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Microsoft's Majorana 1 Shakes Up the Quantum Realm: 3 Stocks to Watch
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Microsoft (MSFT - Free Report) has dramatically altered the quantum computing landscape with its groundbreaking Majorana 1 processor, positioning itself as the undisputed leader in this revolutionary technology. This watershed moment represents not just a scientific achievement but a compelling investment opportunity for forward-thinking investors in 2025.
The tech giant's quantum processing unit, powered by a Topological Core, stands as the first of its kind worldwide. What truly distinguishes this innovation is its unprecedented scalability —designed to support up to one million qubits on a single chip. This architectural breakthrough effectively solves the scaling problems that have historically hampered quantum computing advancements.
Microsoft's proprietary topoconductor materials enable the creation of topological superconductivity, transitioning quantum computing from theoretical possibility to commercial reality. The Defense Advanced Research Projects Agency has recognized this potential by selecting Microsoft for the final phase of its rigorous US2QC program, signaling strong confidence from America's premier research institution.
With eight topological qubits already functioning on a chip designed for one million, Microsoft is executing a clear roadmap toward fault-tolerant quantum computing within years rather than decades. Their measurement-based approach utilizing digital precision dramatically simplifies quantum error correction — a critical advancement that makes practical quantum computing viable.
For investors, Microsoft presents a unique opportunity to gain exposure to quantum computing's transformative potential. Applications span materials science, sustainable agriculture, and chemical discovery — multi-trillion-dollar markets poised for disruption. Traditional supercomputers simply cannot match quantum systems in modeling complex molecular interactions essential to next-generation industries.
Microsoft's integrated cloud services further position it to monetize quantum computing through Azure, creating an end-to-end solution from hardware to application delivery. As quantum computing transitions from research curiosity to commercial necessity, MSFT stands ready to capture substantial market share through its first-mover advantage.
This Zacks Rank #3 (Hold) company aims to enhance its competitiveness in the tech industry by integrating highly reliable logical qubits into Azure Quantum Elements. It promises a truly hybrid computing experience, combining cloud high-performance computing with advanced AI models and improved quantum-computing capabilities. The Zacks Consensus Estimate for MSFT’s fiscal 2025 earnings has moved up by 1.2% $13.1 per share in the past 30 days.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
1-Year Performance
Image Source: Zacks Investment Research
Other Stocks Boosting Competitive Strength in Quantum Computing
Per ResearchAndMarkets report, the global quantum computing market is estimated at $1.79 billion in 2025 and is expected to witness a CAGR of 31.64% to attain $7.08 billion by 2030. This implies bright growth prospects for tech giants, including Microsoft, International Business Machines (IBM - Free Report) , D-WAVE QUANTUM (QBTS - Free Report) and IonQ (IONQ - Free Report) , among others, competing to create machines that take advantage of quantum mechanics to promise speeds far faster than conventional silicon-based computers.
IBM: Leading the Quantum Computing Revolution
IBM is positioned to transform computing in 2025 with its groundbreaking quantum-centric supercomputer initiative. The company will integrate modular processors, middleware, and quantum communication while significantly enhancing circuit performance. For investors watching the quantum computing space, IBM represents a compelling opportunity as it prepares to demonstrate the "Kookaburra" processor — a 1,386-qubit multi-chip marvel that can scale to 4,158 qubits when three chips are connected via quantum communication. By abstracting complex quantum circuits into accessible functions and Qiskit patterns, IBM is making quantum computing more practical for business applications.
This Zacks Rank #2 (Buy) company is effectively removing traditional scaling limitations through modularity in both hardware and software, positioning itself well ahead of competitors. As quantum resources become woven with CPUs and GPUs into a unified compute fabric, IBM is poised to deliver unprecedented processing capabilities that will serve organizations tackling humanity's most complex challenges. The Zacks Consensus Estimate for IBM’s 2025 earnings has moved north by 1.5% to $10.77 per share in the past 30 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D-Wave Quantum stands at the forefront of commercially viable quantum computing in 2025, distinguishing itself with real-world applications across multiple sectors. The company has impressively deployed the world's largest annealing quantum computers with more than 5,000 qubits and 15-way connectivity, achieving a remarkable 99.9% system availability. D-Wave's groundbreaking agricultural application with Staque demonstrates quantum's practical superiority, optimizing autonomous farm vehicle movements in real-time — a task impossible for classical computing alone.
