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Microsoft (MSFT +2%) takes a leap higher today after announcing its new Quantum Ready program, marking another step further into the quantum computing field. The news has had a ripple effect on numerous quantum computing stocks, such as QBTS and IONQ, sending them soaring after a recent gap-down last week following comments from AI chip leader NVIDIA's (NVDA) CEO, who suggested that useful quantum computers are at a minimum 15 years away.

What is quantum computing? The term is used to describe how a computer processes data, using qubits instead of bits. While bits can hold only one combination of on and off, qubits can have multiple combinations, allowing quantum processors to sift through vast data sets in a way that traditional processors cannot.

However, there are many hurdles to clear before quantum computing can reach the mainstream. For instance, because qubits can be both on and off simultaneously, they are susceptible to interference, leading to errors and unusable results. To reduce the error rate, companies like Google (GOOG), which sparked a quantum computing frenzy in early December with its Willow chip, up the number of qubits used. However, these chips, including Google's, remain proof of concept, an underlying factor in NVDA's CEO tapping the brakes on quantum computing.

Nevertheless, MSFT's announcement today could signal a shifting landscape where AI may be beginning to take a backseat in quantum computing.

• The Quantum Ready program aims to assist companies, investment funds, and governments in their multi-billion dollar quantum computing investments. Currently, many of these entities are planning a quantum-ready strategy but may be encountering challenges in assessing risk and return, as well as creating a roadmap surrounding quantum computing. As such, the Quantum Ready program provides organizations with the tools needed to address these hurdles.
• Throughout 2024, MSFT announced a string of developments surrounding Azure Quantum, its quantum-focused cloud-based platform. In April, MSFT announced it was entering the next phase for solving problems with reliable quantum computers through logical qubits, which combine multiple physical qubits and touted a better error rate than physical qubits. In September, MSFT noted that these logical qubits demonstrated noticeable improvements.
• By reaching organizations early with its Quantum Ready program, MSFT is looking to be the tech company businesses turn to when trying to implement what could be the next significant technological breakthrough. This strategy could be MSFT's next leg of growth over the long term if the challenges associated with quantum computing are resolved.

Over the next year, MSFT expects the pace of quantum R&D to accelerate. However, the company did not add when retail or commercial applications would be available. Instead, 2025 is shaping up to likely revolve around quantum computing R&D. As such, quantum names could continue to see considerable volatility as news over potential breakthroughs or possible setbacks pour in.