Rigetti Computing (NASDAQ: RGTI) saw its shares tumble 14.4% on Friday to close at $20.68, capping a weekly decline of approximately 19%. The sell-off was part of a broader rout in technology stocks driven by a stronger-than-expected U.S. jobs report that reignited concerns about the Federal Reserve maintaining its tight monetary policy.
The Nasdaq Composite fell 4.18% on Friday, with the Philadelphia semiconductor index posting its largest single-day drop since March 2020. The May payrolls report showed an increase of 172,000 jobs, exceeding expectations and fueling speculation that the Fed may keep interest rates higher for longer. This environment is particularly challenging for high-growth, long-duration companies like Rigetti, whose future profits are heavily discounted when rates rise.
Rigetti's decline mirrored that of other quantum computing names. IonQ (NYSE: IONQ) fell 13.5%, D-Wave Quantum (NYSE: QBTS) dropped 13.7%, and Quantum Computing Inc. (NASDAQ: QUBT) lost 11.0%. The sector-wide retreat highlighted that the move was driven by macro factors rather than company-specific news.
Investors are now focused on the coming week, which lacks any scheduled corporate events for Rigetti. The company's recent filings show insider transactions dated June 1-3, but no major announcements are on the horizon. The key catalyst remains a letter of intent from the U.S. Department of Commerce for a potential $100 million award over three years to accelerate its superconducting quantum computing research and development. However, the letter is non-binding, and the company has cautioned about uncertainties regarding final terms, funding timing, and potential shareholder dilution.
Rigetti reported first-quarter revenue of $4.4 million and an operating loss of $26.0 million. As of March 31, the company held $569.0 million in cash, cash equivalents, and available-for-sale investments. CEO Subodh Kulkarni has emphasized disciplined execution as the company works to improve system fidelity and scale.
On the product front, Rigetti's Cepheus-1-108Q processor, featuring 108 qubits, is now generally available on its own platform as well as Amazon Braket, Microsoft Azure Quantum, and qBraid. The processor is built from twelve 9-qubit chiplets, showcasing the company's modular approach to scaling quantum systems.
Looking ahead, the market will test whether buyers step back into high-growth tech after the rate-driven sell-off. If yields continue to rise or weakness persists in peers like IonQ and D-Wave, Rigetti shares could remain under pressure. Conversely, a stabilization in the Nasdaq could refocus attention on the company's government funding prospects and hardware roadmap.
