Why Rigetti Computing Stock Plummeted 22.3% in the First Half of 2025 -- What Comes Next?

Core Viewpoint - Rigetti Computing experienced significant stock sell-offs in the first half of 2025, despite a strong performance in 2024, with a 22.3% decline in share price while the S&P 500 rose by 5.5% [1][4]. Group 1: Stock Performance - The stock saw a massive increase of 1,449% in 2024 but faced substantial pullbacks in early 2025 as investors took profits [2][4]. - In July 2025, Rigetti's stock rebounded, gaining approximately 40% due to renewed excitement in the quantum computing sector and positive company news [7]. Group 2: Market Influences - The stock's decline was influenced by macroeconomic factors and volatility in growth-dependent tech stocks [4]. - Statements from Nvidia CEO Jensen Huang regarding the timeline for quantum computing commercialization initially led to sell-offs, but his later optimistic projections helped boost valuations in the sector [5][6]. Group 3: Company Developments - Rigetti announced achieving 99.5% median 2-qubit gate fidelity on its modular 36-qubit system and plans to launch this system on August 15, 2025, along with a 100-qubit-plus chipset by year-end [8]. - The performance update and commercialization plans have generated excitement among investors, contributing to the stock rally [8]. Group 4: Valuation Insights - Rigetti is currently valued at approximately 554 times this year's expected sales, indicating a high-risk, growth-dependent valuation [9].