Why Rigetti Computing (RGTI) is Last Week’s Biggest Loser?

We recently published a list of These 10 Firms Were Last Week’s Biggest Losers. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against other firms that were last week’s biggest losers.

Ten companies fell significantly last week, mirroring a broader market downturn, as investors sold off positions following disappointing news and data that weighed heavily on market sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

To come up with this week’s top decliners, 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 more than 50 percent in just a week, ending Friday’s trading at $8.93 versus the $18.84 registered week-on-week along with a broader sector downturn, as investors sold off positions following Nvidia Corp. chief Jensen Huang’s statement that the practical use of quantum computers are still 15 to 30 years away.

The timeline left little room for optimism among investors, who had hoped for quicker breakthroughs.

In addition, analysts recently cautioned investors about the risks of speculating in sectors such as nuclear and quantum computing, suggesting it could take a long time before these fields generate meaningful returns.

Other analysts also viewed Rigetti Computing, Inc. (NASDAQ:RGTI) as overvalued, trading at an EV-to-revenues ratio of 455 and a price-to-sales ratio of 242 currently.

Overall, RGTI ranks 1st on our list of firms that were last week’s biggest losers. While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that 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.

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Disclosure: None. This article is originally published at Insider Monkey.