Understanding Rigetti ComputingRigetti Computing is a high-tech company that builds Quantum Computers. While normal computers (like your phone or laptop) use "bits" (0s and 1s), quantum computers use "qubits." This allows them to solve mathematical problems that are too complex for even the world's fastest supercomputers.
In 2025, Rigetti’s stock price became a "hot topic" because it grew by thousands of percentage points. However, as a new trader, it is important to understand why the price moved and why many experts are now careful.
Why the Stock Rose: The "Quantum Hype"
Several factors pushed Rigetti’s stock higher during the AI boom:
* Technology & Innovation: Rigetti is "vertically integrated." This means they make their own chips and their own software. This is a very professional and efficient way to build a company.
* Geopolitics: The United States government wants to win the "Quantum Race" against other countries. Because of this, companies like Rigetti often receive government support and contracts.
* Industry Trends: As Artificial Intelligence (AI) grows, it needs more power. Quantum computing is seen as the next step to make AI even smarter.
The Risk: Is the Price Too High?
When a stock grows too fast without having enough sales (revenue), traders call it " overbought." Here is the current situation for Rigetti:
* The Valuation Gap: Rigetti’s "Price-to-Sales" ratio is very high. This means the stock price is much higher than the actual money the company is making.
* High Cash Burn: Building quantum computers is very expensive. The company spends a lot of money on science and research, but does not yet have many paying customers.
* Market History: Professional traders remember the "Dot-Com" bubble of the year 2000. Back then, many internet stocks rose quickly and then crashed by 90%. Some experts fear Rigetti might follow a similar path.
Market Impact and 2026 Prediction
If you are trading this stock, you should expect high volatility. This means the price can go up or down 10% or 20% in a single day.
What to expect by the end of 2026:
Many analysts believe the "hype" will slow down and the price will return to a more realistic level. Predictions suggest the stock could settle between $3 and $7 by the end of 2026. This would be a "correction," where the market moves from trading on "dreams" to trading on "real financial results."
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