WASHINGTON: 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 gained 2.1 per cent, Rigetti Computing rose 6.9 per cent and D-Wave Quantum advanced 11.1 per cent, while those of smaller peers Quantum Corp added 2.6 per cent and Quantum Computing climbed 4.5 per cent.
Google close to picking sites in India for first retail stores outside US
Shares of Microsoft edged up 0.5 per cent, while Nvidia inched up 0.3 per cent.
When quantum computers will arrive has become a topic of debate in the upper echelons of the tech industry. Microsoft along with Alphabet and IBM 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 as well as Nvidia and Microsoft.
They have lost between 18 per cent and 70 per cent so far this year, compared with last year when they had risen at least three-fold.