Rigetti Computing (RGTI) Stock Takes a Hit: Quantum Computing Race Heats Up

TLDR:

Rigetti Computing (RGTI) stock dropped 10.92% to $10.52 on Tuesday following news about Chinese competitor Origin Quantum’s 72-qubit prototype

Origin Quantum reported over 20 million remote visits to their prototype quantum computer, causing concern among investors

RGTI currently has an 84-qubit Ankaa-3 system and plans to release a 36-qubit system by mid-2025, followed by a 100+ qubit system by year-end

Other quantum computing stocks like D-Wave (QBTS) and IonQ (IONQ) also experienced declines on the same day

Despite the drop, Wall Street maintains a “Strong Buy” rating on RGTI with a mean target of $11 and high target of $17

igetti Computing (NASDAQ: RGTI) stock fell 10.92% to close at $10.52 on Tuesday, following news about Chinese quantum computing startup Origin Quantum’s technological progress. The decline came as part of a broader reaction in the quantum computing sector.

Origin Quantum announced that its prototype quantum computer, named “Wukong,” achieved over 20 million remote visits. The machine features 72 working qubits with fully independent intellectual property, marking a notable advancement in China’s quantum computing capabilities.

The news affected other players in the quantum computing space, with companies like D-Wave (QBTS) and IonQ (IONQ) also experiencing share price declines during Tuesday’s trading session. The market reaction reflected investor concerns about increasing global competition in the quantum computing sector.

Despite the market’s reaction, Rigetti Computing maintains a technological edge with its existing 84-qubit Ankaa-3 system, surpassing Origin Quantum’s current capabilities. The company has outlined plans to release a 36-qubit system based on four 9-qubit chips by mid-2025.

Rigetti’s development roadmap includes the planned release of a system with over 100 qubits by the end of the year. This system aims to achieve a targeted 2x reduction in error rates from current levels, demonstrating the company’s focus on both capacity and accuracy improvements.

The company reported revenue of $2.4 million in its latest quarter, while Origin Quantum remains pre-revenue. This financial performance distinction highlights the different stages of development between the established U.S. company and the Chinese startup.

Wall Street analysts maintain a “Strong Buy” rating on RGTI shares, with a mean price target of $11, suggesting a 5% upside from current levels. The high target of $17 indicates some analysts see potential for up to 63% growth from the current share price.

Partnerships

Rigetti’s partnerships with major technology companies, including Nvidia and Microsoft, remain in place. These collaborations represent ongoing institutional confidence in the company’s technological capabilities and market position.

The stock’s current price represents a more than 50% increase from its recent low, even after Tuesday’s decline. This overall upward trend suggests sustained investor interest despite periodic market volatility.

Trading volume remained robust during Tuesday’s session, with the stock meeting minimum market requirements of $5 million in daily trading volume and maintaining a market capitalization above $2 billion.

Origin Quantum’s development has drawn comparisons to DeepSeek, another Chinese startup that impacted U.S. technology stocks in January 2025 with its AI model announcement. However, market observers note that DeepSeek’s initial market impact proved temporary.

Similar to the DeepSeek situation, some analysts suggest that Origin Quantum’s impact on established quantum computing companies may be overstated, pointing to Origin Quantum’s status as a private company not directly competing for public investor capital.

Rigetti’s planned quantum computing advancements for 2025 include both the mid-year 36-qubit system release and the year-end 100+ qubit system launch, providing concrete development milestones for investors to monitor.