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Rigetti Stock Plummets 51% Amid Quantum Application Doubts

1/13/2025

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Summary

Rigetti's Stock Dive

Rigetti Computing's stock plummeted by 51% following Nvidia CEO Jensen Huang's stark warning that commercial quantum applications may be two decades off. Investor Michael Wiggins De Oliveira urges caution, forecasting lackluster Q4 revenues and potential capital raises ahead. While analysts maintain a "Strong Buy" consensus, the average price target indicates troubling downside risk.

Summary

Huang's Warning Impact

Quantum computing stocks faced a rollercoaster ride after Nvidia's CEO, Jensen Huang, warned that real-world applications are still 15 to 30 years off. This revelation triggered steep drops for firms like IonQ and Rigetti Computing. Yet, some experts see a silver lining, asserting that commercial uses are already emerging, leaving investors with a complex landscape to navigate.

History

Historical Context

Nvidia CEO Jensen Huang's warning about commercial quantum applications being decades away echoes past tech industry setbacks, like the dot-com bubble burst in the early 2000s. During that period, inflated expectations led to significant stock declines for tech firms. Similarly, current investor skepticism reflects a cautious approach to emerging technologies, highlighting the industry's historical cycles of hype and disillusionment.

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Rigetti's Stock Dive

Rigetti Computing's stock plummeted by 51% following Nvidia CEO Jensen Huang's stark warning that commercial quantum applications may be two decades off. Investor Michael Wiggins De Oliveira urges caution, forecasting lackluster Q4 revenues and potential capital raises ahead. While analysts maintain a "Strong Buy" consensus, the average price target indicates troubling downside risk.

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