Feb 20 - Quantum computing stocks rose in premarket

trading on Thursday after Microsoft ( MSFT ) launched a new chip that

indicated the technology is not "decades away" as stated by the

top boss of AI chip bellwether Nvidia ( NVDA ).

Microsoft ( MSFT ) unveiled its Majorana 1 chip on Wednesday and said

it is less prone to errors than rivals, while providing evidence

in a scientific paper set to be published in academic journal

Nature.

Quantum computing holds the promise of carrying out

calculations that would take today's systems millions of years.

If successful the technology could also potentially disrupt

today's cybersecurity systems.

Shares of IonQ ( IONQ ) gained 4.6%, Rigetti Computing ( RGTI )

9.4% and D-Wave Quantum ( QBTS ) 8.7%, while those of

smaller peers Quantum Corp ( QMCO ) added 4.8% and Quantum

Computing ( QUBT ) 8.8%.

Shares of Microsoft ( MSFT ) edged up 0.3%, while Nvidia ( NVDA )

inched up 0.2%.

When quantum computers will arrive has become a topic of

debate in the upper echelons of the tech industry. Microsoft ( MSFT )

along with Alphabet and IBM ( IBM ) are in a growing

camp of companies that believe the technology's practical use is

nearer than previously imagined.

Quantum computing stocks took a hit in early January when

Nvidia ( NVDA ) CEO Jensen Huang said the technology was two decades away

from overtaking his company's chips, which are the workhorses of

artificial intelligence.

The stocks logged monthly losses in January, ending a

year-long rally that saw them outperform the tech-focused Nasdaq

, as well as Nvidia ( NVDA ) and Microsoft ( MSFT ).

They have lost between 18% and 70% so far this year,

compared with last year when they had risen at least

three-fold.

(Reporting by Johann M Cherian in Bengaluru; Editing by Arun

Koyyur)