D-Wave Quantum (QBTS 15.23%) stock is surging higher Wednesday. The company's share price was up 13.6% as of 2:30 p.m. ET and had been up as much as 16.2% earlier in trading.
D-Wave's valuation is climbing today after Microsoft unveiled its new quantum-computing chip. With today's gains, the quantum-computing specialist's stock is now up 292.5% over the last year.
Microsoft took the wraps off its new quantum-computing chip today, and the unveiling is powering valuation gains for D-Wave and other companies in the quantum industry. Microsoft's Majorana 1 chip is built on a new kind of architecture. It uses a new kind of conductor to observe and control Majorana particles, which are a type of particle identical to their own antiparticles.
By using its novel topocondcutor approach to control these particles, Microsoft expects to be able to solve some of the problems that arise with other quantum computing approaches. In turn, the chip could open the door for quantum computers to be able to tackle far more complex challenges.
While Microsoft's new quantum-computing technology highlights increasing competition in the space, it represents another meaningful step in the evolution of the technology and its progression toward more mainstream commercial uses. It's not exactly clear how Microsoft's initiatives in the space will wind up impacting D-Wave over the long term. However, the Majorana 1 chip seemingly bodes well for the eventual use of quantum computing for artificial intelligence (AI) and other applications.
Microsoft's chip news today follows D-Wave's announcement yesterday of a new hybrid-quantum application for the simulation and optimization of autonomous agriculture machines. The application, built through a partnership with Staque, is notable for being one of the first commercially available services built around quantum computing. So, while the technology remains in its infancy, the business is now starting to see some significant product rollouts.
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