Rigetti Computing’s Rollercoaster Ride: Cramer Weighs In on Quantum Computing’s Struggles

In the fast-evolving world of quantum computing, Rigetti Computing, Inc. (NASDAQ: RGTI) has captured attention—though not always for the right reasons. Jim Cramer recently discussed quantum computing stocks during a Squawk on the Street segment on CNBC, raising concerns about the sector’s current and future prospects. While stocks like Rigetti soared in 2024, their rapid rise has been matched by sharp declines, leading to mixed investor sentiment.
Cramer first highlighted the surge in quantum computing stocks, triggered by the announcement of the Willow quantum computing chip by a tech giant. However, he expressed skepticism about the technology’s near-term viability. Citing AI CEO Jensen Huang, Cramer noted that quantum computing currently serves a limited purpose, primarily for small form-factor applications. He also critiqued the sector’s lagging revenue generation and high-risk nature, likening some quantum companies to an “illusion” and warning investors to be cautious.
Rigetti, a designer of quantum computing processors and provider of cloud-based quantum services, is a prime example. The company’s stock gained an astonishing 1,400% in 2024 but has since experienced a sharp 57% decline year-to-date. Cramer pointed out that Rigetti’s struggles were not surprising, noting that the company had conducted a major share offering at a low price point just to raise funds, while its revenues had remained stagnant.
“Rigetti was a $2 stock a few months ago, and now it’s fighting for survival,” Cramer remarked, underscoring the financial challenges facing the company. Despite this, Rigetti is still among the top quantum computing firms being discussed by investors, ranking 20th in Cramer’s list of stocks.
While the quantum computing space is undeniably exciting, Cramer emphasized that investors should exercise caution, especially given the sector’s volatility and lack of solid profits. He warned that despite the promise of future innovations, quantum computing’s widespread commercial application is still far off, making it a risky bet for those looking for short-term returns.
As for Rigetti, while it has potential, the company’s current challenges make it a less attractive option compared to other AI and quantum computing stocks with more immediate growth potential. In a market driven by high expectations and fluctuating stocks, Cramer’s cautionary stance suggests that investors should tread carefully when dealing with emerging technologies like quantum computing.