Why Rigetti Computing (RGTI) Crashed on Tuesday?

We recently published a list of 10 Stocks Kick Off Trading Week With Losses. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other stocks kick off trading week with losses.

Wall Street’s main indices began the shortened trading week on a lackluster note, albeit finishing in the green, as investors continued to digest corporate earnings results.

The S&P 500 led the charge, recording a modest 0.24 percent gain. However, the Dow Jones and the tech-heavy Nasdaq posted gains of only 0.02 percent and 0.07 percent, respectively.

Ten companies performed poorly on Tuesday amid a series of negative catalysts that disappointed investors. In this article, we identified the 10 worst performers and detailed the reasons behind their drop.

To come up with the list, 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. (NASDAQ:RGTI) fell by 10.92 percent on Tuesday to close at $10.52 apiece as investors sold off positions following news of growing competition in the quantum computing industry, particularly with the advancements of Chinese players, including Origin Quantum Computing.

RGTI, along with its quantum computing peers, including IONQ, lost valuations after Chinese news reports that startup Origin Quantum Computing created a prototype machine that features 72 working qubits.

Meanwhile, Rigetti Computing (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, 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 1st on our list of stocks kick off trading week with losses. 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.