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Luke Kawa5/12/25

Rigetti tumbles after quantum computing company whiffs on sales

Rigetti Computing is getting smacked in the after-hours session after the quantum computing firm’s first-quarter sales fell far shy of estimates.

Revenues for Q1 were below $1.5 million, while analysts had expected $2.56 million.

It looks to be a win for short sellers, who had gotten smacked today by the likes of SoundHound AI and CoreWeave. Per S3 Partners, short interest in Rigetti increased by nearly $740 million last week ahead of this report.

Prior to earnings, shares of Rigetti were down about 40% from their early 2025 record high, with all of the losses linked to a 70% slump in the days after Nvidia CEO Jensen Huang said that it would likely be decades before quantum computers would be “very useful.”

Peer D-Wave Quantum, which reported earnings last week, is much further along in commercialization than Rigetti, having booked $15 million in revenues for Q1, much of which was linked to the sale of one of its systems to a supercomputing center in Germany.

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Markets droop as AI credit fears grow and jobs report looms

The S&P 500, Nasdaq 100, and Russell 2000 all slumped on Monday.

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Matt Phillips8h

Bitcoin-sensitive stocks hammered as crypto declines

Bitcoin-sensitive stocks tumbled Monday, enduring a much steeper drop than the keystone crypto asset itself, which was down nearly 4%, falling below $87,000, as of 12:20 p.m. ET.

Goldman Sachs’ themed basket of bitcoin-sensitive equities was down more than 8%. (It consists of companies tied to bitcoin, either through mining, digital payments, crypto investment, or blockchain technology.) It was one of the worst performers among Goldman’s thematically curated baskets of shares on Monday.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

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Nvidia’s favorite stocks are getting shellacked as AI credit risk spreads

Nvidia’s “House of GPUs” is looking a little wobbly.

Shares of Applied Digital, CoreWeave, and Nebius — three of the four biggest equity positions held by the chip designer as of September 30 — are getting crushed on Monday.

Nvidia owned about $3.6 billion worth of these data center and neocloud stocks (with the overwhelming majority in CoreWeave) per its most recent 13F filing.

The AI credit risk that’s been most talked about in reference to Oracle’s widening credit default swaps spreads is also present in some of these firms, as well.

An Applied Digital bond due in 2030 is trading below $96 for the first time this month. That issuance was made to support data centers where CoreWeave will be the main tenant.

CoreWeave, which earlier this year received warrants enabling it to purchase a large chunk of Applied Digital shares as part of a data center leasing deal, sank last week after announcing a $2 billion convertible note offering that was later upsized.

Of course, it’s not just Nvidia-owned stocks, but the entire data center ecosystem that’s under pressure on Monday. Cipher Mining and IREN are also getting walloped — with Monday’s crypto tumble also likely weighing on these two bitcoin miners turned data center companies.

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