Quantum Computing Stocks Take a Hit: Rigetti Downgraded to 'Sell' and D-Wave Drops Amid Competition

Rigetti Computing's shares dropped 9.4% after Zacks Research issued a "Sell" rating, citing disappointing Q1 results and a cloudy outlook. D-Wave Quantum fell 10.4% amid concerns that Google and IBM's advancements may threaten its edge in quantum computing. Both stocks are highly volatile, reflecting the early-stage nature of quantum tech and growing competition among players.

Quantum computing stocks have been experiencing significant volatility, with Rigetti Computing, Inc. (NASDAQ: RGTI) and D-Wave Quantum Inc. (QBTS) both seeing substantial drops in their share prices. Rigetti Computing's shares dropped by 9.44% week-on-week, while D-Wave Quantum's shares fell by 10.4% over the past 30 days.

Rigetti Computing's decline was primarily driven by a "sell" rating issued by Zacks Research [1]. The research firm cited disappointing Q1 results, with revenues of $1.47 million representing a year-over-year change of -51.8%, and EPS of -$0.08, which was a surprise of -60% compared to the Zacks Consensus Estimate. Rigetti Computing has also struggled to meet revenue estimates consistently over the past four quarters.

D-Wave Quantum, on the other hand, has been facing intensifying headwinds from tech giants IBM and Alphabet (GOOGL) [2]. Both companies are aggressively scaling up their quantum computing roadmaps, which may threaten D-Wave's edge in the niche market of optimization tasks. While D-Wave reported a 509% year-over-year revenue surge in Q1 2025, its stock has been trading more than 20% below its all-time high, reflecting investor caution.

The volatility in these stocks is reflective of the early-stage nature of quantum technology and the growing competition among players. Rigetti Computing and D-Wave Quantum are both trading at premiums to their peers, with Rigetti Computing returning 21.5% over the past month and D-Wave trading at a forward 12-month price-to-sales of 144.4X.

Investors should closely monitor the developments in quantum computing, as the technology holds significant promise for various industries. However, the early-stage nature and intense competition make these stocks highly volatile and risky. As such, investors should approach these stocks with caution and a long-term perspective.

References:
[1] https://finance.yahoo.com/news/rigetti-rgti-computing-declines-9-190751409.html
[2] https://www.nasdaq.com/articles/d-wave-slips-ibm-and-google-threaten-its-quantum-edge-what-now