Why Rigetti Computing Stock Just Crashed
Key Points
Broadcom sparked a sell-off earlier this week, warning AI chip demand might not be growing as fast as investors hoped.
Rigetti stock has little to do with AI, but is selling off anyway.
- 10 stocks we like better than Rigetti Computing ›
I've got bad news and good news for Rigetti Computing (NASDAQ: RGTI) investors today.
Bad news first: Rigetti stock is plunging 11.6% through 11:30 a.m. ET Friday. And the good news?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
No bad news for Rigetti Computing
The good news is that there's no specific bad news behind the sell-off -- no earnings reports that missed targets, no analyst downgrades, not even so much as a lowered price target on Wall Street. Instead, Rigetti stock seems to be going down simply because everything tech is selling off today: Bitcoin (CRYPTO: BTC) is off nearly 5% so far this morning, Nvidia (NASDAQ: NVDA) shares are off a similar amount, while memory company Micron (NASDAQ: MU) is down even more.
Basically, what we're looking at here is just a "risk-off" day for the market.
What sparked it? The most likely catalyst seems to be worries over Broadcom's (NASDAQ: AVGO) earnings report Wednesday night. Broadcom spooked investors when it warned that sales of its artificial intelligence chips will "only" triple in Q3, and not grow even faster, as analysts had hoped.
And now everyone is panicking about everything tech, quantum computing stocks included.
So, is it safe to buy Rigetti stock?
Just knowing why Rigetti stock is selling off doesn't necessarily mean it's safe to buy it, however. As a technology and as an industry, quantum computing is still in its infancy and probably years away from being a profitable endeavor.
In the case of Rigetti, analysts polled by S&P Global Market Intelligence don't expect profits to arrive as far out as analysts are willing to make forecasts (which is 2030), with the company burning through hundreds of millions of dollars in cash along the way. Before buying this dip, make sure to check your risk tolerance first.
Should you buy stock in Rigetti Computing right now?
Before you buy stock in Rigetti Computing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rigetti Computing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,847!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,342,065!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 5, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
