Rigetti Computing stock price has had a rough run in recent days, declining by more than 7% in the last five sessions. Nonetheless, its strong run in the last month has kept it afloat, with gains of 14% during that period. With quantum computing gaining traction, the company’s upside looks promising. However, there is still a wide gap between its revenues and its valuation.
Quantum computing is still some time away from mass adoption, and AI is currently the darling of the market. Rigetti Computing earned $2.4 million in revenue and reported $17.3 million in operating losses in Q3 2024.
The scenario above points to a company that could continue spending a substantial portion of its cash on R&D, limiting chances of profitability in the foreseeable future. Nonetheless, Rigetti stock price has risen by 1,230 in the last six months, and it is currently valued at $3 billion. The stock spike and high valuation are based on an anticipated strong demand for quantum computing in the coming years.
Rigetti (NASDAQ: RGTI) took the tech world by storm after showcasing its Willow chip’s ability to work out in five minutes a standard computing challenge that would have taken a supercomputer near light-years to solve. The company will launch two new systems with 36 and 108 cubits, which could be another major leap towards making quantum computing more reliable.
While it is practically a growth stock, Rigetti has already established itself as a market leader force in the quantum. That will likely keep investors in a Fear of Missing Out (FOMO) mindset and help drive up the stock price. However, it faces existential competition from tech giants like Alphabet, and that will likely get tighter as time goes by.
Rigetti Computing Stock Price Prediction
The RSI on Rigetti computing stock price signals that it will likely stay on the downtrend in the near-term, below the $12.00 pivot mark. The stock will likely find the first support at $12.30. However, an extended control by the sellers will break below that level and potentially test $12.60.
On the other hand, moving above $12.00 will favour the buyers to take control. In that case, the stock will likely encounter the first resistance at $11.55. The downside narrative will be invalid if it breaks above that barrier. Furthermore, the momentum could potentially test $11.10.
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