{"id":67073,"date":"2025-08-08T07:16:09","date_gmt":"2025-08-08T07:16:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/67073\/"},"modified":"2025-08-08T07:16:09","modified_gmt":"2025-08-08T07:16:09","slug":"microsoft-ceo-sends-a-surprising-message-on-quantum-computing","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/67073\/","title":{"rendered":"Microsoft CEO sends a surprising message on quantum computing"},"content":{"rendered":"\n

Microsoft CEO sends a surprising message on quantum computing<\/a> originally appeared on TheStreet<\/a>.<\/p>\n

We\u2019re used to Big Tech and Microsoft\u00a0 (MSFT<\/a>) being deep in AI.<\/p>\n

But now, Microsoft just made quantum feel a whole lot less sci-fi. CEO Satya Nadella isn\u2019t pitching a pipe dream, and if you thought you\u2019d have to wait decades, think again.<\/p>\n

On Microsoft\u2019s latest earnings call, Nadella hailed quantum as \u201cthe next big accelerator in the cloud,\u201d and unlike most tech hype cycles, he came with receipts.<\/p>\n

\ud83d\udcb5\ud83d\udcb0Don’t miss the move: Subscribe to TheStreet’s free daily newsletter<\/a>\ud83d\udcb0\ud83d\udcb5<\/p>\n

What we see now is bigger than a quarter; it\u2019s a total reshaping of a cloud strategy, which could completely upend the AI race.<\/p>\n

\"\u201cThe \u201cThe next big accelerator in the cloud will be Quantum,\u201d says Microsoft CEO Satya Nadella.Image source&colon; Bloomberg&sol;Getty Images <\/p>\n

Microsoft\u2019s fourth-quarter FY2025 results once again blew past expectations, while underscoring the depth of its cloud-AI momentum.<\/p>\n

Revenue hit a superb $76.44 billion<\/a> with earnings per share at $3.65, comfortably topping Wall Street forecasts.<\/p>\n

Related: IonQ CEO drops bold call on quantum computing\u2019s tipping point<\/a><\/p>\n

However, it was Azure\u2019s 39% year-over-year growth that stole the show again, supercharged by surging AI workloads and sticky enterprise demand.<\/p>\n

Investors focused on supply and not demand as the key limiter. Microsoft flagged a coming $30 billion capex surge in expanding data center capacity, responding to the AI-driven pressure on compute availability.<\/p>\n

That massive bet is already paying dividends.<\/p>\n

Microsoft Cloud\u2019s mix continues to show off sticky migration trends, growing inference activity, and healthy adoption of AI tools like Copilot.<\/p>\n

The software, infrastructure, and services flywheel is spinning faster each quarter.<\/p>\n

Analysts took note.<\/p>\n

KeyBanc upgraded the stock to Overweight, slapping a $630 price target, citing Microsoft\u2019s robust ability to maintain double-digit top and bottom-line growth.<\/p>\n

Mizuho and Melius Research chimed in, too, hailing MSFT stock a \u201cmust-own\u201d as it inches closer to a $4 trillion market cap.<\/p>\n

That said, over the past year, Microsoft stock has killed it, posting a 27% bump year-to-date, compared to just a 7.8% jump in S&P 500 returns.<\/p>\n

Near-term momentum has also been impressive, with Microsoft boasting a 24% return, dwarfing broader-market gains.<\/p>\n

Consequently, it’s now trading at remarkably lofty pricing multiples, at over 34 times non-GAAP earnings, roughly 8% higher than its five-year average.<\/p>\n

Similarly, it’s trading at 12x forward sales, approximately 10% higher than its five-year average.<\/p>\n

Microsoft’s quarterly call wasn\u2019t simply about earnings, but signaled a major paradigm shift.<\/p>\n

Story Continues <\/p>\n

CEO Nadella used the July 30 earnings call to spotlight quantum as a now-now story.<\/p>\n

“The next big accelerator in the cloud will be Quantum, and I\u2019m excited about our progress,” he said.<\/p>\n

That progress is far from being hypothetical.<\/p>\n

Nadella grounded the claim with real-world momentum: “In fact, earlier this month, we announced the world\u2019s first operational deployment of a Level 2 Quantum computer in partnership with Atom Computing.”<\/p>\n

Related: Morgan Stanley slaps eye-popping price target on Nvidia stock<\/a><\/p>\n

That July 2025 milestone effectively turned Microsoft\u2019s quantum initiatives from a lab curiosity into a public inflection point.<\/p>\n

He further said, “This is how we will continue to think and make investments, with decade-long arcs, while making progress every quarter.\u201d<\/p>\n

Microsoft is building Magne, a robust neutral-atom quantum system with Atom Computing. Construction begins in fall 2025, with early workloads targeted for 2027.<\/p>\n

The effort blends Azure’s cloud exploits with Atom’s hardware, which is part of a bigger bet on fault-tolerant systems.<\/p>\n

Across Big Tech, quantum is heating up just like the AI arms race.<\/p>\n

Google and IBM are backing superconducting paths, and though Microsoft is chasing a different lane, the goals are converging.<\/p>\n

More News:<\/p>\n

Nadella bets that Microsoft\u2019s momentum in AI and cloud can effectively compound into quantum, and that bet just got a major signal boost.<\/p>\n

The quantum computing industry has been building a healthy head of steam of late.<\/p>\n

In June, Nvidia CEO Jensen Huang put it bluntly: \u201cThere\u2019s an inflection point happening in quantum computing,\u201d suggesting that hybrid quantum-classical systems could potentially offer real-world utility soon.<\/p>\n

Billionaire tech magnate Bill Gates is even more bullish, predicting usable breakthroughs within three to five years.<\/p>\n

On top of that, the economics are catching up to the breakthrough technology as well.<\/p>\n

McKinsey\u2019s 2025 Quantum Technology Monitor pegs the quantum ecosystem\u2019s potential at a whopping $100 billion by 2035.<\/p>\n

Similarly, Fortune Business Insights projects it could jump over $1 billion in 2024 to $12.6 billion by 2032<\/a>, clocking a powerful compound annual growth rate of close to 35%.<\/p>\n

Investors aren\u2019t waiting for perfect conditions.<\/p>\n

Cathie Wood\u2019s ARK Invest is leaning into the space with its thesis: \u201cThe only way to predict the future is to invent it.\u201d<\/p>\n

Put simply, the framing around quantum is shifting at a breakneck pace.<\/p>\n

Related: Veteran analyst drops bold price target on Palantir stock ahead of earnings<\/a><\/p>\n

Microsoft CEO sends a surprising message on quantum computing<\/a> first appeared on TheStreet on Aug 2, 2025<\/p>\n

This story was originally reported by TheStreet<\/a> on Aug 2, 2025, where it first appeared.<\/p>\n","protected":false},"excerpt":{"rendered":"Microsoft CEO sends a surprising message on quantum computing originally appeared on TheStreet. We\u2019re used to Big Tech…\n","protected":false},"author":2,"featured_media":67074,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[1281,199,6279,49024,79],"class_list":{"0":"post-67073","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-physics","8":"tag-microsoft","9":"tag-physics","10":"tag-quantum","11":"tag-satya-nadella","12":"tag-science"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/67073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=67073"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/67073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/67074"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=67073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=67073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=67073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}