Key Points Rigetti’s stock has plunged 70% from its all-time high. It still looks overvalued in this frothy market. Rigetti Computing(NASDAQ: RGTI), a developer of quantum computing chips and systems, went public through a merger with a special purpose acquisition company (SPAC) four years ago. Its stock started trading at $9.75, set a record high of $56.34 last October, but now trades at about $17. Let's see why Rigetti pulled back, and why it could sink even lower this year. What does Rigetti Computing do? Unlike classical computers, which store their data in binary bits of zeros and ones, quantum computers can store those zeros and ones simultaneously in qubits. That difference allows them to process more data and perform certain tasks faster than their classical counterparts, but they're also larger, pricier, less accurate, and consume more power. That's why they're still primarily used for niche research projects rather than mainstream computing applications. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Newer quantum computing companies, such as Rigetti, are addressing those issues with cheaper and more scalable systems. Rigetti produces modular and non-modular quantum processing units (QPUs), installs them in its own quantum systems, and allows developers to create their own quantum algorithms on its cloud-based Quantum Computing Services (QCS) platform. By bundling its hardware and software, Rigetti is a full-stack quantum computing company that serves as a "one-stop shop" for companies investing in the nascent technology. Why could Rigetti's stock tumble in 2026? Rigetti's business strategy sounds promising, but it still generates most of its revenue from government and research contracts -- as well as its smaller cloud-based business -- rather than its sales