Rigetti Computing Inc (NASDAQ:RGTI) shares are trading higher Wednesday. The stock is trading higher on continued momentum across the quantum space before pulling back. Here's a look at what you need to know.

What To Know: Rigetti Computing and other quantum stocks have rallied in recent weeks as excitement around the potential of quantum computing builds.

On Tuesday, Google unveiled a new quantum computing chip called "Willow" that reduces errors exponentially as it scales, marking a breakthrough in quantum error correction that has been pursued for nearly 30 years.

Google said in a blog post that the quantum chip performed a standard benchmark computation in under five minutes. That same computation would take one of today's fastest supercomputers 10 septillion years to complete.

Quantum computers are expected to be able to process much bigger volumes of data than traditional computers by using qubits instead of bits, which are limited to ones and zeroes. Being able to process higher volumes of data could potentially lead to more breakthroughs in critical research areas, which has sparked excitement about the potential of quantum companies.

With Rigetti Computing shares up more than 600% over the past three months, short sellers appear to be licking their chops. Rigetti shares appeared to turn lower on Wednesday after short-seller Citron Research said the valuation has grown to become "ridiculous."

"Buying $RGTI based on Google's quantum success is as misguided as believing every TikTok guitarist is the next Taylor Swift," the short seller said in an X post.

"When the hype fades, investors will recall $RGTI sold equity at $2 just two weeks ago, with more dilution to come rather than true quantum competitiveness."

Citron noted that even the most optimistic analysts have price targets below where the stock is currently trading. With the company still in "science-project mode," the valuation is way too high, the short seller said.

It's worth noting that notorious "Pharma Bro" Martin Shkreli also announced that he was shorting quantum stocks including Rigetti Computing Wednesday morning.

"It is not quantum's time," Shkreli said.

RGTI Price Action: Rigetti Computing shares were up 1.0% at $6.55 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nvidia.