Microsoft’s Major Quantum Breakthrough: Is the Stock a Buy?

Microsoft’s Major Quantum Breakthrough: Is the Stock a Buy?


Innovation is pouring out of the big technology companies. From hand-controlled augmented reality glasses at Meta Platforms, self-driving car commercialization at Alphabet, and robot-controlled warehouses at Amazon, these companies keep extending their technological superiority over the competition, laying the groundwork for future growth.

Microsoft (NASDAQ: MSFT) may have the most impressive recent announcement with its breakthrough quantum computing chip called Majorana 1. This breakthrough gets the world closer to quantum commercialization due to the company’s major materials science breakthrough and could revolutionize the cloud computing market.

Does that make Microsoft stock a buy today?

Without getting into the science weeds, here is a brief explanation of Microsoft’s Majorana 1 quantum computing chip. Traditional methods of building quantum computers made the systems extremely unstable, meaning they would likely never be used except in closed research environments. Microsoft invented a new type of material called a topoconductor, which they believe solves this issue and will allow them to scale up a quantum computer chip to a much larger size while also maintaining operational stability. Eventually, this could bring quantum computing to the masses.

Like transistors with traditional computers, this breakthrough from Microsoft could lead to a step change in growth for the quantum computer market. Why is this so exciting? Because of how powerful a scaled quantum computer could be. With even just a few quantum bits (qubits), these computers can solve highly complex problems that a traditional computer would take years to solve. It could greatly reduce computing costs — especially in the cloud computing market — enabling even more growth for technologies like artificial intelligence (AI) and autonomous vehicles.

One of the largest bottlenecks to implementing advanced digital tools around the globe is computing costs. New AI tools require immense levels of spending on data centers in order to operate, not to mention things like traditional cloud computing, video streaming, and advanced smartphones. Microsoft alone is set to spend $80 billion on capital expenditures in 2025 related to AI, and it is just one of many players in the space. Over the next few years, there will likely be trillions of dollars spent on data centers cumulatively across the technology sector, especially if you include China.

That is why quantum computers could be so valuable — they could make this computing much more cost-efficient. Developers could bring advanced AI tools to billions of people, work on advanced biotechnology and simulation problems that take ages for traditional computers to solve, and accomplish even more with these new technologies. It’s exciting stuff, that’s for sure.


2025-03-02 23:32:00

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