"Instead of looking for the "next" artificial intelligence (AI) stock, some traders are turning to quantum computing stocks for big price moves. Among the best-known publicly listed quantum computing firms is Rigetti Computing ( NASDAQ:RGTI), and its stock is trending right now. There's even talk that AI technology king NVIDIA ( NASDAQ:NVDA) is getting involved in the quantum computing field. So, you may be ready to hit the "buy" button and load up on RGTI shares - but not so fast."
"You might have heard that AI stocks are in a bubble, but what about quantum computing stocks? Taking a look at Rigetti stock, we can detect the signs of a share-price bubble that's bursting before the technology has even had time to mature. I suspect that some traders missed out on the swift rise of AI stocks like NVIDIA stock, so they're seeking a second chance. They're hoping to get another ground-floor opportunity with quantum computing stocks such as RGTI."
"Don't get the wrong idea. Quantum computing will undoubtedly have important applications, and Rigetti will make strides in building ultra-powerful computers. As the company disclosed in its most recent quarterly financial press release, Rigetti "expects to deploy a 150+ qubit system by or around the end of 2026." Moreover, Rigetti has a tie-in with the almighty NVIDIA. Indeed, Rigetti CEO Subodh Kulkarni and his team are "excited to support NVIDIA NVQLink," which is NVIDIA's "new open platform for AI supercomputer-quantum integration.""
Traders are shifting attention from AI stocks toward quantum computing names seeking large price moves. Rigetti Computing (RGTI) experienced an extreme rally, rising from $1.25 to $58 in 12 months before retreating into the $30s. Market optimism may have priced in expected future growth, raising bubble concerns and potential near-term downturn. Rigetti plans to deploy a 150+ qubit system by around the end of 2026. Rigetti and NVIDIA are collaborating through support for NVIDIA NVQLink, an open platform for AI supercomputer–quantum integration. Investors remain cautious about stretched valuations despite technological progress.
Read at 24/7 Wall St.
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