Microsoft (MSFT) has announced a new microchip that it plans to launch in 2029 for use in quantum computers.
Management at Microsoft said that the quantum computing chip is being developed with the assistance of artificial intelligence (AI). Called “Majorana 2,” the microchip uses lead-based materials instead of the aluminum superconducting wires employed by rivals such as Alphabet (GOOGL) and IBM (IBM).
Microsoft said it selected lead, which is a larger atom, using AI tools created for materials science applications. The Majorana 2 chip achieved a 1,000-fold improvement in certain performance metrics compared to earlier quantum computing microchips, according to Jason Zander, an executive vice president who heads Microsoft’s quantum division.
Microsoft’s cloud revenue. Source: The Fly
The Rise of Quantum Computing
Microsoft is increasing its investments in quantum computers as the technology moves from the theoretical stage to practical applications. Rival IBM recently said that it plans to invest a total of $10 billion in quantum computing.
At its annual Build developer conference, Microsoft said that its quantum computer strategy depends on quasiparticles called Majoranas. The company is racing to develop quantum systems capable of solving complex problems in areas such as medicine and cybersecurity.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 35 Buy and two Hold recommendations issued in the last three months. The average MSFT price target of $557.41 implies 21% upside from current levels.
