Nvidia's Quantum AI Initiative Sparks Rally in Rigetti Computing Shares

Rigetti Computing (RGTI) experienced a sharp valuation increase during Wednesday's trading session, with shares climbing 15.5% by midday ET. The surge occurred against a backdrop of modest gains in the broader market, with the S&P 500 and Nasdaq Composite rising 0.4% and 1.2%, respectively. The rally was triggered by a press release from Nvidia announcing the launch of the first suite of open-source quantum artificial intelligence (AI) models. This initiative is designed to help researchers and businesses develop quantum processors capable of running practical, useful applications, providing a tailwind for companies operating in the quantum space. Despite the current spike, Rigetti's long-term price action remains subdued. The stock is down approximately 13% across 2026's trading and has fallen roughly 66% from its lifetime high. This suggests that while short-term catalysts are present, the long-term recovery remains unproven. From a fundamental perspective, the stock remains a highly speculative bet. Rigetti is currently valued at approximately 285 times its expected sales for the year. While the support from Nvidia suggests an accelerated scaling path for the industry, the current valuation may already price in significant future growth, making the stock risky for investors entering at current levels.