Do New Microsoft Products Make It Worth Investing in the Stock?
Written by
John Csiszar
Edited by
Zuri Anderson
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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, earlier in 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? Is the company still a good long-term investment?
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.
Quick Take: Microsoft (MSFT) Stock
This year, Microsoft’s valuation was at record levels. It’s one of the most highly valued stocks on the market today, but market cap alone doesn’t tell investors if a stock is overpriced or not. Here are some key takeaways as to how the stock is currently performing as of Sep. 2, 2025.
- Stock price: $508.66
- Market cap: $3.77 trillion
- 52-week high: $555.45
- 52-week low: $344.79
- P/E ratio: 37.14
The Discovery
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.
The Timetable
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.
The Impact
If and when Microsoft can ramp up its quantum computing chips, it could have a significant beneficial impact on the company. Microsoft already has an artificial intelligence (AI) business with an annualized revenue run rate in excess of $13 billion. 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.
Final Take To GO: Is Microsoft Stock a Buy?
The bottom line is that Microsoft is currently trading at all-time high numbers and nearly 40 times its trailing earnings. That means its growth rate has been higher than normal as the business has ultimately benefited from the AI boost from earlier in the year.
Shares are up 18% this year so far, and that has reminded everyone why it has been a traditionally safe stock to own. The stock price is more expensive these days, but it still has many investors bullish on its long-term future.
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 could push shares even higher.
Caitlyn Moorhead contributed to the reporting for this article.
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