Investors rotated out of high-growth tech stocks, including quantum computing, amid doubts over profitability and high valuations.
Rigetti Computing (NASDAQ: RGTI) shares declined 22.6% in July as investors grew cautious about unprofitable tech companies. The sell-off mirrored broader skepticism toward AI and quantum computing stocks, with semiconductor firms losing over $1 trillion in market cap collectively last month.
The company reported $9.5 million in revenue for the first half of 2026, against $41 million in R&D costs and a $54 million operating loss. Rigetti’s price-to-sales ratio of 444 far exceeds the tech sector average of 8, raising concerns about its valuation.
Market sentiment shifted as investors questioned whether heavy spending in AI, data centers, and quantum computing would yield returns. Rigetti’s stock remains volatile amid ongoing profitability challenges.