Why Rigetti Computing, Inc. (RGTI) Went Down on Tuesday

We recently published an article titled Two of 10 Worst-Performing Stocks Fall to All-Time Lows on Tuesday. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against the other stocks.

Wall Street extended a lackluster performance on Tuesday, with two of its major indices ending with marginal movements amid a series of key economic factors dampening investor sentiment.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

Mirroring the mostly broader pessimism are 10 companies, with two even falling to new all-time lows. In this article, we have detailed the reasons behind their drop.

To come up with Tuesday’s worst performers, we considered only the stocks with $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. (NASDAQ:RGTI) dropped for a third consecutive day on Tuesday, losing another 10.77 percent to finish at $9.03 as investors sold off positions ahead of the company’s release of its earnings performance on Wednesday next week, March 5.

Investors will be looking out for any cues on the company’s business outlook for the year, especially with the competition heating up from the sudden emergence of quantum computing firms in China.

To recall, several US quantum computing stocks dropped on news last week that a startup Chinese quantum computing company called Origin Quantum Computing has created a prototype machine that features 72 working qubits.

Meanwhile, Rigetti Computing, Inc. (NASDAQ:RGTI) is expected to release a 36-qubit system based on four 9-qubit chips by mid-2025.

By the end of the year, Rigetti Computing, Inc. (NASDAQ:RGTI) expects to release a system with over 100 qubits with a targeted 2x reduction in error rates from the current level.

Overall RGTI ranks 9th on our list of Tuesday’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 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.