Rigetti Computing (RGTI) stock experienced a 5.09% plunge in the Sunday night trading session, fueled by ongoing concerns about the company's lofty valuation relative to its growth potential in the emerging quantum computing market.
The slide comes as analysts and industry experts caution investors to temper their near-term expectations for the quantum computing industry. Despite Rigetti's ambitious plans to scale up its quantum computing systems and expand its cloud infrastructure platform, some analysts believe the company's current enterprise value of $3.7 billion is grossly overvalued considering its projected revenue of just $35 million in 2026.
While Rigetti has made notable strides, including the recent launch of its Novera QPU and the deployment of its 84-qubit Ankaa-3 quantum computing system, the long-term viability of its business model remains uncertain. Challenges such as high costs, technical hurdles, and the potential for slower-than-expected market adoption could hinder Rigetti's growth trajectory in the coming years.
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