Microsoft edged its way into the quantum computing conversation Tuesday by proclaiming that 2025 would be the year for its business customers to become “quantum-ready” by preparing their organizations for the eventual technological leap.
“We are at the advent of the reliable quantum computing era. And we are right on the cusp of seeing quantum computers solve meaningful problems and capture new business value,” it said in a blog post. “As we look toward the next 12 months, the pace of quantum research and development is only going to accelerate, making this a critical and catalyzing time for business leaders to act.”
Shares of quantum computing companies jumped in premarket trading. D-Wave Quantum rose 14%; Quantum Computing rose 11%; SEALSQ Corp rose 10%; Rigetti Computing rose 8%; Quantum Corp rose 7%; IONQ Inc. rose 4%.
Wall Street and the leaders of some of the most prominent tech companies have their doubts about the near-term prospects of quantum computing, but on Tuesday, the sector was powering ahead.
Shares of D-Wave Quantum, Rigetti Computing, Quantum Computing, and IonQ tumbled last week following remark from Nvidia CEO Jensen Huang, who said that quantum computers would take decades to become “very useful.” The stocks briefly recovered before sliding again last Friday, as Meta Platforms CEO Mark Zuckerberg said he saw quantum technology as “quite a ways off from being a truly practical paradigm.”
Some analysts are upbeat about quantum’s potential. B. Riley analyst Craig Ellis raised his price target on D-Wave stock to $9 from $4.50 on Tuesday while maintaining a Buy rating. In a research note, Ellis referenced comments made by D-Wave’s CEO in response to the “recent bellwether CEO market-moving remarks” and argued that D-Wave was already commercial.
D-Wave CEO Alan Baratz said in a statement last week that Huang’s remarks were “dead wrong,” particularly as they related to quantum annealing computers, and emphasized that D-Wave’s clients were already using the advanced technology.
Meanwhile, Benchmark analyst David Williams reiterated a $8 price target and Buy rating for the stock following the first customer purchase of an Advantage quantum computer from D-Wave. The sale “represents a major new revenue vector, but equally as important, a validation of accelerating market demand for quantum,” Williams wrote.
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