Quantum computing stocks are surging again after Microsoft unveiled its Majorana 1 quantum chip

The stock prices of quantum computing companies are surging in premarket trading this morning after Microsoft unveiled a new type of quantum computing chip yesterday, the Majorana 1. Here’s what you need to know about Microsoft’s breakthrough and its impact on the stock prices of quantum computing companies. What is Microsoft’s Majorana 1 chip? Things can get very complicated when discussing anything about quantum computing because the technology involves quantum physics—never a straightforward subject to discuss. However, in brief, quantum computing is a burgeoning field of computing that uses the properties of quantum physics to carry out computations. In classical computing, classical computers—which include your Android phone, your MacBook, and today’s most powerful supercomputers that currently power AI platforms—operate using bits, each bit being a one or a zero. But Quantum computers operate using qubits. Due to the properties of quantum physics, a qubit can be a one and a zero at the same time, meaning quantum computers can carry out computations nearly infinitely faster than classical computers—provided they have enough quantum bits. Right now, most quantum computers have far fewer than 100 qubits, and experts think that a quantum computer will need to have at least a million qubits in order to easily process and solve complex problems (such as coming up with a cure for all cancers or creating self-healing materials). This current lack of qubit computing power is why many experts think practical quantum computers are still decades away—or at least they were. Yesterday, Microsoft announced that it has created a new type of quantum computing chip called the Majorana 1. The chip uses an entirely new form of matter, called a topoconductor, that makes it much easier to scale qubits. Right now, the Majorana 1 only has 8 qubits, but Microsoft says the chip’s topoconductor matter offers a path to fit a million qubits on a single chip.  Because of the Majorana 1, Microsoft now says that quantum computers that can solve meaningful, large-scale problems could be on the market in years, not decades. Quantum computing stocks surge The fact that Microsoft’s breakthrough seems to suggest we are just years and not decades away from a reliable quantum computer has lit a fire under quantum computing stocks this morning. If practical quantum computers are just years away, then quantum computing companies stand to start growing revenues and making profits much sooner than expected—at least, that’s the hope. And it seems that hope is causing some investors to buy into existing quantum computing shares. At the time of this writing, D-Wave Quantum Inc. (NYSE: QBTS), Quantum Computing Inc. (Nasdaq: QUBT), and Rigetti Computing, Inc. (Nasdaq: RGTI) are all up over 10% in premarket trading. IonQ, Inc. (NYSE: IONQ) is up around 4%. While those companies aren’t directly tied to the Majorana 1, it seems that their stock price jump is a case of “a rising tide lifts all boats.” If commercial quantum computing is closer than expected, companies operating in the space have a chance to gain sooner than once thought. But the stocks remain volatile While the four major public quantum computing companies are seeing their stock prices rise today in the hope that the quantum computing world is much nearer than once believed, it’s important to note that shares in quantum computing companies have been highly volatile over the past year. For example, while shares of QBTS are up 275% over the past 12 months as of yesterday’s stock market close, its share price has dropped 22% since the beginning of the year. Likewise, QUBT shares are up 784% over the past 12 months, but they are down over 51% since 2025 began.  RGTI shares are up 552% over the past 12 months but down 27% year-to-date.  IONQ shares are up over 215% over the last year but down over 18% since this year began. And lately, it is not uncommon to see the share prices in these companies surge or fall by double-digit percentages in a single trading session. The point is, there is a lot of excitement around quantum computing, but also a lot of speculation. Investors are looking for the next Nvidia—a company that can quickly go from being worth billions to trillions of dollars. While Microsoft’s latest chip advancement is a huge step forward for the industry, there remains no certainty on where quantum computing goes from here, or how quickly everyday usage of quantum computers arrive.