• Microsoft unveiled its Majorana 1 quantum chip, claiming it is less prone to errors and backed by evidence set to be published in Nature.
  • Quantum computing stocks surged, with D-Wave Quantum (QBTS.N) gaining 11.1% and Rigetti Computing (RGTI.O) rising 6.9%.

Quantum computing stocks saw a notable rise on Thursday following Microsoft's unveiling of its latest quantum chip, Majorana 1.

The new chip, which Microsoft claims is less prone to errors than its competitors, has reignited discussions about the technology’s timeline for mainstream adoption.

The company backed its claims with evidence from a scientific paper set to be published in the journal Nature.

Quantum computing has long been heralded for its potential to take traditional systems millions of years to perform calculations.

If successfully implemented, it could also disrupt existing cybersecurity frameworks.

In response to Microsoft's announcement, shares of key players in the quantum computing space saw significant gains. IonQ (IONQ.N) rose 2.1%, Rigetti Computing (RGTI.O) climbed 6.9%, and D-Wave Quantum (QBTS.N) surged 11.1%.

Smaller peers also experienced positive movement, with Quantum Corp (QMCO.O) increasing by 2.6% and Quantum Computing (QUBT.O) advancing 4.5%.

Meanwhile, Microsoft’s (MSFT.O) stock edged up 0.5%, while Nvidia (NVDA.O) saw a modest 0.3% increase.

The debate over the timeline for quantum computing’s viability has intensified among industry leaders.

Microsoft, along with Alphabet (GOOGL.O) and IBM (IBM.N), remains optimistic about the technology’s practical applications being closer than previously anticipated.

This contrasts with the outlook of Nvidia CEO Jensen Huang, who in January stated that quantum computing was still two decades away from overtaking AI chips, which currently dominate the industry.

Quantum computing stocks suffered a setback in early January following Huang’s remarks, leading to monthly losses that halted a year-long rally.

Despite rising threefold last year, these stocks have since experienced declines ranging between 18% and 70% in 2024, underperforming the tech-heavy Nasdaq as well as Microsoft and Nvidia.

Edited By Annette George