For investors watching the quantum space, this Zacks Rank #3 company presents a compelling opportunity as Forschungszentrum Jülich becomes the first HPC center globally to purchase their Advantage system, with plans to connect it to Europe's JUPITER exascale supercomputer. With a solid $320 million cash balance, industry-leading uptime, and demonstrated quantum advantage across multiple industries, D-Wave is delivering quantum computing benefits today while competitors remain in theoretical stages. The Zacks Consensus Estimate for QBTS’ 2025 earnings has remained steady at a loss of 38 cents per share in the past 30 days.
IONQ: A Rising Star in the Quantum Computing Landscape
Investors should keep a watchful eye on IonQ as it emerges as a formidable player in the quantum computing and networking space for 2025. The company's strategic acquisition of Qubitekk has significantly expanded its quantum networking capabilities and patent portfolio to more than 600 U.S. and international patents. IonQ's recent partnership with General Dynamics Information Technology opens lucrative opportunities in government and defense sectors, while substantial contracts with the U.S. Air Force Research Lab ($54.5 million and $21.1 million) demonstrate strong federal sector demand. This Zacks Rank #3 company is also expanding globally through its MOU with Busan Metropolitan City to advance quantum technology in South Korea.
With doubled year-over-year revenues in third-quarter 2024 and growing adoption of its IonQ Forte Enterprise and Tempo systems, IonQ is well-positioned to capitalize on quantum computing's transformative potential across defense, finance and energy sectors, making it an attractive prospect for forward-thinking investors. The Zacks Consensus Estimate for IONQ’s 2025 earnings has remained steady at a loss of $1.15 per share in the past 30 days.
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Microsoft's Majorana 1 Shakes Up the Quantum Realm: 3 Stocks to Watch
Microsoft (MSFT - Free Report) has dramatically altered the quantum computing landscape with its groundbreaking Majorana 1 processor, positioning itself as the undisputed leader in this revolutionary technology. This watershed moment represents not just a scientific achievement but a compelling investment opportunity for forward-thinking investors in 2025.
The tech giant's quantum processing unit, powered by a Topological Core, stands as the first of its kind worldwide. What truly distinguishes this innovation is its unprecedented scalability —designed to support up to one million qubits on a single chip. This architectural breakthrough effectively solves the scaling problems that have historically hampered quantum computing advancements.
Microsoft's proprietary topoconductor materials enable the creation of topological superconductivity, transitioning quantum computing from theoretical possibility to commercial reality. The Defense Advanced Research Projects Agency has recognized this potential by selecting Microsoft for the final phase of its rigorous US2QC program, signaling strong confidence from America's premier research institution.
With eight topological qubits already functioning on a chip designed for one million, Microsoft is executing a clear roadmap toward fault-tolerant quantum computing within years rather than decades. Their measurement-based approach utilizing digital precision dramatically simplifies quantum error correction — a critical advancement that makes practical quantum computing viable.
For investors, Microsoft presents a unique opportunity to gain exposure to quantum computing's transformative potential. Applications span materials science, sustainable agriculture, and chemical discovery — multi-trillion-dollar markets poised for disruption. Traditional supercomputers simply cannot match quantum systems in modeling complex molecular interactions essential to next-generation industries.
Microsoft's integrated cloud services further position it to monetize quantum computing through Azure, creating an end-to-end solution from hardware to application delivery. As quantum computing transitions from research curiosity to commercial necessity, MSFT stands ready to capture substantial market share through its first-mover advantage.
