We recently published a list of 15 Stocks That Took a Nosedive in January. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other stocks that took a nosedive in January.
Historically, the S&P 500’s performance in January sets the pace for the rest of the year. According to Jared Blikre, Yahoo Finance Markets Editor, the S&P 500 returned nearly 17% in January, which is pretty impressive because a positive January usually translates as a positive year for the markets. Jared also added that while the energy and utilities sectors are lagging, the communication services and healthcare segments are showing signs of strength.
At the same time, while the S&P 500 remained positive at the end of January, some stocks declined due to various reasons especially the launch of the Chinese OpenAI rival, DeepSeek, and new regulations amid the new administration.
15 companies in diverse sectors such as the financials, biotechnology, healthcare, technology, and energy industries, declined due to unsupportive market conditions, macroeconomic environment, and other factors. That said, let’s take a look at the 15 stocks that took a nosedive in January.
To come up with the 15 names, we only considered stocks with a market capitalization of more than $2 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the 15 with the largest 30-day decline from January 3, 2024, to February 3, 2025.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up of an engineer typing at a quantum computing station in a modern office space.
Rigetti Computing, Inc. (NASDAQ:RGTI)
30-day Decline as of February 3, 2025: 35.7%
Rigetti Computing, Inc. (NASDAQ:RGTI), a quantum computing stock, declined by nearly 36% over the past 30 days, going from $19.02 to $12.25 on February 3, 2025. Over the past 30 days, the company saw a steep decline in its share price on January 8, going from $18.39 to $10.04 in just one day.
The reason behind this steep decline was the bearish comments on the quantum computing industry from NVIDIA’s CEO, Jensen Huang, accompanied by certain macroeconomic risks. Huang suggested that quantum computers were not the ideal solution for computing issues, bringing down stocks like RGTI in the quantum space. He also suggested that quantum computing technology will not be available for commercial use any time soon, maintaining a less optimistic outlook on the industry.
However, despite that, the stock boasts a market capitalization of $3.15 billion, as of February 3, and is a favorite among analysts. For instance, on January 27, analyst firm Needham, raised its price target on RGTI from $2 to $17, keeping a buy rating on the stock. The analyst firm maintained a bullish stance on the quantum computing sector, appreciating the technical milestones achieved by RGTI and its likes.
Overall, RGTI ranks 1st on our list of stocks that took a nosedive in January. While we acknowledge the potential of RGTI to grow, our conviction lies in the belief that certain 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.