RGTI: Quantum Darling Rigetti Stock Slumps Amid Soaring Valuation

Oct 16 - Rigetti Computing RGTI fell 8% on Thursday as traders reassessed the quantum computing company's surging valuation following a sharp year-long rally.

The stock has soared roughly 286% since early September and more than 5,500% over the past year, lifting its market value to about $17 billion. Shares retreated to near $52 after touching a record $58 earlier this week.

Shares are trading now at a P/S ratio of 1,573x, significantly higher than the sector median of 2x.

The rapid climb came as investors poured into quantum computing names such as IonQ IONQ and D-Wave Quantum (QBTS), betting the sector could become the next major technology theme. Optimism intensified after JPMorgan Chase JPM unveiled a $10 billion initiative backing advanced technologies including quantum computing.

However, analysts are turning cautious. Rigetti generated only about $8 million in annual revenue, and its second-quarter sales dropped to $1.8 million from $3 million a year earlier. That imbalance between market enthusiasm and weak fundamentals is fueling concern that the stock's rise may not be sustainable.

Some market watchers warn that Rigetti's valuation surge reflects a quantum bubble, with prices driven more by speculative sentiment than tangible progress. If enthusiasm cools, analysts say the stock could slide further toward early September levels around $35.