This Zacks Rank #3 (Hold) company aims to enhance its competitiveness in the tech industry by integrating highly reliable logical qubits into Azure Quantum Elements. It promises a truly hybrid computing experience, combining cloud high-performance computing with advanced AI models and improved quantum-computing capabilities. The Zacks Consensus Estimate for MSFT’s fiscal 2025 earnings has moved up by 1.2% $13.1 per share in the past 30 days.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
1-Year Performance
Image Source: Zacks Investment Research
Other Stocks Boosting Competitive Strength in Quantum Computing
Per ResearchAndMarkets report, the global quantum computing market is estimated at $1.79 billion in 2025 and is expected to witness a CAGR of 31.64% to attain $7.08 billion by 2030. This implies bright growth prospects for tech giants, including Microsoft, International Business Machines (IBM - Free Report) , D-WAVE QUANTUM (QBTS - Free Report) and IonQ (IONQ - Free Report) , among others, competing to create machines that take advantage of quantum mechanics to promise speeds far faster than conventional silicon-based computers.
IBM: Leading the Quantum Computing Revolution
IBM is positioned to transform computing in 2025 with its groundbreaking quantum-centric supercomputer initiative. The company will integrate modular processors, middleware, and quantum communication while significantly enhancing circuit performance. For investors watching the quantum computing space, IBM represents a compelling opportunity as it prepares to demonstrate the "Kookaburra" processor — a 1,386-qubit multi-chip marvel that can scale to 4,158 qubits when three chips are connected via quantum communication. By abstracting complex quantum circuits into accessible functions and Qiskit patterns, IBM is making quantum computing more practical for business applications.
This Zacks Rank #2 (Buy) company is effectively removing traditional scaling limitations through modularity in both hardware and software, positioning itself well ahead of competitors. As quantum resources become woven with CPUs and GPUs into a unified compute fabric, IBM is poised to deliver unprecedented processing capabilities that will serve organizations tackling humanity's most complex challenges. The Zacks Consensus Estimate for IBM’s 2025 earnings has moved north by 1.5% to $10.77 per share in the past 30 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
QBTS: Pioneering Commercial Quantum Computing Today
D-Wave Quantum stands at the forefront of commercially viable quantum computing in 2025, distinguishing itself with real-world applications across multiple sectors. The company has impressively deployed the world's largest annealing quantum computers with more than 5,000 qubits and 15-way connectivity, achieving a remarkable 99.9% system availability. D-Wave's groundbreaking agricultural application with Staque demonstrates quantum's practical superiority, optimizing autonomous farm vehicle movements in real-time — a task impossible for classical computing alone.
For investors watching the quantum space, this Zacks Rank #3 company presents a compelling opportunity as Forschungszentrum Jülich becomes the first HPC center globally to purchase their Advantage system, with plans to connect it to Europe's JUPITER exascale supercomputer. With a solid $320 million cash balance, industry-leading uptime, and demonstrated quantum advantage across multiple industries, D-Wave is delivering quantum computing benefits today while competitors remain in theoretical stages. The Zacks Consensus Estimate for QBTS’ 2025 earnings has remained steady at a loss of 38 cents per share in the past 30 days.
IONQ: A Rising Star in the Quantum Computing Landscape
Investors should keep a watchful eye on IonQ as it emerges as a formidable player in the quantum computing and networking space for 2025. The company's strategic acquisition of Qubitekk has significantly expanded its quantum networking capabilities and patent portfolio to more than 600 U.S. and international patents. IonQ's recent partnership with General Dynamics Information Technology opens lucrative opportunities in government and defense sectors, while substantial contracts with the U.S. Air Force Research Lab ($54.5 million and $21.1 million) demonstrate strong federal sector demand. This Zacks Rank #3 company is also expanding globally through its MOU with Busan Metropolitan City to advance quantum technology in South Korea.
With doubled year-over-year revenues in third-quarter 2024 and growing adoption of its IonQ Forte Enterprise and Tempo systems, IonQ is well-positioned to capitalize on quantum computing's transformative potential across defense, finance and energy sectors, making it an attractive prospect for forward-thinking investors. The Zacks Consensus Estimate for IONQ’s 2025 earnings has remained steady at a loss of $1.15 per share in the past 30 days.