Why Rigetti Computing Inc. (RGTI) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Rigetti Computing Inc. (NASDAQ:RGTI) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in 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 fell for a third straight day on Wednesday, losing 3.46 percent to finish at $9.90, in line with its counterparts, as investors repositioned portfolios ahead of Nvidia Corp.’s (NASDAQ:NVDA) much-anticipated Quantum Day.

NVDA is set to hold the Quantum Day on Thursday where industry leaders are expected to join NVDA CEO Jensen Huang in a discussion about the trends in the industry.

It can be recalled that Huang earlier commented that the quantum computing industry is not expected to be very useful in the next 15 to 30 years, a view that was similarly shared by Meta Platforms CEO Mark Zuckerberg.

In other recent news, RGTI entered into a share purchase agreement with Quanta Computer, involving the latter’s purchase of $35 million RGTI shares at a price of $11.59 apiece.

Following the investment, the two parties would jointly invest $100 million over the next five years for the development of quantum computers.

Overall, RGTI ranks 9th on our list of Wednesday’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 time frame. If you are looking for an AI stock that is as promising as RGTI but 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.