Why Rigetti Computing Stock Skyrocketed 15.4% Today

Shares of Rigetti Computing (NASDAQ: RGTI) flew higher today, finishing up 15.4%. The jump came as the S&P 500 and Nasdaq Composite both gained slightly.

John Martinis, one of this year's Nobel Prize winners, told Bloomberg News that China has "caught up quickly" in the race to build a working quantum computer. He said he's now "worried that maybe we're nanoseconds ahead of them."

China is gaining ground

In his interview released on Wednesday, Martinis said that it was critical for the U.S. to maintain its edge, while also making it clear just how much that edge has shrunk. The researcher has visited the Trump White House several times -- with his most recently visit happening just a few weeks ago -- to discuss quantum technology, which the Trump administration believes is a matter of national security.

Image source: Getty Images.

Martinis said that after bolstering domestic artificial intelligence (AI) efforts, the White House is "now moving on to quantum." That statement helped renew speculation that the administration would take a direct stake in one or more quantum companies, as it has in semiconductor and critical mineral companies.

Rigetti is in the red

This may happen, but at this point it is pure speculation on the part of investors. What I do know is that Rigetti's nearly $9 billion market capitalization looks awfully inflated against the company's $7.5 million in sales over the last twelve months -- the same period in which it recorded a $350 million loss. I would not own Rigetti stock.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.