Shares of Rigetti Computing (RGTI 24.98%) soared on Monday, finishing up 25%. The spike came as the S&P 500 (^GSPC 1.56%) and the Nasdaq Composite (^IXIC 2.21%) gained 1.5% and 2.2%, respectively.
The quantum computing stock surged after JPMorgan Chase revealed plans to invest $10 billion in various industries and technologies under its broad "Security and Resiliency Initiative" aimed at boosting U.S. economic and technological leadership. Quantum computing was among the 27 areas targeted.
In the announcement, CEO Jamie Dimon said that American "security is predicated on the strength and resiliency of America's economy" and that the investments will help "modernize infrastructure, fortify supply chains, and implement policies that promote growth."
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Rigetti's stock is up more than 6,000% in the last year
Pure-play quantum computing stocks have exploded in the last year as enthusiasm grows for the developing technology. That enthusiasm has driven valuations for Rigetti and its peers to levels that don't make sense. There is no denying that the technology has great potential, but its maturity is likely much further away than many investors believe.
At this point, Rigetti's $17.8 billion market capitalization is divorced from reality; the company has trailing-12-month revenue of less than $8 million and is burning cash.
