Quantum computing stocks rise as Microsoft's new chip heats up debate over technology (updated)

Quantum

20/02/2025 14:49

(Updates to after markets open)
       Feb 20 - Quantum computing stocks advanced on Thursday
after Microsoft launched a new chip that indicated the
technology is not "decades away" as stated by the top boss of AI
chip bellwether Nvidia.
    Microsoft unveiled its Majorana 1 chip on Wednesday and said
it is less prone to errors than rivals, while providing evidence
in a scientific paper set to be published in academic journal
Nature.
    Quantum computing holds the promise of carrying out
calculations that would take today's systems millions of years.
If successful the technology could also potentially disrupt
today's cybersecurity systems.
    Shares of IonQ  IONQ.N  gained 2.1%, Rigetti Computing
 RGTI.O  rose 6.9% and D-Wave Quantum  QBTS.N  advanced 11.1%,
while those of smaller peers Quantum Corp  QMCO.O  added 2.6%
and Quantum Computing  QUBT.O  climbed 4.5%.
    Shares of Microsoft  MSFT.O  edged up 0.5%, while Nvidia
 NVDA.O  inched up 0.3%.
    When quantum computers will arrive has become a topic of
debate in the upper echelons of the tech industry. Microsoft
along with Alphabet  GOOGL.O  and IBM  IBM.N  are in a growing
camp of companies that believe the technology's practical use is
nearer than previously imagined.
    Quantum computing stocks took a hit in early January when
Nvidia CEO Jensen Huang said the technology was two decades away
from overtaking his company's chips, which are the workhorses of
artificial intelligence.
    The stocks logged monthly losses in January, ending a
year-long rally that saw them outperform the tech-focused Nasdaq
 .IXIC , as well as Nvidia and Microsoft.
    They have lost between 18% and 70% so far this year,
compared with last year when they had risen at least
three-fold.   

 (Reporting by Johann M Cherian in Bengaluru; Editing by Arun
Koyyur)
 ((mailto:johann.mcherian@thomsonreuters.com))