Microsoft's "quantum ready" directive propels quantum computing stocks to new heights.

• Microsoft issued a directive on Wednesday, urging businesses to become "quantum-ready" by 2025, which led to a rally in quantum computing stocks.
• The news lifted shares of Rigetti Computing, D-Wave Quantum and IonQ
• Last year, quantum stocks experienced a significant increase, but have since decreased after remarks from Nvidia's Jensen Huang and Meta Platforms' CEO Mark Zuckerberg.

On Wednesday, quantum computing stocks surged due to a directive from the government urging businesses to become "quantum-ready" by 2025 and as investors shifted back to "risk on" trades following the December core inflation reading that was weaker than anticipated.

"Microsoft's strategic missions and technologies president and COO, Mitra Azizirad, stated in a blog post that we are on the brink of the era of reliable quantum computing and that we are about to witness quantum computers solving significant problems and generating new business opportunities."

On Wednesday, Microsoft's remarks helped drive shares of more than 16% higher in premarket trading, while quantum surged 26%. Additionally, Defiance Quantum and AI ETF added nearly 10%, and the Defiance Quantum and AI ETF added nearly 3%. The rally was also fueled by NVIDIA's announcement of a "Quantum Day" at its GTC Conference in March.

Microsoft unveiled a program aimed at assisting businesses in adapting to the quantum computing era. Azizirad emphasized the importance of businesses taking action during this "critical and catalyzing time," predicting that quantum research and development will progress rapidly in the upcoming year.

Microsoft has recently joined the ranks of companies promoting interest in quantum computing, a field that uses quantum mechanics to solve complex problems at a faster rate than traditional computers. The value of quantum stocks surged last year following Google, a subsidiary of Microsoft, achieving a breakthrough with its Willow quantum computing chip.

The comments of Nvidia CEO Jensen Huang and Mark Zuckerberg this month and week, respectively, dampened the optimism about the development of useful quantum computers, leading to a decline in the shares of quantum stocks.

Although there is growing interest in the industry, some on Wall Street predict that practical applications for the technology may not emerge for several decades. Proponents argue that quantum computers can perform computational tasks that classical computers are unable to, while handling vast amounts of data.