What’s Going On With Rigetti Computing Stock Monday?

Rigetti Computing, Inc. RGTI shares are experiencing a decline on Monday as broader trends in AI and quantum computing stocks come under pressure, primarily due to concerns regarding competition from DeepSeek, a startup that recently introduced a new artificial intelligence model.

The New AI Model: The model, named DeepSeek R1, is claimed to deliver functionalities akin to OpenAI's ChatGPT but at a significantly reduced cost, having been developed for less than $6 million.

Investors appear to be reacting to DeepSeek's assertion that it utilizes around 50,000 Nvidia H100 GPUs, which raises questions for American tech firms that have heavily invested in such GPUs. This development signifies a shift in the competitive landscape, causing unease among investors.

Moreover, the Chinese startup's DeepSeek R1 model has reportedly outperformed OpenAI's ChatGPT in various independent tests. This strong performance in third-party evaluations is likely contributing to growing concerns regarding Rigetti Computing's market position in the evolving AI landscape.

According to analysts at Saxo, "The new model is cost-effective and operates on lower capacity chips." They suggest that this breakthrough creates uncertainties regarding the lofty valuations associated with leading AI companies like Nvidia and raises broader questions about the investment viability across the entire AI supply chain.

Investing in Rigetti Computing: For those interested in obtaining shares of Rigetti Computing, there are multiple avenues available. Investors can directly purchase shares or fractional shares through brokerage platforms. Alternatively, access to Rigetti shares may also be available via an exchange-traded fund (ETF) that includes companies in the same sector.

As Rigetti operates within the Information Technology sector, participating in an ETF can provide investors with exposure to a range of businesses within that segment, thus allowing for the tracking of industry trends.

Current Stock Performance: As of now, Rigetti shares are trading at 6.52% lower, currently priced at $12.34 according to recent data.

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Rigetti, Stock, Competition