Prediction: This Quantum Computing Stock Is Going to Plummet in the Second Half of 2026
Rigetti Computing stock recently soared after a big announcement by the U.S. government.
Prediction: This Quantum Computing Stock Is Going to Plummet in the Second Half of 2026
Overview
Last month, the U.S. government announced plans to acquire equity stakes in nine different quantum computing companies, providing $2 billion in total funding to help America build a leadership position in this important industry. Rigetti Computing (NASDAQ: RGTI) will receive a $100 million investment over three years, and its stock has jumped by 20% since the news broke.
Quantum computers can use a concept called superposition to simulate multiple solutions to a given problem at once, so they are more efficient at processing specific workloads compared to traditional computers, especially in areas like science and cryptography. Rigetti makes some of the industry's best quantum systems, but they still make far too many errors to solve most real-world problems.
Details
While the U.S. government's backing is great news, Rigetti still generates a very small amount of revenue relative to its market capitalization. Here's why I predict its elevated valuation will lead to a 50% (or more) decline in its stock price during the second half of this year.
Source
Originally published at www.fool.com.
