Is Rigetti Computing (RGTI) Mirroring Wall Street Downturn?

We recently published a list of 10 Companies Mirror Wall Street Downturn. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other companies mirroring Wall Street downturn.

Wall Street’s main indices finished the shortened trading week in the negative territory, dampened by labor market data that came in much hotter than expected. The news fueled concerns that the Federal Reserve will not slash interest rates again.

Both the Dow Jones and the Nasdaq Composite dived by 1.63 percent on Friday, while the S&P 500 declined by 1.54 percent.

Ten companies mirrored a wider market downturn amid a series of catalysts that dampened investing appetite. This article explores the reasons behind their decline.

In Friday’s biggest losers, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close up of an engineer typing at a quantum computing station in a modern office space.

Rigetti Computing, Inc. (NASDAQ:RGTI)

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI) tumbled by 11.06 percent on Friday, ending the week at $8.93 each as investor sentiment was still weighed by Nvidia Corp. CEO Jensen Huang’s recent statement that the practical use of quantum computers is still 15 to 30 years away.

Rigetti Computing, Inc. (NASDAQ:RGTI), which for months, has been riding the booming AI sector, suffered the setback as investors recalibrated their expectations for the timeline of quantum computing advancements.

Separately, AXS Investments CEO Greg Bassuk was quoted as saying in a report that quantum computing stocks’ valuations have “become a bit lofty” and that he was not surprised by the stock price’s correction.

“Broad consensus has long been that quantum computing’s mass appeal is years away so there is no real news underpinning today’s negative news,” he added.

Overall, RGTI ranks 3rd on our list of companies mirroring Wall Street downturn. While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.