Down More Than 30% This Year, Is Rigetti Computing Too Cheap to Pass Up Right Now?

Industry Overview - Quantum computing is a rapidly growing area in technology with the potential to transform the tech world and drive significant growth [1] - The efficiency gains from quantum computing could address the increasing demands of artificial intelligence (AI) and energy consumption [5] Company Analysis: Rigetti Computing - Rigetti Computing is emerging as a prominent player in the quantum computing niche, despite facing struggles this year [2] - The company has seen its stock value decline over 35% since the beginning of the year, yet it maintains a market cap of nearly $3 billion [9] - Rigetti generated less than $11 million in sales last year, with operating expenses exceeding $74 million, indicating a challenging path to profitability [10] - The company's valuation is high, trading at over 180 times its trailing revenue, which raises concerns about its affordability given the associated risks [11] Market Sentiment and Future Outlook - A report from McKinsey suggests that achieving commercially viable quantum computing may not occur until 2035 or later, creating uncertainty for companies like Rigetti [6] - The long timeline for quantum computing to become mainstream means that Rigetti's advancements may not yield immediate results [7] - Investors are advised to approach Rigetti as a high-risk, high-reward investment, with the potential for significant long-term gains if the industry grows [12][13]