Chart of Day: Revisiting Rigetti Computing (RGTI)
Crisis is creating opportunity in Rigetti Computing (RGTI), we said two weeks ago.
That was after Nvidia CEO Jensen Huang said that “very useful” quantum computers are likely decades away. Then, Meta Platforms’ Mark Zuckerberg said quantum computing was years away. “I’m not really an expert on quantum computing, but my understanding is that’s still quite a way off from being a very useful paradigm,” the CEO said, as quoted by CNBC. He added that many people think the technology is likely a “decade plus out.”
But the markets shrugged that off.
At the time, RGTI traded at $8.95. Today, after testing a high of $16.20, RGTI now trades at $13.33. From here, we’d like to see RGTI refill its bearish gap at around $20 next.
Helping, B. Riley Securities reiterated its buy rating on quantum stocks, like Rigetti Computing (RGTI) and D-Wave Quantum (QBTS), igniting a buy spree for both.
Plus, according to analysts at DA Davidson, “We believe Mr. Huang’s comments may have been somewhat self-serving,” the firm told Investor’s Business Daily. “Once quantum computing becomes powerful enough, it will likely replace some of the uses of GPU data centers with a much smaller footprint and much faster computation,” they added. “That means quantum computing is an existential threat to Nvidia, which it would then want to wish away.”
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies