Rigetti Computing (RGTI) Plunges 10.59% on 52% Revenue Drop, Sector Volatility Amid AI Shift

Rigetti Computing (RGTI) plunged 10.59% intraday on September 22, 2025, marking its lowest level since September 2025, despite recent analyst upgrades and government contract wins. The stock’s sharp decline underscores the volatile nature of the quantum computing sector, where optimism about long-term potential often clashes with immediate financial challenges.

Recent developments have highlighted Rigetti’s strategic role in advancing quantum infrastructure. A $5.8 million Air Force Research Lab contract to develop superconducting quantum networking has reinforced its position as a key player in defense-related quantum innovation. However, the company’s financials remain a concern, with a 52% year-over-year revenue drop to $1.47 million and operating losses widening by 30% to $21.6 million. These figures reflect the high costs of R&D and operational scaling, typical for early-stage tech firms but exacerbating near-term risks.

Analyst sentiment has been a double-edged sword. While price targets have risen, with B. Riley Securities hiking its target to $35 from $19, the sector’s speculative nature persists. Quantum computing remains unproven at scale, with commercial applications years away. This uncertainty, coupled with macroeconomic headwinds—such as rising Treasury yields and a 1.41% Nasdaq decline—has amplified volatility. Investors appear to favor AI stocks, which offer faster returns, further pressuring Rigetti’s valuation.

The company’s $9 billion market cap, despite minimal revenue, highlights its speculative profile. While government contracts and partnerships with national labs signal institutional confidence, reliance on public funding introduces policy risks. Competitors in quantum and AI sectors, along with broader market corrections, add layers of complexity. For now, Rigetti’s stock remains a high-risk bet, hinging on its ability to commercialize technology and secure sustained revenue streams in a rapidly evolving landscape.