Shares of D-Wave Quantum Inc. ( QBTS ) , Quantum Computing, Inc. ( QUBT ) and IonQ, Inc. ( IONQ ) are trading higher on Wednesday. Here’s what you need to know.

What To Know: Stocks in the quantum computing industry are moving higher after Microsoft announced the Majorana 1 chip, which it says can fit a million qubits into a chip comparable in size to a desktop PC CPU, according to The Verge. The company says it has been working on this chip, with the potential to solve large-scale problems, for 17 years.

Microsoft isn't the only one pursuing this achievement. Competitors such as Google and IBM have also been attempting to develop similar chips. However, technology companies often encounter the issue that qubits are highly sensitive and that can result in errors or data loss.

Microsoft is handling the sensitivity issue by using the Majorana particle over electrons and developing what the company called the “world’s first topoconductor.” The topoconductor can monitor and control Majorana particles, hopefully creating more stable qubits.

The company is one of two selected by the Defense Advanced Research Projects Agency (DARPA) to advance to the final round of its Underexplored Systems for Utility-Scale Quantum Computing program and develop a prototype.

"A million-qubit quantum computer isn't just a milestone — it's a gateway to solving some of the world's most difficult problems," says Chetan Nayak, a Microsoft technical fellow.

"Our path to useful quantum computing is clear. The foundational technology is proven, and we believe our architecture is scalable. Our new agreement with DARPA shows a commitment to relentless progress toward our goal: building a machine that can drive scientific discovery and solve problems that matter.”

Quantum shares may be rising after Microsoft’s announcement as it signals progress towards scalable, stable quantum computers and their commercialization.

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Price Action: At the time of writing, D-Wave shares are trading 12.2% higher at $6.76, IonQ ( IONQ ) stock is trading 1.33% higher at $34.35 and Quantum Computing ( QUBT ) shares are trading 7.09% higher at $7.90, per data from Benzinga Pro.

Image: Courtesy of IonQ, Inc. ( IONQ )