Shares of Rigetti Computing (NASDAQ: RGTI) soared on Friday, finishing the day up 18.3%.
The major gain wasn't driven by company-specific news; rather, the quantum computing developer's stock was caught up in a broader tech rally.
NASDAQ: RGTI
Key Data Points
The market recovers
After a brutal four days of trading that saw the tech-heavy Nasdaq Composite lose nearly 4.5%, today marked a sharp reversal, with the index finishing the day up 2.1%. The sell-off was sparked by renewed fears of an artificial intelligence (AI) bubble, fueled by a round of big tech earnings revealing that the already staggering spending spree is accelerating.
Alphabet expects to spend between $175 billion and $185 billion on capital expenditures in 2026, roughly doubling the already hefty spend of 2025. Amazon followed with guidance for $200 billion in capex this year, up 60% from its previous $125 billion projection, while Meta and Microsoft have similarly ratcheted up their infrastructure budgets, with the collective spending by the major hyperscalers now projected to exceed $560 billion in 2026.
Should you buy Rigetti Stock?
Image source: Getty Images.
Rigetti faces a fundamental challenge that its fellow quantum computing pure-plays face too: the timeline to commercial viability is likely much further away than its valuation suggests. The company's more than $5 billion market capitalization assumes that breakthrough success is relatively close -- within a few years. There's plenty of reason to believe it will be much further away.
