Oops, something went wrong Microsoft has been at the forefront of computing technology since its founding in 1975. Back then, even its visionary founders, Bill Gates and Paul Allen, could not have conceived that 50 years later the company would be creating new states of matter while producing a quantum computing chip. Yet, in February 2025, that’s exactly what Microsoft announced to the world. So, what exactly is a quantum computing chip, and more to the point, is it the type of technology that could move Microsoft’s stock higher? Trending Now: I’m a Self-Made Millionaire — 5 Stocks You Shouldn’t Sell Find Out: 6 Hybrid Vehicles To Stay Away From in Retirement Here’s a look at the company’s recent development and whether or not it might be a good time to pick up shares of Microsoft. On Feb. 19, 2025, Microsoft announced that it had created its first quantum computing chip, dubbed the Majorana 1. The company said that the chip was the culmination of 20 years of research and development, and that it required creating an entirely new state of matter. Quantum computers are likely to be revolutionary because unlike traditional computers, which rely on bits that can only be off or on, quantum computers use quantum bits — also known as qubits — which can be both off and on simultaneously. While the concept of qubits and matter existing in two states at once can get a bit heady, the upshot is that quantum computers are expected to be able to process data that would take traditional computers an extraordinary amount of time, if they were able to process it at all. This could lead to breakthroughs in any number of scientific, medical and other fields. Consider This: I’m a Financial Advisor — 4 Investing Rules My Millionaire Clients Never Break While an exciting concept, Microsoft said that Majorana 1 itself will not be available for customers using the company’s cloud product, Azure. Rather, the chip is merely a step along the path towards a goal of fitting one million qubits on a chip. As Jason Zander, a Microsoft executive vice president, told CNBC: “We want to get to a few hundred qubits before we start talking about commercial reliability.” This means that true availability of Microsoft’s quantum computing chips could still be years, if not decades, away. If and when Microsoft is able to ramp up its quantum computing chips, it could have a significant beneficial impact on the company. Microsoft already has an AI business with an annualized revenue run rate in excess of $13 billion, according to CNBC. Quantum computers could help build AI models that could greatly increase this revenue figure. Beyond that, a successful quantum computing chip could facilitate growth and innovation in any number of outside industries. For now, Microsoft’s announcement of the Majorana 1 chip is nothing more than an exciting glimpse into a potentially world-changing future. While a long-term investment in Microsoft could reap the rewards of future quantum computing developments, in and of itself it’s not likely to move the stock any time soon. However, there are plenty of other reasons to invest in Microsoft for those who can handle the inherent risk in purchasing tech stocks. For starters, as of Mar. 28, 2025, the stock has sold off about 15% from its Jan. 28 high, offering a potentially attractive entry point for long-term investors. According to Yahoo! Finance, 53 of 57 analysts following the stock have “strong buy” or “buy” ratings on the company, with an average price target about 34% above current levels. These factors in and of themselves could make Microsoft a good long-term buy at current levels. If the quantum computing division of the company should happen to hit paydirt over the coming years as well, that will just be another tailwind that could push shares even higher. More From GOBankingRates Trump Tells Sean Hannity Why He Took Away One of America's Favorite Tax Cuts The New Retirement Problem Boomers Are Facing Salary Needed To Achieve the American Dream in the 50 Largest Cities 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on GOBankingRates.com: Here’s What Microsoft’s Newest Product Could Do for Its Stock (Is It Time To Invest?) Sign in to access your portfolio