MSFT Stock: Could Microsoft Corporation Become A Trillion Dollar Company

  • Microsoft is ready to go from scalable quantum computing hardware and software research to engineering.
  • The company is assembling an all-stars team of leaders in the emerging quantum computing sector, with an eye on cloud applications.
  • According to Bill Gates, within 6-10 years cloud computing will offer super-computation by using quantum.

One year ago,  Amigobulls covered about the research arm of Microsoft (NASDAQ:MSFT), Microsoft Research, as a top-class research organization that, among other pursuits, is exploring quantum computing.

Quantum computers, which process information encoded in quantum bits - qubits - that can be in a quantum superposition of zero and one states, could process information much faster than today's computers by exploiting subtle quantum phenomena such as quantum entanglement. Here's why Microsoft stock may make a quantum jump in the long term due to its big bet on scalable quantum computers.

The theoretical peak performance of quantum computers increases very fast with the number of qubits - which justifies the interest of tech giants and funding agencies - but so does the engineering challenge of building practical, operational, high-performance quantum processors. Scalable quantum computing systems, where the number of processing qubits can be increased without running into insurmountable difficulties, are the Holy Grail of quantum computing.

Now, Microsoft is making a strong bet that it is possible to create a scalable quantum computer.

"I think we’re at an inflection point in which we are ready to go from research to engineering," said Microsoft executive Todd Holmdahl, corporate VP of Microsoft’s quantum program. Holmdahl, who previously played a key role in the development of the Xbox, Kinect and HoloLens, will lead the scientific and engineering effort to create scalable quantum hardware and software.

Also Read: Why You Should Buy Microsoft Stock Now: Microsoft Corporation (NASDAQ:MSFT)

Holmdahl noted that success is never guaranteed, but Microsoft has a clear roadmap to a scalable quantum computer. "[You] have to take some amount of risk in order to make a big impact in the world, and I think we’re at the point now that we have the opportunity to do that," he said.

Microsoft will try and build a quantum computer based on "topological qubits" with physical properties that should make them immune to environmental noise – which would otherwise degrade the delicate quantum-superposed states that make quantum data processing possible. The company believes that topological qubits could withstand heat or electrical noise, allowing them to remain in a quantum state long enough to sustain practical and effective operations. "A topological design is less impacted by changes in its environment," said Holmdahl.

Four leaders in the field of quantum computing are joining Microsoft to help the company develop a topological quantum computer, Physics World reports. Leo Kouwenhoven of the Delft University of Technology and Charles Marcus of the University of Copenhagen, already hired by the software giant, will build dedicated Microsoft quantum labs at their respective universities. Microsoft is also hiring quantum algorithms theorist Matthias Troyer of ETH Zurich, and David Reilly of the University of Sydney, who develops quantum devices based on nanostructures, the first of nanotechnology research.

"A quantum computer is much more than the qubits," Reilly said. "It includes all of the classical hardware systems, interfaces and connections to the outside world." Of course, since quantum computers that exploit unique quantum states of matter are different from conventional computers and able to run unique quantum algorithms, which require new programming concepts and environments, developing suitable quantum computing software is one of Microsoft's goals.

"Similar to classical high-performance computing, we need not just hardware but also optimized software," said Troyer.

According to many experts, analysts, and tech titans including Microsoft's own Bill Gates, quantum computing could revolutionize computing in less than a decade. "[Quantum computing] could tackle problems that would take today’s computers eons to solve in the time it takes to grab a cup of coffee," claimed Microsoft in 2015. "It could have wildest imagination-type applications in fields such as machine learning and medicine, chemistry and cryptography, materials science and engineering. It could allow humans to understand and control the very building blocks of the universe."

Also Read: MSFT Stock: Can Mobile Be A Growth Driver For Microsoft Corporation (NASDAQ:MSFT)?

In a research paper, Microsoft researchers and external scientists argued that an operational quantum computer could be achieved - presumably by Microsoft itself - in 2025. "Recent improvements in control of quantum systems make it seem feasible to finally build a quantum computer within a decade," noted the researchers.

Microsoft seems to be pivoting to a new business model based on cloud computing, and high profile government and corporate clients are signing up. Next-generation Microsoft cloud services include Artificial Intelligence (AI) applications. "[We] are building out Azure [Microsoft's cloud computing platform] as the first AI supercomputer," said Microsoft CEO Satya Nadella.

Therefore, it's not surprising that advanced cloud computing is among the applications targeted by Microsoft's push to scalable quantum computing. It makes sense, indeed, to offer powerful quantum computing algorithms for AI and Big Data in the cloud. "There is a chance that within 6-10 years cloud computing will offer super-computation by using quantum," said Microsoft co-founder Bill Gates.

Microsoft is betting on this chance, and smart investors with a long-term view should consider betting too.

Investing in tech stocks? Check out Amigobulls' top stock picks from the technology sector, which have beaten the NASDAQ by well over 100 %.

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Comments on this article and MSFT stock

user profile picture
Sure, Microsoft is going to simply jump past Rigetti, D-Wave and even IBM with quantum computing. It's going to turn Microsoft into a trillion dollar market cap company because that's so easy to do. Good for Bill Gates. 6-10 years from now is a long, long time in computing time. Who knows what will happen between now and just two years from now. I really, really hate long-term predictions about how a company will do. It's just so stupid to look that far ahead for practically anything with any sort of accuracy. It's like when the Concorde SST and the Russian equivalent were first being used. Yeah, everyone was going to be zipping across the oceans at supersonic speeds. Dozens of players were going to make it happen. Do you know how many supersonic passenger airplanes there are now? None.

Look, if Bill Gates wants to hype up Microsoft chances of becoming the richest company on the planet, that's all well and good. Just remember he also said Windows Mobile was going to be the highest-used mobile OS on the planet instead of having the current 1% market share in reality. That was just a few years back when everyone was proclaiming Windows Phone was going to upset the entire smartphone market. BS! People need to stop with such ridiculous boasting about where they're going to be in some distant future scenario.

Quantum computing? Just another fancy catch-phrase to throw around like VR and IoT becoming the next BIG thing.
2 reply
user profile picture
Hi gmgravytrain. I am also skeptic of long-term predictions, and I totally agree that it's essentially impossible to predict the evolution of technologies, companies and stocks over 6-10 years. The best we can do is to check if a tech sector or a company is moving in the right direction. It seems clear that QC will be one of the next big things (not the only one, but one of them), and Microsoft is making the right moves to be a serious contender in the race, which is what I am saying here. Don't forget that, if needed, Microsoft could buy D-Wave like you and I buy a used car.
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