Rigetti Computing's stock is overvalued and facing tough competition, despite temporary surges driven by industry news. Click here to read why RGTI is a Strong Sell.

Rigetti Computing (NASDAQ: RGTI) stock posted explosive gains across 2024. The quantum computing company's share price closed out the year's trading up 1,449.4%, according to data from S&P Global Market Intelligence.

"Particularly because of the hype that is going on in the quantum computing space and some erroneous statements are being made, including by people in the industry, we have to tamp down some expectations," Rigetti Computing CEO Subodh Kulkarni told me on Yahoo Finance's Opening Bid podcast (video above; listen in below).

Rigetti stock is up 1,756% in the last year — but 74% overvalued. Investors who did not buy Nvidia stock before GenAI wave, fear missing out on quantum computing.

CEO Mark Zuckerberg fueled the sell-off in quantum computing stocks. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » *Stock prices used were the afternoon prices of Jan.

Adding to the pressure, D-Wave announced on Friday that the company was going to sell up to $150 million in common shares. That move would dilute the current shareholders of the company. Early stage companies often take advantage of price increases to raise capital to invest in their research and development.

Rigetti Computing is at the forefront of the quantum computing industry, but the company has a speculative stock valuation.

This is what's happening on Wednesday, as quantum computing investors cheer some kind words from Microsoft's strategic missions and technologies chief, Mitra Azizirad, who last night urged quantum investors to get ready, because "we are right on the cusp of seeing quantum computers solve meaningful problems and capture new business value."

Rigetti Computing (RGTI) surges over 20% on enthusiasm for quantum computing after Microsoft (MSFT) announced its "Quantum Ready" program for businesses. Seana Smith and Alexandra Canal take a closer look at the stock move on Catalysts.