- Summary:
- Rigetti Computing plunges 45% after Nvidia’s quantum computing comments. Is this a buying opportunity?
Rigetti Computing (NASDAQ: RGTI) saw its stock plummet by 47% on January 8, following comments from Nvidia (NASDAQ: NVDA) CEO Jensen Huang at CES 2025. Huang’s remarks about quantum computing being “20 years away from becoming very useful” sent shockwaves through the sector, leading to sharp declines in stocks like Rigetti, D-Wave Quantum (QBTS), and IonQ (IONQ).
About Rigetti and Recent Developments
Rigetti Computing, a quantum computing firm located in California, creates advanced quantum processors and provides services via its cloud platform, Forest. The Novera QPU, the company’s main product, is intended for premium uses such as scientific studies and climate simulation.
As Rigetti forges partnerships, notably one with Nvidia, it continues to depend significantly on government funds and research and development investments. As quarterly losses increase and commercial quantum computing remains unprofitable, the stock is likely to experience fluctuations.
Rigetti Stock Technical Analysis
The dramatic sell-off has placed Rigetti in a critical technical position. Key levels to watch include:
- Immediate Support Levels:
- $10.00: Psychological support, currently under pressure.
- $11.10: A previously established support zone that could act as resistance if broken.
- Resistance Levels:
- $15.44-$16.31: The 10-day SMA and a key zone for short-term recovery.
- $19.32: Major resistance that aligns with last week’s high.
Outlook for Rigetti
Although the significant downturn has increased Rigetti’s appeal to investors with a high-risk appetite, careful consideration is advised. Experts continue to classify the stock as a “Strong Buy,” yet its prospects depend on the effective advancement of quantum technologies and market successes.
For now, Rigetti must defend the $10.00 support zone to avoid further declines. A break above $15.44 could reignite bullish momentum, but the road to recovery may take time.