Quantum-computing upstart sees massive gains turn to losses after former bull calls surge “ridiculous”
The parabolic move in Rigetti Computing, which saw the quantum-computing firm more than double over the past week, is reversing course after a prominent research firm that had been bullish said the stock was “ridiculous here!”
Shares of the company had soared on Tuesday and were up more than 20% in early trading on Wednesday after the company announced that, in partnership with Quantum Machines and Nvidia, it was able to use AI to automate how a quantum computer is calibrated.
Talk about a perfect marriage of buzzword-y thematic investment opportunities: quantum computing and AI.
Setting up quantum computers to do whatever it is they’re being asked to do is an arduous process, and using AI tools to do this is apparently quite a bit of a time-saver.
Wednesday’s gains swung to losses following this tweet from Citron Research, which had recommended the stock in July.
Buying $RGTI based on Google’s quantum success is as misguided as believing every TikTok guitarist is the next Taylor Swift. When the hype fades, investors will recall $RGTI sold equity at $2 just two weeks ago, with more dilution to come rather than true quantum competitiveness.…
— Citron Research (@CitronResearch) December 11, 2024
The company, worth about $1.8 billion at the close of trading on Tuesday, has since experienced a near $600 million swing in market cap by 10:20 a.m. on Wednesday.
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