Down Almost 30%, Should You Buy the Dip on Rigetti Computing?
Key Takeaways
Interestingly, What's particularly noteworthy is Rigetti Computing (RGTI 4. 50%) has been one of the best-performing and most volatile stocks in recent history (this bears monitoring). Additionally, Over the past...
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July 24, 2025
06:03 AM
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Interestingly, What's particularly noteworthy is Rigetti Computing (RGTI 4. 50%) has been one of the best-performing and most volatile stocks in recent history (this bears monitoring)
Additionally, Over the past year, Rigetti s have gained 1,400% as quantum computing hype has accelerated
However, since peaking in January of this year, the stock price has been rather volatile, plunging by as much as 70% from the peak before rebounding
As of this writing, Rigetti is trading for 30% below its all-time high
With quantum computing still in the early stages and Rigetti trying to establish a leading position before the nology goes main, is now a smart time for patient investors to take a closer look (which is quite significant)
Impressive gress so far The basic idea is behind quantum computing is that the use of traditional bits of information create an upper limit on the performance of traditional computers, given current economic conditions
By using "qubits," which can be in many different states simultaneously, the idea is that quantum computers could be several orders of magnitude faster than traditional computers and therefore could solve blems much more efficiently, in today's market environment
In theory, a quantum computer could solve a blem in seconds that would take a traditional computer years
Moreover, Conversely, However, the key phrase is "in theory
At the same time, " Image source: Getty Images
Rigetti has some of the more impressive quantum computing achievements so far
However, The goal is to build quantum computing systems that customers can access remotely through the cloud
Moreover, So far, Rigetti has 237 issued or pending patents on its nology and has started to gain early-stage commercial traction through partnerships with governments and other customers
Just to name a few achievements so far: The company launched its first 32-qubit system on Amazon Web Services (AWS) in 2019
Rigetti demonstrated its first scalable quantum chip in 2021
On the other hand, The Aspen quantum computer became commercially available on AWS in 2022
The company's first quantum cessing unit became commercially available in 2023
Is Rigetti Computing a buy
Of course, Rigetti Computing is more attractively valued than it was in January when it reached an all-time high, but this is not a cheap stock by any definition
The analysis reveals s current stock price gives a market cap of $5 billion, and while Rigetti has generated some sales from things totypes and experimental ducts, but this is mostly a pre-revenue company
Nevertheless, Long-term, Rigetti sees a massive market for quantum computing
While it believes the market will be in the $1 billion to $2 billion range by 2030, it believes that's around when the nology will start to become main, creating a $15 billion to $30 billion market opportunity during the 2030s and growing to well over $100 billion by 2024
Now, there's a lot that needs to go well for the company, and the industry in general, for these market estimates to become reality (something worth watching)
Conversely, And there's also a lot that can go wrong, even if quantum computing does become the next big thing
For example, Rigetti has enough cash to fund its development for now but could need to raise additional capital and dilute holders
Plus, Rigetti isn't the only company that wants to be an early leader in quantum computing, and it isn't just startups -- some big players Alphabet's (GOOGL -0. 59%) (GOOG -0
In contrast, 31%) Google are quantum computing nology as well
Moreover, The bottom line is that if quantum computing ves to be a viable main nology, and Rigetti maintains a nology lead over competitors, this stock could be a run for patient investors
But it could also go to zero if things don't go well
Additionally, Keep this in mind when
However, It would be wise to only invest money you can afford to lose if things don't work out
The Author Matt Frankel, CFP, is a contributing Motley Fool Personal Finance Expert and Stock Market Analyst covering financial and real estate sectors, plus personal finance, in light of current trends
Prior to The Motley Fool, Matt was a high school and collegiate mathematics instructor
He holds a B, given current economic conditions
In Physics from University of South Carolina, an M, amid market uncertainty
In Mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University
Fun fact: Matt won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act
TMFMattFrankel X @MattFrankelCFP Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors
Matt Frankel has no position in any of the stocks mentioned
The data indicates that Motley Fool has positions in and recommends Alphabet
The Motley Fool has a disclosure policy, in this volatile climate.
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