Why Rigetti Computing’s Stock Is on a Quantum Rollercoaster Today

Rigetti Computing just sent shockwaves through the quantum sector—and traders are scrambling to adjust their positions.

Market Whiplash Explained

The company's volatility stems from a perfect storm of technical breakthroughs meeting Wall Street's fickle expectations. Quantum computing announcements always trigger massive price swings, but today's movement eclipses even typical sector turbulence.

Institutional investors pile in while retail traders get whipsawed—standard procedure for emerging tech stocks that promise to revolutionize everything from cryptography to drug discovery. The stock charts resemble quantum superposition itself—somehow trading up and down simultaneously until the market finally observes a clear direction.

Quantum Hype vs. Financial Reality

Rigetti's technology could eventually crack encryption protocols that currently secure billions in digital assets—making every crypto holder suddenly very interested in quantum resistance. Yet today's price action shows how financial markets still struggle to value technology that might not see commercial adoption for another decade.

Another day, another 'game-changing' tech stock making traders rich or poor before lunch—because who needs long-term fundamentals when you've got quantum entanglement and day traders on caffeine?

Despite Wall Street upgrade, all eyes on bond yields

Despite the Federal Reserve lowering interest rates last week, longer-term Treasury yields edged higher over the past several days, as this group of investors may be concerned that the Fed isn't properly accounting for future inflation, leading them to sell bonds, which boosts yields. Rising bond yields can have a negative impact on stocks, especially high-growth and speculative stocks like Rigetti.

Image source: Getty Images.

Rigetti's volatility also comes asanalyst Craig Ellis reiterated a buy rating on the stock this morning and significantly hiked his price target from $19 per share to $35 per share. In his research note, Ellis attributed his bullish look to accelerated progress in the broader quantum computing space and regulatory front. The Department of Energy's National Laboratories are now interested in not just seeing if quantum computers are viable, but also the commercialization of such technology, he said.

Last week, Rigetti announced a $5.8 million contract with the U.S. Air Force Research Laboratory (AFRL) to lead the charge on developing a superconducting quantum networking, which WOULD essentially be the next iteration of the internet, with much more enhanced capabilities.

Big risk, big reward

The quantum computing space has immense potential and could be the biggest thing since artificial intelligence (AI). Rigetti is viewed as a leader in the space. If quantum computers can be commercialized and are as impactful as researchers believe, then Rigetti will be a phenomenal investment.

But there's still a lot that needs to happen between now and then, and Rigetti still generates very little revenue, despite trading at close to a $9 billion market cap. That's why I'd keep positions smaller and more speculative.