Rigetti Computing ( RGTI 24.98%) shares skyrocketed on Monday, closing the day with a 25% gain. This rally occurred as the S&P 500 ( ^GSPC 1.56%) and the Nasdaq Composite ( ^IXIC 2.21%) advanced by 1.5% and 2.2%, respectively.
The surge in this quantum computing company followed news that JPMorgan Chase intends to allocate $10 billion across a range of sectors and technologies as part of its comprehensive "Security and Resiliency Initiative," which is designed to reinforce America's economic and technological edge. Quantum computing is one of the 27 focus areas in this initiative.
During the announcement, CEO Jamie Dimon emphasized that the United States' "security relies on the robustness and resilience of its economy," adding that these investments are meant to "upgrade infrastructure, strengthen supply chains, and support policies that encourage economic expansion."
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Rigetti's share price has soared over 6,000% in the past year
Over the last year, stocks focused solely on quantum computing have seen dramatic increases as excitement for the emerging technology intensifies. This optimism has pushed Rigetti and similar companies to valuations that appear disconnected from fundamentals. While the promise of quantum computing is significant, its widespread adoption may be much further off than many investors anticipate.
Currently, Rigetti's market value stands at $17.8 billion, a figure that seems out of touch with reality; the company generated less than $8 million in revenue over the past twelve months and continues to operate at a loss.
