Quantum computing is an emerging field that promises to solve problems so complex that even the world’s most powerful supercomputers would need more time than the age of the universe to solve them. Rigetti Computing (NASDAQ:RGTI) lies at the center of this exciting narrative.
For a brief period, investors treated the company as the next big thing in artificial intelligence (AI). But soon after the stock became a phenomenon, reality struck. Now that the stock has fallen 66% from its all-time highs, here’s what smart investors need to understand before touching Rigetti stock.
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What does Rigetti Computing do and why should investors care?
Basically, Rigetti builds superconducting quantum processors. These chips leverage the principles of quantum mechanics to perform sophisticated calculations that classical computing systems fundamentally cannot.
The company sells access to its quantum systems through cloud-based infrastructure and also makes physical hardware for government agencies and research institutions. Rigetti stock went parabolic in late 2024 and throughout 2025, in a sector-wide frenzy sparked by AlphabetThe presentation of its Willow quantum chip.
As one of the few publicly traded pure-play quantum names, Rigetti became a vehicle for speculative investors who wanted exposure to the next AI mega-theme.
Rigetti’s financial results illustrate a harsh reality
Rigetti’s financial results are difficult to defend under any conventional valuation framework. In 2025, the company generated approximately $7.1 million in revenue, a modest decrease from the previous year. Meanwhile, net losses exceeded $216 million under generally accepted accounting principles (GAAP).
During the first quarter of 2026, the company showed signs of sequential improvement, with revenue of $4.4 million. However, operating losses for the quarter persisted.
Rigetti’s price-to-sales (P/S) multiple of 607 is not a rounding error. It means the expectation that one day the company will generate revenue commensurate with a company valued at $6.2 billion. Unfortunately, there is no short-term evidence to support this perspective.
Rigetti is a falling knife, not a bath to pounce on
There are other concerns with Rigetti beyond the company’s overall losses. First, insider selling has been an ongoing theme. This time last year, Rigetti CEO Subodh Kulkarni sold about 1 million shares near the stock’s peak for about $11 million, a move that could suggest the frothy valuation is disconnected from the underlying fundamentals.