Quantum Computing Stocks Take a Hit
Rigetti Computing’s Share Price in Free Fall
This week, Rigetti Computing’s stock has taken a drastic tumble, plummeting 47.2% since last Friday’s market close. The quantum computing company’s share price has seen a significant pullback due to bearish comments from Nvidia’s president, Jensen Huang, and macroeconomic risk factors.
Nvidia CEO’s Gloomy Outlook on Quantum Computing
Speaking at an event for analysts at this year’s CES, Huang gave a lukewarm outlook on the quantum computing space, triggering a sell-off for Rigetti and other specialists in the category. Huang stated that quantum computers wouldn’t be an ideal solution for many computing problems and poured cold water on hopes that the technology would be ready for commercial use anytime soon. His prediction of 20 years for commercially useful quantum computers has left many investors feeling uneasy.
Macroeconomic Risks Weighing on the Market
This week’s trading has seen a renewed focus on macroeconomic risks, with the latest survey from the Bureau of Labor Statistics showing more job openings than anticipated. This has been interpreted as a potentially bearish indicator for inflation. Additionally, President-elect Trump’s consideration of declaring a national economic emergency to introduce high tariffs on imported goods has added another source of volatility.
Speculative Stocks Feeling the Heat
Speculative stocks, including Rigetti Computing, are seeing big pullbacks in conjunction with rising yields for U.S. Treasury bonds. Despite the stock’s dramatic sell-offs this week, Rigetti’s share price is still up 781% over the last year. As a relatively small company with a speculative outlook in an emerging industry, Rigetti stock is predisposed to see big swings in conjunction with bearish macroeconomic news.
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