionq-short-strategy-2025