After losing $8.3 in one trading session, Rigetti Computing's (RGTI, Financial) share price dropped by 45%, following Comments by Nvidia (NVDA, Financial) CEO Jensen Huang at CES 2025, warning that practical quantum computing maybe 15 to 20 years away. His remarks triggered a sell-off in the quantum computing industry that crushed the stock of Rigetti and peers, including IonQ.

• Warning! GuruFocus has detected 7 Warning Signs with RGTI.

Rigetti shares traded slightly higher in after-hours, rising 2.8% to $10.33. However, analysts remain doubtful about the stock's prospects. Speculative interest lifted Rigetti to a record high of $19.38 earlier this month. However, fears of overvaluation and the company's continuing revenue woes have remained. Forbes set Rigetti's 12-month price target to $5.20, suggesting another 49.1% downside from that date.

Further complicating investor concerns has been increased cash burn and the broader market volatility. Over the last year, volatility in its quantum computing stocks has grown from 22% to 35% a week. We see Rigetti's short interest ratio at 0.6, indicating modestly bearish sentiment in a calm trading market.

Both the long term potential and the near term risks of quantum computing are illustrated by the sharp decline. Investors are suggested to take the smart approach of keeping a close watchful eye on Rigetti's fundamentals and operational performance while they go through these challenges.