Quantum computing stocks have been losing ever since Nvidia chief executive Jensen Huang said widespread applications of quantum computing are still decades away.But investors are rewarding these companies once again on Wednesday after Microsoft Corp (Nasdaq: MSFT) made a statement that starkly differs from Huang’s view on quantum computing.“We’re at the advent of the reliable quantum computing era. We’re right on the cusp of seeing quantum computers solve meaningful problems and capture new business value,” wrote Mitra Azizirad – chief operations officer of strategic missions and technologies at Microsoft – in a blog post today.On Wednesday, Microsoft also announced a new program that aims to help businesses prepare for the quantum era.
Today’s CPI data is driving investors to quantum stocks
Quantum computing stocks are gaining at writing also because the monthly core inflation data helped investors feel more comfortable in returning to the risk-on assets on Wednesday. Excluding food and energy, the core consumer price index (CPI) for December came in up a less-than-expected 0.2% for the month and 3.2% for the year.Put together with Microsoft’s forecast that research and development in quantum computing will accelerate rather significantly over the next 12 months – investor confidence in quantum stocks is ripping through the roof today.Shares of Rigetti Computing, D-Wave Quantum, and IonQ are all up more than 20% this morning.
Industry experts have differing views on quantum computing
Microsoft executive Mitra Azizirad sees now as a “critical and catalyzing time for business leaders to act” and prepare for the quantum era.Quantum computing stocks have been exceptionally volatile ever since Google announced a new quantum chip it’s calling “Willow” that offers unprecedented processing speed and advanced error correction capabilities.On the other end of that spectrum, however, are industry experts, including Jensen Huang and Mark Zuckerberg who continue to assert that real-world applications of quantum computing are still decades away.This mismatch between the views of industry experts on quantum computing has turned the likes of RGTI, QBTS, and IONQ into a Wild West in recent weeks.
Should you look past the volatility in quantum computing stocks?
Quantum computing stocks may be a risky bet at writing also because none of them are expected to turn a profit at least anytime soon.Plus, the technology itself is in its early innings only and will likely face an uphill battle ahead in terms of scalability and lowering overall costs.That’s part of the reason why famed investor Jim Cramer recently likened them to frenzied trading that surrounded gaming merchandise retailer, GameStop, in 2021. In a recent note to members of his Investing Club, the Mad Money host said GME and quantum stocks share a common thread: speculative enthusiasm that far outpaces reality.More By This Author:These 2 AI Chip Stocks Could Outperform Nvidia In 2025: Should You Invest Now?
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