Microsoft CEO Satya Nadella recently said that quantum computing will be the next major accelerator for cloud computing. His remarks during the company’s late July 2025 earnings call sparked major gains in quantum computing stocks like IonQ, Rigetti, D‑Wave, and Quantum Computing Inc. (cloudcomputing-news.net, Investors.com).
📈 Stock Market Reaction
After Nadella’s quote on July 31, 2025, quantum-related stocks surged:
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IonQ rose about 4%
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Rigetti Computing climbed 9.5%
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D‑Wave Quantum gained roughly 6.1%
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Quantum Computing Inc. added 5.5%
Meanwhile, Microsoft shares also jumped 4.4% on strong Azure growth and optimistic guidance (Investors.com, Investors.com).
Rosenblatt Securities also initiated buy ratings on IonQ and D‑Wave, with targets near $70 and $30 respectively—citing D‑Wave’s leading position in quantum annealing and AI integration (Investors.com).
🧪 What Is Azure Quantum and Majorana 1 Chip?
Microsoft continues to lead in quantum innovation through its Azure Quantum platform, bridging AI, cloud HPC, and quantum hardware in partnership with IonQ, Atom Computing, Quantinuum, and more .
In February 2025, Microsoft unveiled Majorana 1—the first Quantum Processing Unit built with a breakthrough material class called topoconductor. This architecture uses topological superconductivity via indium arsenide and aluminum to create qubits that are more error-resistant and scalable to designs with millions of qubits on a single chip .
🔧 Advancing Error Correction and Scale
Microsoft also announced novel 4D geometric error‑correction codes, which reduce error rates by over 1,000‑fold, enabling more logical qubits with fewer physical ones. This is crucial for practical, fault‑tolerant quantum computing .
Partnering with Atom Computing, Microsoft is testing neutral‑atom qubits with high fidelity and mid‑circuit measurements—demonstrating 24 logical qubits in reliable computation and paving the way for future expansion .
🔮 Why Microsoft Says “Quantum Is the Next Big Accelerator”
Nadella emphasized that quantum will supercharge cloud-based AI and scientific computing—handling tasks beyond current supercomputers. With Azure Quantum combining compute, error-correction, AI, and software, Microsoft is betting on hybrid systems to drive global innovation in medicine, chemistry, materials, and logistics .
He also reaffirmed Microsoft’s strategic roadmap to deliver a fault-tolerant quantum prototype within years—not decades—through DARPA collaborations—including a scalable design built around topological qubits and digital control architecture .
🌍 Broader Global Momentum
This quantum optimism coincides with broader growth:
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The UN declared 2025 the International Year of Quantum Science and Technology. Microsoft is a lead business partner in the initiative's Quantum Ready program, helping businesses prepare for quantum-enhanced applications and preparing for quantum-safe cryptography .
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In Denmark, Microsoft is supplying software for the world's most powerful planned quantum computer (Project QuNorth) built with Atom Computing—to operate with 50 logical qubits initially, scaling further by year-end 2026 .
🧒 Easy Summary (Class 3 Level)
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Microsoft’s CEO said quantum computing will be the next big boost for cloud tech.
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Stocks for IonQ, D‑Wave, Rigetti rose right after.
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Microsoft showed its new Majorana 1 chip using special materials called topoconductors.
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It also introduced smart error correction to make quantum computers more reliable.
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Microsoft is working with Atom Computing and others to build real quantum computers soon.
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The world declared 2025 a global year for quantum science—Microsoft is a key partner.
🔗 Helpful Outbound Links
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📰 Full stock reaction and Nadella quote: [Quantum Computing Stocks Rally article]
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🧠 Majorana 1 chip details and materials breakthrough: [Microsoft unveils Majorana 1 major announcement]
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💻 Azure Quantum platform and Quantum Ready initiative: [Microsoft Azure blogs]