Microsoft Unveils Majorana 1 Quantum Computing Chip, Boosting Industry Stocks
Quantum computing stocks saw a significant surge on Thursday following Microsoft’s unveiling of its new Majorana 1 chip on Wednesday. The chip is claimed to be less prone to errors than its rivals, according to a scientific paper to be published in Nature.
The advancement in quantum computing technology comes at a time when the industry is debating the timeline for its practical application. Microsoft’s move has provided evidence that the technology may be nearer to reality than previously thought, contrary to Nvidia CEO Jensen Huang’s statement in early January that quantum computing was two decades away from overtaking his company’s chips used in artificial intelligence.
Shares of quantum computing companies saw substantial gains: IonQ rose 2.1%, Rigetti Computing jumped 6.9%, and D-Wave Quantum advanced 11.1%. Smaller peers Quantum Corp and Quantum Computing also saw increases of 2.6% and 4.5%, respectively. Microsoft’s shares edged up 0.5%, while Nvidia inched up 0.3%.
The potential of quantum computing lies in its ability to perform calculations that would take today’s systems millions of years. Successful development of this technology could also have significant implications for current cybersecurity systems, potentially disrupting them.
Microsoft, along with Alphabet and IBM, is among the growing number of companies that believe in the nearing practical application of quantum computing. This belief is in contrast to the skepticism expressed by Nvidia’s CEO earlier this year, which had caused quantum computing stocks to lose between 18% and 70% in January, ending a year-long rally that had outperformed the tech-focused Nasdaq.
The development of quantum computing continues to be a topic of intense debate in the tech industry’s upper echelons, with companies like Microsoft pushing forward with innovations like the Majorana 1 chip.
