Rigetti Computing (RGTI) stock plummeted 31.21% in pre-market trading on Wednesday, amidst a broader selloff in quantum computing stocks. The steep decline followed comments from Nvidia CEO Jensen Huang, who expressed skepticism about the near-term prospects of practical quantum computing applications during Nvidia's analyst day event on Tuesday.
Huang suggested that "very useful quantum computers" are unlikely to arrive within the next 15 years, and potentially as far as 30 years away. This timeline contradicts the optimism surrounding quantum computing companies like Rigetti, which has seen its stock soar due to excitement over recent technological breakthroughs in areas like qubit fidelity and chip fabrication.
Huang's comments, coupled with concerns over Rigetti's lofty valuation of over $5 billion despite modest revenue and mounting losses, have dampened investor sentiment towards the company and the broader quantum computing industry. Rigetti faces stiff competition from well-funded tech giants like IBM and Alphabet, further complicating its path to commercialization and profitability in the near term.
