Rigetti Computing (RGTI) shares fell sharply on Tuesday, dropping over 14% as a broad selloff in technology stocks dragged down high-growth names across the sector. The stock closed at $18.64, down $3.13 from the previous close, after reaching an intraday high of $22.57 earlier in the session. The decline erased gains that followed a bullish research note from Bernstein analysts earlier this week.
The broader market weakness was evident across major indices. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, fell 3.8%, while the SPDR S&P 500 ETF (SPY) lost about 2.0%. Both the Nasdaq Composite and the S&P 500 hit their lowest levels in over a month, with technology stocks leading the decline ahead of key U.S. inflation data and the much-anticipated debut of SpaceX.
Bernstein analyst Mark Newman had earlier reiterated a positive view on quantum computing, describing the technology as “set to become the next important step in computing.” He suggested that quantum processors will likely work alongside traditional CPUs and GPUs, which power conventional computing and artificial intelligence workloads. Bernstein highlighted Rigetti and Infleqtion as standout companies in the quantum space.
However, the broader market sentiment turned against speculative tech names. Rigetti, which is one of the more liquid ways to trade quantum computing, is particularly vulnerable when investors rotate out of high-growth, high-multiple stocks. The company’s shares have been volatile, reflecting both the promise of quantum technology and the risks associated with early-stage, loss-making companies.
Other quantum computing stocks also suffered double-digit declines. IonQ (IONQ) sank 14.6%, D-Wave Quantum (QBTS) fell 13.1%, and Quantum Computing Inc. (QUBT) dropped 13.0%. The selloff was sector-wide, not tied to any company-specific news.
Rigetti, which designs and manufactures superconducting quantum computers and quantum processing units (QPUs), reported first-quarter revenue of $4.4 million in May. The company posted an operating loss of $26.0 million for the quarter. As of the end of the first quarter, Rigetti held $569.0 million in cash, cash equivalents, and available-for-sale investments. CEO Subodh Kulkarni emphasized the company’s commitment to “disciplined execution” on its quantum roadmap.
On the technology front, Rigetti’s flagship product is the Cepheus-1-108Q, a 108-qubit quantum machine that became broadly available in April through Rigetti’s own cloud platform and on Amazon Braket. Amazon Web Services (AWS) noted that this is the first superconducting QPU on Braket with over 100 qubits.
Federal support is also a key factor for Rigetti. On May 21, the company announced it had received a letter of intent from the U.S. Commerce Department for a potential award of up to $100 million over three years to support research and development in superconducting quantum computing. The proposed agreement would give the government an equity stake, which could dilute existing shareholders if new shares are issued.
Adding to the near-term pressure, director Ray Johnson filed a Form 144 with the Securities and Exchange Commission on June 8, indicating plans to sell 122,188 shares worth approximately $2.6 million. The filing noted that the trading plan was adopted in March. It is important to note that filing the form does not confirm that any shares have actually been sold.
The risks for Rigetti remain significant. The federal award is not yet a finalized contract, quantum hardware still needs to improve in accuracy, and the company continues to operate at a loss. If investors continue to move away from high-multiple tech names, or if Rigetti fails to meet technical milestones such as improving two-qubit gate fidelity, the stock could remain volatile.
Tuesday’s price action illustrated a key dynamic: even with a clearer long-term narrative from analysts, a small, loss-making hardware stock is not immune to broader market selloffs. The Bernstein note provided talking points for quantum bulls, but in the end, market sentiment prevailed.
