Microsoft recently announced its Majorana 1 quantum chip, a significant improvement in quantum computing technology. However, the company’s share price has slipped since the announcement. Despite this, one investor believes that Microsoft’s foray into quantum computing is a groundbreaking breakthrough.
Weebler Finance, an investor with a track record of successful stock picks, thinks that Majorana 1 marks a major step forward in practical quantum computing. Like OpenAI, which only gained attention after releasing ChatGPT, Weebler expects quantum computing to follow a similar trajectory, sparking new optimism among investors.
However, the investor also acknowledges the technical and regulatory hurdles that need to be addressed before real-world applications become practical. Despite this, Weebler is confident in Microsoft’s long-term prospects and praises the company’s attractive EV/EBITDA ratio of 21.6x.
According to Wall Street analysts, Microsoft is on the right path with a Strong Buy consensus rating. With 29 Buy and 3 Hold ratings, MSFT boasts an average price target of $510.38, suggesting gains approaching 30%. While investors may have differing opinions on the potential benefits of Majorana 1, most agree that Microsoft is well-positioned for long-term success.
Source: https://www.tipranks.com/news/explosive-surge-on-the-horizon-says-investor-about-microsoft-stock