Why Rigetti Stock Fell 22% in July

Rigetti shares fell last month as investors questioned tech sector spending.

The company's revenue jumped 185% in the second quarter, but Rigetti's stock remains expensive and highly speculative.

Shares of Rigetti Computing (NASDAQ: RGTI) fell 22.6% last month, according to data provided by S&P Global Market Intelligence , as investors grew impatient with unprofitable companies.

Investors rotated out of many AI stocks as skepticism spread that all the money being spent in the tech sector will eventually pay off, and some of that skepticism seems to have spread to quantum computing stocks as well.

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Here's what happened with Rigetti in July and why the stock will likely remain volatile.

Technology investors scrutinized their investments last month, and many trimmed their positions as they worried that all the money companies are spending on artificial intelligence, data centers, and quantum computing will prove worthwhile.

For example, semiconductor stocks were especially shunned last month, with 20 leading semiconductor companies losing more than $1 trillion in cumulative market cap.