Uncertainty at Rigetti Computing: Stock Plummets

Rigetti Computing's shares are experiencing a dramatic drop in this trading week. The quantum computing company's stock price fell by 47.2% by Wednesday compared to the closing price of the previous week, according to data from S&P Global Market Intelligence. Although trading was suspended due to a holiday in honor of President Jimmy Carter, Rigetti had already recorded a massive loss in value after three days. The decline was influenced by skeptical remarks from Jensen Huang, the president of Nvidia, as well as macroeconomic risks. Nvidia CEO Jensen Huang expressed concerns about the quantum computing industry at this year's CES, thereby putting pressure on the shares of Rigetti and other specialists in the field. Huang stated that quantum computers are currently not an ideal solution for many computational problems and that commercial use is still a long way off. He noted that viable quantum computers could be expected in about 15 to 30 years, which dampened the optimism of many investors. Additionally, macroeconomic risks came into focus again this week. A survey by the Bureau of Labor Statistics revealed more job openings than expected, which was interpreted as a potential warning signal for inflation. Further uncertainty was caused by reports that President-elect Trump might consider declaring a national economic emergency to quickly impose high tariffs on imported goods. Despite the dramatic price drops this week, Rigetti's stock price has risen by 781% over the past year. As a relatively small company in an emerging technology sector, the stock is susceptible to significant fluctuations due to macroeconomic developments and negative industry outlooks. Nvidia's skeptical forecast adds a new dimension to this volatility.