Shares of Rigetti Computing (RGTI) rallied more than 10% on Wednesday as investors felt comfortable buying quantum computing stocks on their latest dip.
Rigetti shares have been fighting for support at the $7.50 level for the last two weeks. That price level has held considerable support and resistance in the past, dating back to December of 2024 making it a critical price for Rigetti to hold.
Despite the recent support of $7.50. Almost 60% lower than its highs reached in January. The move comes as investors have shifted into a risk off investing mode, Resulting in massive declines among the quantum computing names.
Shares of IonQ, Inc. (IONQ), D-Wave Quantum Inc. (QBTS) and Quantum Computing Inc. (QUBT) also saw their prices surge on Wednesday as long-term investors look to add positions in these stocks.
Analysts from Needham reiterated their “Buy” rating on Rigetti Computing stock on Monday while upgrading their price target. Needham raised their price target to a Wall Street Street high target of $17. That target implies a 101% upside potential from today’s price level.
That long-term view of the stock should see some challenges over the next 3-6 months as investors have turned their attention to the market’s uncertainty. The shift in sentiment has seen speculative issues like Rigetti fall out of favor for lower risk “safe harbor” stocks.
Rigetti’s 50-day moving average shifted into a bearish trend two weeks ago as the stock dropped below $10. That negative momentum indicator suggests that the stock may test the $5 level over the next 4-6 weeks.
Despite the shorter-term correction phase, Rigetti maintains a long-term bullish outlook as the stock remains above its 20-month moving average.
Our long-term price target for Rigetti remains at $20.
