Why Rigetti Computing Is Extremely Volatile Today

• Rigetti Computing stands at the forefront of the quantum computing industry, showcasing its leadership in this revolutionary technology.

• Earlier today, rising long-term U.S. Treasury yields contributed to a decline in many stocks, creating an atmosphere of uncertainty.

• However, a notable Wall Street analyst boosted Rigetti’s price target significantly, providing a glimmer of optimism amidst the market volatility.

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Shares of Rigetti Computing (NASDAQ: RGTI) experienced a drop of nearly 11% earlier today but managed to recover much of those losses. As of 11:42 a.m. ET, the stock was trading approximately 2% higher. The recent rise in U.S. Treasury yields appears to have negatively impacted stocks, particularly those viewed as high-growth, such as Rigetti.

Despite the Federal Reserve’s decision to lower interest rates last week, longer-term Treasury yields have increased, prompting concerns among investors about inflation forecasts, which could lead to a sell-off in bonds, thus raising yields. This correlation typically creates headwinds for stocks reliant on future growth projections.

Adding to the day’s complexities, B. Riley Financial analyst Craig Ellis reiterated a buy rating on Rigetti and significantly raised his price target from $19 to $35 per share. Ellis’s bullish outlook is based on notable advancements within the quantum computing field and developments in regulatory environments. He emphasized the growing interest from the Department of Energy’s National Laboratories, which is now focusing not only on the feasibility of quantum computing but also its commercialization.

Recently, Rigetti secured a $5.8 million contract with the U.S. Air Force Research Laboratory (AFRL) to spearhead the development of superconducting quantum networking technology—projected to be a fundamental upgrade to the current internet with superior capabilities.

The potential of the quantum computing industry appears vast and promising, with the potential to rival the impact of artificial intelligence (AI). Rigetti is widely regarded as a key player in this sector. If the technology can be successfully commercialized and fulfills its anticipated potential, Rigetti is likely to become a highly valuable investment.

However, it’s important to recognize the uncertainty that lies ahead. Rigetti currently generates limited revenue, even with a market capitalization approaching $9 billion. Therefore, it may be prudent to treat investments in Rigetti as speculative and consider maintaining smaller positions.

Before investing in Rigetti Computing, potential buyers should weigh the risks and consider the volatility inherent in the stock and the broader market conditions.