Title: The Current Status of RGTI Stock
Quantum computing company Rigetti Computing (NASDAQ: RGTI) experienced a 45% stock plunge on January 8, 2023. This drop followed comments from Nvidia CEO Jensen Huang, who suggested that practical, useful quantum computing might be 20 years away. The impact wasn't confined to Rigeti; IONQ fell 39%, and D-Wave saw a 36% decrease as well. While it's widely recognized that quantum computing is in its developmental phase, the extent of this decline seems excessive.
Investors seeking to capitalize on quantum computing's potential, while smooth-riding returns, could consider the High-Quality Portfolio. This investment strategy has outperformed the S&P, and since its inception, it has seen returns exceeding 91%.
Rigeti is a major player in the quantum computing ecosystem. They've developed a 9-qubit quantum processing unit, the Novera, designed for local deployment, and they offer a Quantum Computing as a Service (QCaaS) platform. This allows their quantum systems to be easily integrated into various cloud environments.
Rigeti expanded their quantum computing offerings with the introduction of the Ankaa-3 system, which boasts 84 qubits and enhanced precision thanks to upgraded hardware components and sophisticated capabilities. Looking forward, Rigeti intends to release two more quantum systems in 2025: a 36-qubit model and a system exceeding 100 qubits. Both will prioritize improved reliability, aiming for a 2x reduction in error rates.
Recent progress in the quantum computing field has been visible with Google’s Willow chip and Amazon’s Quantum Embark. This momentum has fuelled the rally in the quantum stocks, including RGTI. In addition, federal funding of $2.7 billion has been dedicated to quantum computing, further supporting these stocks. Despite these positive developments, Rigeti’s stock performance has been quite volatile compared to the broader markets. In 2022, returns were -92%, but in 2023, they increased by 35%, and a staggering 1449% in 2024.
Due to the volatility of quantum computing stocks, RGTI’s growth has been mixed, but the High Quality Portfolio has provided better returns with less risk than the benchmark S&P 500 index over the last four years.
Beyond the basics, the future of quantum computing is characterized by a complex mix of advancements, challenges, and skepticism. Key milestones in 2025 include the integration of hybrid quantum-classical systems, the achievement of quantum advantage, and commercialization of quantum computers in real-world networks. Adoption will focus on industries like finance, banking, big tech, pharmaceuticals, defense, and logistics. However, concerns about operational reliability and industry skepticism must be considered, along with the vital need for infrastructure development.
Rigeti Computing’s stock price has experienced significant gains, with shares up by 1,170% within the previous year. However, there's ongoing debate about the long-term sustainability of these gains, and Martin Shkreli's comments have reignited discussions about the future viability of quantum technology stocks, such as Rigeti's. Therefore, thorough research should be conducted on company operations and long-term strategies before investing in quantum stocks.
While 2025 is set to be a groundbreaking year for quantum technology, with breakthroughs in quantum error correction and a focus on measurable advancements, investors must remain wary of these factors.
- Despite Jensen Huang's comments about quantum computing's potential timeline, Rigetti Computing's high-quality portfolio continues to outperform, with returns exceeding 91% since its inception.
- Rigetti Computing's valuation, as reflected in their NASDAQ stock price, saw a significant increase in the previous year, potentially influenced by advancements in the field like Google's Willow chip and federal funding.
- In light of the complexities and skepticism surrounding quantum computing, investors looking to mitigate risk might consider RGTI as part of a diversified investment strategy, such as the High-Quality Portfolio.
- Quantum computing companies like Rigetti, with their advanced systems like the Ankaa-3, will be crucial in driving industry advancements towards commercialization in sectors like finance, banking, and tech, but will need to address operational reliability concerns to achieve widespread adoption.
