What's Going On With Rigetti Computing Stock Monday?

Rigetti Computing, Inc. (NASDAQ:RGTI) is experiencing a downturn in its stock price on Monday. This decline is occurring as investors express concern over increased competition in the artificial intelligence (AI) sector, particularly from a new AI model developed by DeepSeek.

The Details: The newly introduced AI model, named DeepSeek R1, is designed to offer functionalities similar to that of OpenAI's widely recognized ChatGPT. One notable aspect of this model is its cost-effectiveness, having been developed at a remarkably low cost of less than $6 million.

Investor sentiment may be influenced by DeepSeek's announcement that it utilized around 50,000 Nvidia H100 GPUs in its model's development. This raises potential challenges for American technology firms that have heavily invested in GPUs, as they face competition from more cost-efficient alternatives.

Additionally, reports indicate that DeepSeek’s AI model has outshone OpenAI’s ChatGPT in various independent tests, further intensifying concerns among investors regarding Rigetti’s position in the competitive AI landscape. Analysts from Saxo remarked, "The new model is cost-effective and operates on less powerful chips. This advancement prompts questions about the high market valuations associated with leading AI companies such as Nvidia and the overall investment outlook for the AI supply chain."

How To Buy Rigetti Computing Shares

If you're considering purchasing shares of Rigetti Computing, you have several options. You can buy shares or fractional shares directly through a brokerage platform. Alternatively, investors might explore exchange-traded funds (ETFs) that include Rigetti stock. This method allows for broader exposure to the technology sector while diversifying one’s investment.

Rigetti Computing falls within the Information Technology sector. An ETF focused on this sector typically contains shares of various companies, enabling investors to track trends and movements that might impact their investment.

Price Action: As of now, Rigetti shares have declined by 6.52%, trading at around $12.34, according to recent market data.

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Rigetti, AI, Stock