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Microsoft Unveils Majorana 1: A Breakthrough In Quantum Computing

Microsoft has taken a major step toward practical quantum computing with the launch of Majorana 1, its first quantum computing chip, CNBC reports. The milestone follows nearly two decades of research and the creation of an entirely new state of matter.

Key Facts

  • Pioneering a new state of matter – Microsoft claims that developing Majorana 1 required engineering a topological state, a complex quantum phenomenon that enhances qubit stability.
  • Quantum architecture – The chip features eight topological qubits, built using indium arsenide (a semiconductor) and aluminum (a superconductor).
  • Precision at the atomic level – Constructing the chip required Microsoft to arrange materials atom by atom, ensuring perfect alignment for quantum operations.
  • The quantum advantage – While classical computers process data using bits (0s and 1s), quantum computers leverage qubits, which can exist in multiple states simultaneously—promising breakthroughs in solving complex problems far beyond the reach of traditional systems.
  • Competition in quantum computing – Microsoft joins a fierce race alongside Google, IBM, IonQ, and Rigetti Computing, all developing next-generation quantum processors.

Why It Matters

Quantum computing holds the potential to revolutionize fields like cryptography, materials science, and artificial intelligence. However, most quantum computing efforts rely on traditional qubit approaches due to the extreme difficulty of achieving a stable topological state. Microsoft acknowledges this challenge but believes its breakthrough could pave the way for more scalable and resilient quantum systems.

What’s Next?

Unlike its Maia 100 AI chip, which will be accessible through Azure, Microsoft does not yet plan to offer cloud access to Majorana 1. Instead, the chip represents an early step toward the company’s ultimate goal: developing a million-qubit quantum processor.

Notably, Microsoft is manufacturing Majorana 1 in-house rather than relying on external fabs like TSMC. This is feasible due to the small-scale nature of its quantum research but signals Microsoft’s intent to control its most advanced chip development processes.

With quantum computing edging closer to real-world applications, Majorana 1 marks a bold move in Microsoft’s long-term quantum strategy.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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