Shares of Rigetti Computing Inc (NASDAQ:RGTI) have retreated on Friday afternoon following a streak of upward movement earlier this week that was largely driven by retail investors and optimistic trends within the broader quantum technology sector. This shift in the company’s stock price unfolds within what market participants refer to as a "Holiday Gap," a phenomenon whereby trading volumes thin between late December and the New Year, often resulting in pronounced price fluctuations in smaller-capitalization stocks.
Earlier in the week, Rigetti's stock experienced a notable upswing backed by an intense wave of social media-driven enthusiasm centered on the company’s strategic roadmap targeting 2026. Investors showed particular interest in the company's ambitions to develop higher-qubit quantum systems alongside technology that significantly reduces error rates. This surge in retail investor sentiment was further bolstered by a halo effect stemming from the strong performance of comparable firms in the quantum computing sector, such as IonQ and D-Wave, which themselves saw share price advances following the achievement of key strategic objectives and affirmative analyst coverage.
Adding to Rigetti’s bullish narrative, Wedbush recently initiated coverage of the company with an Outperform rating and assigned a price target of $35. Analysts from Wedbush highlighted Rigetti’s advancements in chiplet technology and its vertically integrated manufacturing process as distinctive competitive advantages poised to support the company's growth and technological scalability.
Market strategists observe that the trading dynamics witnessed this week fit a recognizable pattern that often emerges in the equity markets during the holiday period. During this timeframe, institutional trading desks typically reduce activity, creating an environment where retail investors have a disproportionately larger impact on the prices of highly volatile, small-capitalization stocks. While retail buyers earlier embraced the stock on the optimistic premise that the so-called "quantum age"—characterized by practically viable quantum computing—could arrive by 2026, the stock’s drop on Friday suggests a deceleration of buying momentum as the holiday progresses.
Beyond Rigetti's specific performance, investors have noted an increasing trend of correlation between quantum computing stocks and those related to the space industry. Both sectors have demonstrated synchronized movements in recent market rallies and retractions. This convergence is largely attributed to their overlapping strategic significance in national defense priorities and shared inclusion in federal innovation initiatives. The Trump administration, in the lead-up to the 2027 fiscal year, expressly featured quantum technologies alongside artificial intelligence within the national research and development roadmap, accentuating their strategic importance.
Analysts such as David Williams of Benchmark, in his October commentary, praised Rigetti's modular system design for offering a competitive edge. He emphasized that this approach facilitates the integration of quantum chiplets necessary for building scalable systems that meet the demands of advanced national security and strategic technology applications.
While the stock experienced a decline during Friday’s session, data from Benzinga Edge indicated sustained robust investor engagement. The Momentum score, a quantitative measure of a stock's buying activity and price trends, remains elevated at 96.30, signaling that despite the retreat, there is significant positive investor interest underpinning the stock.
According to Benzinga Pro data, Rigetti Computing stock was observed to fall by 6.61%, pricing shares at $72.10 on Friday. Technical analysis reveals a critical support level near $22.90, which the shares tested within the trading day. Should this key support threshold be breached, the path may open for further price declines, potentially leading to a retest of the lower bounds of Rigetti’s 52-week trading range.
Overall, the price action surrounding Rigetti Computing this week offers a microcosm of the unique market mechanics impacting small-cap quantum computing stocks during holiday trading periods. The interplay between retail investor enthusiasm, institutional withdrawal, sector-wide thematic drivers, and strategic technology advancements coalesce to create dynamic but volatile trading environments for equities like RGTI.