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We came across a bearish thesis on Rigetti Computing, Inc. (RGTI) on wallstreetbets Subreddit Page by Infinite_Risk_2010. In this article, we will summarize the bears’ thesis on RGTI. Rigetti Computing, Inc. (RGTI)'s share was trading at $8.05 as of March 11th.
A close up of an engineer typing at a quantum computing station in a modern office space.
Rigetti Computing (RGTI) remains far from commercial viability, with no clear path to a working quantum product. Despite claiming progress, the company’s CEO touts a mere 2x improvement in fidelity this year, while true commercial viability requires a staggering 100-million-fold accuracy gain—an insurmountable gap. Even if such advances were achieved, the industries quantum computing supposedly revolutionizes, such as AI, drug discovery, and cryptography, are not bottlenecked by computing power. The recent market chaos surrounding RGTI was triggered by NVIDIA’s Quantum Day announcement, which temporarily propped up quantum stocks after Jensen Huang and Mark Zuckerberg admitted practical quantum computing remains decades away. Microsoft jumped in with its “quantum ready for 2025” hype, conveniently coinciding with disappointing cloud sales, which impacted its spending on NVIDIA GPUs. This suggests a strategic marketing push rather than a technological breakthrough. Further pressure comes from CrowdStrike, which is expected to dismantle quantum’s only real use case—encryption breaking—by showcasing preemptive security solutions. With RGTI caught in a cycle of hype and unrealistic timelines, the stock looks primed for a steep decline making it a short candidate.
Rigetti Computing, Inc. (RGTI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held RGTI at the end of the fourth quarter which was 7 in the previous quarter. While we acknowledge the risk and 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 timeframe. 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 was originally published at Insider Monkey.