Quantum computing stocks leap on Microsoft’s new chip reveal

Published 19/02/2025, 17:40
© Reuters.

Investing.com -- Shares of quantum computing companies surged today following Microsoft’s (NASDAQ: NASDAQ:MSFT) announcement of a groundbreaking quantum chip, Majorana 1. IONQ saw a 2.6% rise, Quantum (NASDAQ:QMCO) Computing climbed 8.6%, D-Wave Quantum increased by 8.2%, and Rigetti Computing advanced 6%.

The driver behind this market movement is Microsoft’s unveiling of Majorana 1, which the company touts as the world’s first quantum chip utilizing a novel Topological Core architecture aimed at expediting the realization of quantum computers capable of addressing industrial-scale challenges within years rather than decades.

Microsoft’s Majorana 1 is powered by the world’s first topoconductor, a revolutionary material that can manipulate Majorana particles to produce more stable and scalable qubits—the fundamental units of quantum computers. The company compares this innovation to the impact of semiconductors, which enabled the development of modern smartphones, computers, and electronics. With topoconductors, Microsoft envisions quantum systems that could eventually scale to a million qubits and solve some of the most intricate problems faced by industries and societies.

Chetan Nayak, a Microsoft technical fellow, likened the development to the invention of the transistor for the quantum age. "We took a step back and said ’OK, let’s invent the transistor for the quantum age. What properties does it need to have?’" Nayak explained. "And that’s really how we got here – it’s the particular combination, the quality and the important details in our new materials stack that have enabled a new kind of qubit and ultimately our entire architecture."

The announcement has clearly resonated with investors, as evidenced by the uptick in stock prices for companies in the quantum computing sector. The optimism seems to stem from the potential of Majorana 1 to transform the quantum computing landscape by providing a more robust and scalable approach to quantum computing.

The positive market response underscores the significance of advancements in quantum computing technology and its potential applications across various fields, from material science to cryptography. As Microsoft pushes the boundaries of quantum computing, the industry watches closely, with investor confidence in related stocks reflecting the high expectations for this emerging technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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