Quantum Computing Stocks Waver After Microsoft Quantum Chip Rally

Shares of quantum computing companies wavered on Thursday after jumping yesterday on renewed investor interest in the nascent technology. 

Quantum computing stocks like Rigetti (RGTI), Quantum Computing (QUBT), and D-Wave Quantum (QBTS) climbed yesterday after Microsoft (MSFT) unveiled its first quantum computing chip. The stocks jumped again when markets opened on Thursday before paring their gains. Rigetti shares were up about 1% Thursday morning after jumping nearly 9% at the open, while Quantum Computing and D-Wave Quantum stocks were up about 1% and 3%, respectively.

Quantum computing stocks were thrust into the spotlight late last year when Alphabet (GOOGL) debuted its quantum chip, Willow, which it said could complete computations orders of magnitude faster than today’s most advanced computers. 

Experts have warned that, despite recent breakthroughs, useful quantum computers remain many years off. Nvidia (NVDA) CEO Jensen Huang said in early January that it would likely be more than 15 years before the world had “very useful” quantum computers. Google itself said Willow represented the second stage in its six-stage quantum computing roadmap.

However, Microsoft on Wednesday said its chip, Majorana 1, is “powered by a new Topological Core architecture” that could facilitate quantum computing “capable of solving meaningful, industrial-scale problems in years, not decades.”

The company said its novel architecture “offers a clear path to fit a million qubits on a single chip,” laying the groundwork for the development of a quantum computer that can do previously unimaginable things like “breaking down microplastics into harmless byproducts or inventing self-healing materials for construction, manufacturing or healthcare.”