Majorana 1: Can It Cement Microsoft’s Place in Quantum Computing?

Key Points

• Big tech giant Microsoft recently unveiled its latest quantum computing chip, Majorana 1.
• What are experts saying about this new technology? Is Microsoft now the front-runner in the quantum computing race?
• Does Majorana 1 have implications for other quantum names?

In December 2024, Alphabet NASDAQ: GOOG, Google's parent company, announced its new quantum computing chip. This started a frenzy of trading in pure-play quantum computing stocks like Rigetti Computing NASDAQ: RGTI and D-Wave NYSE: QBTS. Now, Microsoft NASDAQ: MSFT is following Google’s lead.

On Feb. 19, the tech giant revealed its latest quantum chip, Majorana 1. Some are dubbing this new chip a breakthrough in quantum technology.

So, does the release of Majorana 1 now make Microsoft a leader in quantum computing? How does the announcement affect how investors should view other quantum stocks? To answer these questions, investors must look into what the top minds in the field of quantum computing are saying.

Understanding Microsoft’s Quantum Approach: Topological Quantum

A qubit is a piece of quantum information, like how a bit is a piece of information in classical computing. Quantum computing faces a major issue: qubit instability. This instability comes from outside disturbances that cause errors in calculations. Quantum computers can, in theory, compute faster than classical ones. But if they have many errors, their results aren’t useful.

The main goal of quantum computing research is to limit or correct errors in these calculations. Companies are researching different methods to do this. One method of doing this is by essentially spreading the errors across thousands of physical qubits to create one logical qubit. This logical qubit is error-corrected and thus actually usable. However, using thousands of qubits to create just one that is usable is highly inefficient. This is the method that Google is using.

Microsoft’s approach is more about limiting errors before they happen. Microsoft aims to use topological qubits. Topological qubits rely on the existence of Majorana zero modes (MZMs). MZMs inherently spread quantum information, making it more difficult for small disturbances to result in errors.

Practically speaking, this type of quantum computing approach has more built-in error resistance. This reduction in the need to correct errors means that fewer physical qubits are necessary to create a logical qubit. If successful, this technology could create a drastically more scalable quantum computer.

What Are Experts Saying About Majorana 1?

Overall, Microsoft admits that its research has not yet confirmed the existence of MZMs. Jainendra Jain is a physicist at Penn State University. He pioneered a quantum theory that others later validated, winning them the 1998 Nobel Prize in Physics. He stated that the research "does not demonstrate a Majorana qubit but instead demonstrates the feasibility of a measurement that would be needed for a future computer based on Majorana particles."

As reported by Physics World, Winfried Hensinger, a physicist at the University of Sussex, said, “The peer-reviewed publication is quite clear [that it contains] no proof for topological qubits." Hensinger criticized Microsoft for not making this clear in its press release. Hensinger believes topological quantum computing is 20 to 30 years behind other methods.

According to Science Media Center, Paul Stevenson, a math and physics professor at the University of Surrey, thinks Microsoft lags behind its competitors in pursuing other quantum computing methods. He said Microsoft “so far has failed to demonstrate working devices while competitors have been building basic quantum computers for a few years now using other qubit technology."

What Does This All Mean for Microsoft and Other Quantum Stocks?

Ultimately, there are some key takeaways regarding the Microsoft Majorana quantum chip. First, the firm appears to be on a longer journey to create a quantum chip because its approach could outperform and scale better than other technologies in the future. Second, there is uncertainty about exactly how much progress the company has made in creating a topological qubit.

Microsoft will present the results that it says prove this at the Global Physics Summit of the American Physical Society in March. Lastly, this is still a significant advancement in quantum computing.

At this point, it is hard to say that Microsoft’s quantum chip announcement places it as a leader in the field. 

Due to uncertainty in its research and timeline for applicability, it's unclear whether this negatively affects other quantum names.

It seems other publicly traded quantum stocks take different approaches than Microsoft. It could be viewed as positive for other firms because experts believe Microsoft’s technology is further behind. Overall, the envelope is being pushed on quantum, but real applicability remains far off.