In a surprising and unpredictable development, Microsoft (MSFT) has unveiled its first quantum computing chip, Majorana 1. This chip, featuring a “topological core architecture,” promises to change the tech world and accelerate the timeline for commercialized quantum systems. It has also reignited investor enthusiasm in quantum computing stocks, causing a stir in the market and carrying other quantum stocks such as Rigetti (RGTI) and D-Wave (QBTS) upwards. However, after the initial excitement, RGTI and QBTS returned some of it back.
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What Is Majorana 1?
Microsoft claims that Majorana 1’s architecture could fit a million qubits on a single chip, potentially accelerating the timeline for practical quantum computing applications. If true, this would be a crucial step forward and could catapult Microsoft ahead of competitors like IBM (IBM) and Google (GOOGL) in the quantum race.
According to Microsoft, the Majorana 1 chip could drastically shorten the timeline for practical quantum computing from decades to a few years. Its architecture offers a clear path to fitting a million qubits on a single palm-sized chip, surpassing current quantum processors. Additionally, using topological qubits promises more stable and reliable quantum operations, addressing qubit instability and error rates.
The Majorana 1 chip’s commercial potential is vast. For instance, in the field of environmental science, MSFT’s chip it could improve the ways we capture carbon and help remove tiny plastic particles from the environment. In healthcare and biotechnology, it could speed up the development of new medicines and provide better models to treat diseases like cancer and Alzheimer’s.
Early Movers Advantage?
When and if Microsoft’s Majorana 1 quantum chip reaches its potential of 1 million qubits on a single chip, the financial impact for the company could be mouthwatering. It could potentially dominate the quantum computing market, which is projected to grow to $12.62 billion by 2032, with a CAGR of 34.8%. With such advanced technology, Microsoft could capture a significant slice of this market as a first mover. Microsoft could add its quantum computing power to its Azure cloud services, letting companies use quantum computing through the cloud.
This could attract businesses from different industries and bring in steady income. The quantum computing improvements could also improve Microsoft’s other products, especially in AI and machine learning, which might increase sales across all their products.
Is Microsoft a Buy, Sell, or a Hold?
On Wall Street, Microsoft is considered a Strong Buy, with an average price target of $510.38, implying a 25.03% upside potential.
