Why Rigetti Computing Inc. (RGTI) Went Down on Monday

We recently published an article titled These 10 Companies Led Monday’s Downturn. In this article, we are going to take a look at where Rigetti Computing Inc. (NASDAQ:RGTI) stands against the other stocks.

Wall Street’s major indices kicked off the trading on a positive note, all finishing in the green territory, as investors brushed off fears of growing global trade tensions.

The Dow Jones rose by 0.38 percent, the S&P 500 grew 0.67 percent, while the Nasdaq rallied 0.98 percent.

However, 10 companies defied a broader market optimism, mostly due to a series of stock rating downgrades from investment research companies on the back of poor earnings guidance and dismal earnings performance.

To come up with Monday’s worst performers, we considered only 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)

Rigetti Computing Inc. dropped for a third consecutive day on Monday, losing 3.89 percent to finish at $12.35 each, as investor sentiment was dampened by fears of growing trade tensions between the United States and some of its largest trading partners.

While RGTI is not expected to be directly impacted by tariffs, its stock has shown heightened sensitivity to developments in the Artificial Intelligence industry as well as news from Nvidia Corp., a key player in the booming AI which earlier promised its commitment to supporting the growth and development of the quantum computing sector.

With Trump promising the imposition of tariffs on all countries, NVDA, which sources its chips from other international suppliers such as Taiwan Semiconductor Manufacturing, could face significant challenges from any potential tariff imposition, impacting not only its operations but also other broader sectors, such as quantum computing.

Overall RGTI ranks 7th on our list of Monday’s worst performers. While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as 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.