This Quantum Computing Stock Is Poised for a Sharp Selloff in the Second Half of 2026
Rigetti Computing has become one of quantum computing's biggest market darlings, but its lofty valuation, shrinking revenue, and continued share dilution could set the stage for a painful second-half pullback.
Overview
Quantum computing has been one of the hottest corners of the market, and the enthusiasm has lifted almost every name in the group. But not all of these companies have the business to back up their share prices, and one in particular looks stretched heading into the back half of 2026: Rigetti Computing (NASDAQ: RGTI).
Here is the uncomfortable part with Rigetti. Rigetti reported full-year 2025 revenue of about $7 million, down 34% from the year before. A company whose sales are shrinking still has a market value in the billions, which translates to a price-to-sales ratio in the hundreds. For comparison, most established technology companies trade in the single digits or low teens on that measure. Investors are paying for a future that the current business has not started to deliver.
Details
The bigger near-term risk with Rigetti is dilution. Rigetti runs an at-the-market equity program, which lets it sell new shares directly into the open market whenever the price rises, and it has already raised roughly $100 million this way. On top of that, the company accepted about $100 million in federal quantum funding in 2026 that came with the U.S. government taking an equity stake. Both moves strengthen the balance sheet, but they also expand the share count, and more shares outstanding tend to weigh on the price over time.
Source
Originally published at www.fool.com.