Over the past few months, quantum computing has come sharply into focus as one of the tech sector’s next frontiers. As the artificial intelligence (AI) boom has sparked a need for advanced computational power, experts have increasingly touted quantum as a potential solution.
Although the technology is still evolving and its full capabilities remain unknown, it is impossible to ignore the fact that the quantum computing revolution is approaching. The only question is when will it fully arrive, a topic on which expert opinions remain mixed.
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Nvidia (NVDA) Jensen Huang recently predicted that practical quantum computing systems are at least 15-30 years away. Experts such as D-Wave Quantum QBTS CEO Dr. Alan Baratz quickly disputed this claim, arguing that his company’s work in the quantum field renders Huang’s hypothesis incorrect.
One of the tech sector’s biggest names announced an important breakthrough in quantum computing research this week.
The world of quantum computing may be on the verge of another leap
In November 2024, quantum computing stocks surged as investor enthusiasm fueled speculation that the tech sector had found its newest growth market. Since Huang’s comments, though, this momentum has cooled off as companies adjust to more typical trading patterns.
However, investor interest in quantum computing may be about to spike again. Microsoft (MSFT) has announced that one of its research teams has created a new quantum chip that it claims can revolutionize the field by leveraging a new state of matter.
Titled the Majorana 1, this new chip is not yet available for sale, but according to the company, it can underpin the world’s most powerful quantum computing systems.
What is quantum computing? At its core, it is an advanced type of computing that performs computational tasks and solves problems significantly faster than classical systems. This is accomplished by utilizing quantum bits of information known as qubits, allowing the machine to perform at speeds that traditional computers cannot obtain.
According to Microsoft, Majorana 1 employs a “so-called topological superconductor—a material that isn’t a solid, liquid, or gas—to produce building blocks that can be scaled up into a powerful quantum computer.”
The chip is powered by the industry’s first Topological Core, which Microsoft describes as “incorporating error resistance at the hardware level, making it more stable.” In a statement released yesterday, Microsoft implied that it believes top conductors can do for quantum computing systems what the semiconductor did for smartphones and computers.
A breakthrough in quantum computing. Majorana 1 brings us closer to harnessing millions of potential qubits working together to solve the unsolvable—from new medicines to revolutionary materials—all on a single chip. #QuantumComputing #QuantumReady https://t.co/mpj8VwEQj0 pic.twitter.com/zlQoyoFURv
— Microsoft (@Microsoft) February 19, 2025
While this new chip isn’t commercially available yet and details about Microsoft’s plans are still emerging, the news has generated noticeable momentum for quantum computing stocks. Companies like D-Wave, Quantum Computing QUBT, and Rigetti Computing (RGTI) were all rising Thursday, significantly outpacing Microsoft stock.
Ken Mahoney, CEO of Mahoney Asset Management, views this development as a rebuttal against Huang’s comments on “the future of quantum computing.“
Discussing Microsoft’s progress, he notes, “They are aiming to build a quantum computer that can actually be used and implemented by the end of this decade, so we are looking at something that is 5 years away, not something like 30 as Huang had said.”
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While Mahoney states that his team believes in a “cautiously optimistic” approach when it comes to evaluating quantum computing stocks, other experts see Microsoft’s quantum breakthrough as giving it a clear edge.
Microsoft’s quantum breakthrough also comes with risk
Joe Tigay, Portfolio Manager of the Rational Equity Armor Fund, predicts that Microsoft is destined for significant growth if its quantum computing technology takes off, stating that the combination of quantum, AI and cloud technology could allow it to dominate the industry.
Tigay also predicts that Microsoft’s quantum edge could give it an advantage over Nvidia, noting that “Data centers will need a quantum upgrade down the road.”
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Microsoft’s progress in the quantum computing field could certainly help it rise in the coming year, this new innovation also poses risk. However, while the power of quantum systems is undeniable, these machines could also break traditional encryption methods such as error correction code (ECC), a technique often used to control and correct data transmission errors.
Marijus Briedis, CTO at NordVPN, provided further context on the risks that quantum computing advances may bring, stating:
“The superior processing power of quantum computers could enable them to decrypt information that was previously considered secure, posing a significant threat to personal privacy, corporate data, and national security.”
As the Microsoft Majorana 1 is still new, it is hard to determine exactly how likely these types of problems are to transpire. The company has yet to provide any details regarding how it might address these types of risks.
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