Rigetti’s Speculative Run Ends As RGTI Stock Breaks Last Support – Where Next?
Rigetti Computing’s once-dazzling ascent has come undone as investors abandon the quantum hype, leaving behind a stock caught between...
Quick overview
- Rigetti Computing's stock has plummeted nearly 10% after a significant rally, falling below the critical $30 mark.
- The company's financial performance is deteriorating, with Q2 2025 revenue dropping to $1.8 million from $3 million a year earlier.
- Investor sentiment has shifted from optimism to panic selling, reflecting a broader decline in the quantum computing sector.
- Rigetti's high valuation, with a price-to-sales ratio above 2,000x, is increasingly seen as unsustainable without substantial revenue growth.
Rigetti Computing’s once-dazzling ascent has come undone as investors abandon the quantum hype, leaving behind a stock caught between collapsing expectations and grim financial truth.
A Spectacular Rally Turns Sour
After a year of dizzying gains, Rigetti Computing (NASDAQ: RGTI) is in freefall. The stock, which had surged nearly 300% since September, fell close to 10% on Wednesday, plunging below the critical $30 mark. The failure to reclaim the 20-day moving average has flipped short-term momentum firmly in favor of sellers, while technical analysts warn that a drop below $25 could trigger a steeper correction.
RGTI Chart Daily – The 50 SMA Has Been Broken
This sharp reversal marks the unraveling of one of the most overextended rallies of 2025. Once a speculative favorite among retail traders, Rigetti’s parabolic rise is now giving way to panic selling. Analysts note that the stock’s 50-day SMA was breached this week, confirming that bullish momentum has evaporated.
Quantum Mania Meets Reality
Rigetti’s downfall mirrors the wider implosion across the quantum computing sector, which for months had been inflated by retail speculation and misplaced optimism. The company’s 3,300% surge from under $1 in 2024 was driven more by rumor than reality — particularly unfounded chatter about U.S. government investment in the space. When officials refuted those claims, sentiment turned overnight, sending once-soaring quantum names like IonQ, D-Wave, and Rigetti into steep declines.
What was hailed as the next frontier of computing has instead become another casualty of speculative excess. The frenzy that once fueled daily double-digit gains has devolved into a brutal selloff, as investors confront the sector’s lack of meaningful profitability or commercial traction.
Big Promises, Bleak Performance
Despite high-profile partnerships with NVIDIA and a strong showing at the company’s GTC event, Rigetti’s fundamentals remain weak. Its Q2 2025 results told a story of contraction rather than growth — revenue dropped to $1.8 million from $3 million a year earlier, while first-half revenue nearly halved to $3.2 million.
These numbers expose a business shrinking in real terms, even as its market capitalization hovers around $17 billion. The valuation now implies a staggering price-to-sales ratio above 2,000x, a level that even speculative tech bulls struggle to justify. Profitability remains distant, margins are narrowing, and operating losses continue to widen — a combination that erodes confidence with every quarter.
Valuation Cracks Widen
The cracks are no longer theoretical. Wall Street analysts warn that Rigetti’s valuation bubble may be on the verge of bursting entirely. The stock’s plunge comes as investors rotate toward companies with tangible earnings and stable cash flow, leaving Rigetti stranded in a tightening liquidity environment.
The company’s narrative — once driven by bold claims about merging AI with quantum computing — now rings hollow. Without substantial contracts or revenue expansion, Rigetti’s lofty promises look increasingly like empty talk.
From Hype to Hard Landing
Rigetti’s trajectory has shifted from unstoppable rally to sobering correction. What was once a symbol of futuristic innovation is fast becoming a cautionary tale about the perils of speculative euphoria.
Investor sentiment has turned decisively negative, and the question has flipped from “how high can it climb?” to “how much further can it fall?” Unless Rigetti delivers real commercial breakthroughs soon, its descent toward the $20 range may only be the beginning — a harsh reminder that in quantum markets, hype collapses far faster than it rises.
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