2 days ago
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Adam Spatacco, The Motley Fool
Thu, May 14, 2026 astatine 12:35 PM CDT 4 min read
Quantum computing is an emerging tract promising to lick problems truthful analyzable that adjacent the world's astir almighty supercomputers would request longer than the property of the beingness to ace them. Rigetti Computing (NASDAQ: RGTI) sits astatine the halfway of this breathtaking narrative.
For a little window, investors treated the institution similar the adjacent large artificial quality (AI) play. But soon aft the banal became a phenomenon, world arrived. With shares present down 66% from all-time highs, present is what astute investors should recognize earlier touching Rigetti stock.
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What does Rigetti Computing do, and wherefore should investors care?
At its core, Rigetti builds superconducting quantum processors. These chips harness the principles of quantum mechanics to execute blase calculations that classical computing systems fundamentally cannot.
The institution sells entree to its quantum systems done a cloud-based infrastructure and besides makes carnal hardware for authorities agencies and probe institutions. Rigetti banal went parabolic successful precocious 2024 and passim 2025 -- riding a sector-wide frenzy ignited by Alphabet's unveiling of its Willow quantum chip.
As 1 of the fewer publically traded pure-play quantum names, Rigetti became a conveyance for speculative investors who wanted vulnerability to the adjacent AI mega-theme.
Rigetti's fiscal results exemplify a harsh world
Rigetti's fiscal results are hard to support nether immoderate accepted valuation framework. In 2025, the institution generated astir $7.1 cardinal successful gross -- a humble diminution from the anterior year. Meanwhile, nett losses exceeded $216 cardinal connected a mostly accepted accounting principles (GAAP) basis.
During the archetypal 4th of 2026, the institution showed signs of sequential improvement, with gross of $4.4 million. However, operating losses for the 4th persisted.
Rigetti's price-to-sales (P/S) aggregate of 607 is not a rounding error. It signifies an anticipation that the institution volition 1 time make gross commensurate with an endeavor valued astatine $6.2 billion. Unfortunately, determination is nary near-term grounds supporting this outlook.
Rigetti is simply a falling knife, not a dip to pounce connected
There are different concerns with Rigetti beyond the company's header losses. First, insider selling has been a accordant theme. This clip past year, Rigetti CEO Subodh Kulkarni sold astir 1 cardinal shares adjacent the stock's highest for astir $11 cardinal -- a determination that could suggest the frothy valuation is disconnected from underlying fundamentals.
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