Does Microsoft's Huge Quantum Computing News Mean It's Time to Sell IonQ?
Microsoft (NASDAQ: MSFT) made headlines when it recently announced its Majorana 1 quantum computing chip, which utilizes a new state of matter to perform quantum computing tasks. This is a big breakthrough for Microsoft, especially because it thinks it can scale this chip to have 1 million qubits (the quantum computing information storage unit). This is a key threshold as Microsoft estimates how many qubits will be required to perform commercially viable tasks. This is a clear warning shot across the bow of others in the quantum computing realm, and IonQ (NYSE: IONQ) is no exception. However, was this breakthrough enough for investors to move on from IonQ? Or does it still have a place in investment portfolios?Microsoft announced the Majorana 1 chip on Feb. 19. At the time of writing, IonQ's stock had declined by around 8% since the announcement, while Microsoft's had declined by around 3%. If Wall Street was concerned that IonQ was going to be wiped off the face of the planet by this breakthrough, then IonQ's stock would have sold off by a lot. However, most of the sell-off is centered around tech stocks, so this 8% decline by IonQ's stock is better correlated to a broader sell-off than Microsoft's announcement.Continue reading
Microsoft (NASDAQ: MSFT) made headlines when it recently announced its Majorana 1 quantum computing chip, which utilizes a new state of matter to perform quantum computing tasks. This is a big breakthrough for Microsoft, especially because it thinks it can scale this chip to have 1 million qubits (the quantum computing information storage unit). This is a key threshold as Microsoft estimates how many qubits will be required to perform commercially viable tasks.
This is a clear warning shot across the bow of others in the quantum computing realm, and IonQ (NYSE: IONQ) is no exception. However, was this breakthrough enough for investors to move on from IonQ? Or does it still have a place in investment portfolios?
Microsoft announced the Majorana 1 chip on Feb. 19. At the time of writing, IonQ's stock had declined by around 8% since the announcement, while Microsoft's had declined by around 3%. If Wall Street was concerned that IonQ was going to be wiped off the face of the planet by this breakthrough, then IonQ's stock would have sold off by a lot. However, most of the sell-off is centered around tech stocks, so this 8% decline by IonQ's stock is better correlated to a broader sell-off than Microsoft's announcement.
