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 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.

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."

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.

Shares of Rigetti Computing are trading higher by 24.8% during Tuesday's session. The stock is rebounding after recent remarks by Jensen Huang and Mark Zuckerberg that cast doubt on quantum computing's timeline.

The company plans to leverage this technology to create a 36-qubit system using four connected chips by mid-2025, followed by a 100-plus qubit system later in the year. Financial position strengthens amid soaring valuation Rigetti's financial position was significantly boosted by a capital raise last November.

Therefore, Huang's prediction that quantum computers won't go mainstream for 15 to 30 years sounds reasonable. It took Nvidia about two decades for its gaming and professional vis

Rigetti Computing's technology roadmap aims to enhance its market position with significant milestones in 2025, including a 36-qubit and 100-qubit system.

The same stocks rallied earlier this week after Microsoft unveiled an initiative meant to familiarize business leaders with quantum systems.