Quantum computing, a field brimming with potential, presents investors with tantalising prospects and considerable risks. Rigetti Computing, a key player in this nascent industry, has experienced a meteoric rise, but recent performance raises questions about its long-term viability.
The quantum computing market, valued at $1.4 billion in 2024, is projected by Grand View Research to reach $4.2 billion by 2030, demonstrating a compound annual growth rate of nearly 21%. This rapid expansion makes quantum computing stocks attractive, yet the inherent uncertainties demand careful consideration.
Rigetti Computing (NASDAQ: RGTI) has seen its stock price surge by almost 2,700% in just three years. However, this year has brought a downturn, with the stock falling 28% to $15.88 as of Monday. This decline prompts the question: Is Rigetti now a bargain, or a value trap?
While Rigetti is making strides in fidelity and scale, its financial performance remains a concern. The company’s revenue for the last year totalled $7.1 million, dwarfed by operating expenses of $86.7 million. This disparity necessitates continuous fundraising, increasing the risk of stock dilution, which could further depress the share price. In 2025 alone, Rigetti burned through $58.5 million in operating activities.
The quantum computing landscape is crowded, making it difficult to predict which companies will succeed. Rigetti’s current market capitalisation stands at $5.3 billion. This valuation seems excessive considering the risks, uncertainties, and the relatively small size of the current quantum computing market.
Given these factors, Rigetti Computing remains a high-risk investment. The potential for further decline is significant, making it a stock to approach with extreme caution.
