Quantum computing stocks

rallied on Thursday, February 20, after software giant Microsoft revealed its new Majorana 1 chip, reigniting the debate about the technology's timeline. Microsoft asserts this chip demonstrates that practical quantum computing is "years, not decades" away, contradicting recent claims from

Nvidia CEO Jensen Huang

that it's still two decades off. This announcement aligns Microsoft with Google and IBM, who also predict a much sooner arrival for widespread quantum computing applications.
The Majorana 1 chip, nearly two decades in development, utilizes the elusive Majorana fermion, a subatomic particle theorized in the 1930s. This particle's unique properties make it less susceptible to the errors that plague current quantum computers, a significant hurdle in the technology's advancement. Microsoft's claims of reduced error rates are supported by a forthcoming paper in the journal Nature.

Quantum computing

promises to revolutionize computation by performing calculations currently impossible for even the most powerful supercomputers. This potential includes the ability to crack existing encryption methods, posing both opportunities and risks for cybersecurity. The core challenge lies in controlling qubits, the quantum equivalent of classical bits, which are highly unstable and error-prone.

The contrasting timelines offered by tech leaders have created uncertainty in the market. Nvidia's CEO's January prediction of a two-decade timeline caused turmoil for quantum computing stocks, wiping out billions in market cap -- ending a year-long rally. The stocks of Quantum Computing companies witnessed monthly losses in January, ending a year-long rally that saw them outperform the tech-focused Nasdaq, as well as that of Apple, Nvidia and Microsoft.

During Nvidia's analyst day at CES trade show in Las Vegas (US) in January this year, CEO Jensen Huang said that “very useful” quantum computers are likely decades away and may take 15-30 years. He told analysts that quantum computers would need 1 million times the number of quantum processing units, called qubits, that they currently have. This one sentence of his sent shock waves, throwing stocks of Quantum computing companies in a free fall. So much so that the selling frenzy even took toll on companies with similar names: Quantum Corp, a data management company, gained more than 670% last year, only to drop about 60% so far in 2025. Quantum-Si Inc, a life science company developing protein sequencing platforms, too witnessed a fall.
Nvidia CEO's comments contrasted with Google's assertion that commercial applications are only five years away, and IBM's projection of large-scale quantum computers by 2033. Microsoft's new chip and its accompanying claims now bolster the argument for a more imminent arrival of practical quantum computing.