Why Rigetti Computing Stock Plummeted 22.3% in the First Half of 2025 — What Comes Next?

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In the first part of this year, Rigetti Computing’s (RGTI) stock experienced significant declines, with a drop of approximately 22.3%. This downward trend is evident in data provided by S&P Global Market Intelligence. Interestingly, despite this, the S&P 500 (^GSPC) index witnessed an increase of about 5.5% during the same period.

Over the course of 2024, the share price of the quantum computing specialist surged an astounding 1,449%. However, during the first half of 2025, there was a noticeable dip or pullback. Contrasting this, the stock has experienced substantial growth in trading during July and has now recovered more than it had lost during earlier sell-offs in the year.

Rigetti stock pulled back in the first half of 2025

After experiencing significant increases in trades during the previous year, Rigetti Computing experienced a series of large-scale sell-offs at the start of 2025 as investors cashed out their profits. The stock experienced downturns in line with broader economic factors and market instability affecting technology companies that heavily rely on growth.

Rigetti’s shares experienced notable shifts in response to comments made by Nvidia CEO Jensen Huang. In January, Huang suggested that a 15-year timeline for quantum computing to deliver substantial commercial uses might be too optimistic and predicted it could realistically take at least 20 years.

Huang’s initial remarks on quantum computing technologies led to significant drops in stock prices for companies like Rigetti, but later he presented more positive forecasts for the industry. He admitted in March that he had underestimated the timeline for commercializing quantum technology, and by June, he stated that the technology might be approaching a crucial turning point. These statements contributed to a rise in the value of stocks related to quantum computing, with Rigetti’s stock price seeing a significant increase due to this trend.

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What’s next for Rigetti Computing?

In the second half of this year, Rigetti Computing’s stocks have experienced significant growth. The surge in value can be attributed to increased enthusiasm about the quantum computing industry and favorable news regarding the company’s operations, causing a 40% increase in the stock price over the past month.

Yesterday, Rigetti Corporation announced that they had accomplished a median 2-qubit gate fidelity of 99.5% on their modular 36-qubit system. This marks a substantial reduction in error rate compared to their previous best results with the 84-qubit Ankaa system. The company anticipates launching their 36-qubit system on August 15, and they aim to unveil a chipset with over 100 qubits before the end of the year. This impressive performance boost has fueled a significant rally in the stock, as investors seem enthusiastic about Rigetti’s commercialization goals for this year.

As a bystander, I find myself observing Rigetti Computing, a company currently appraised at an astounding 554 times its projected sales for this year. This valuation, heavily reliant on future growth, gives off a distinctly high-risk impression at the moment. However, it’s intriguing to consider that they might be in the nascent stages of tapping into massive long-term growth potential within the quantum computing sector.

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2025-07-18 00:52