Microsoft's Quantum Leap Hits A Technical Snag: Death Cross Looms Large

Microsoft Corp MSFT unveiled its most ambitious tech yet—Majorana 1. This quantum chip, built on an entirely new state of matter called topoconductors, is what CEO Satya Nadella calls "an entirely new state of matter."

The chip harnesses elusive Majorana fermions, first theorized in 1937 and detected by Microsoft’s team only in 2022. Nadella claims this breakthrough could bring practical quantum computing to life in mere years, not decades.

Read Also: Microsoft’s Quantum Leap: Will Majorana 1 Lift MSFT Stock?

Quantum Hype Meets MSFT Stock’s Looming Death Cross

Chart created using Benzinga Pro

While the innovation has scientists buzzing, MSFT stock tells a different story. The stock is now flirting with a Death Cross—a bearish technical signal triggered when the 50-day moving average falls below the 200-day moving average.

MSFT stock sits at $416.13, below its 20-day SMA of $418.43 and its 50-day SMA of $427.61. The 200-day average looms at $426.36. The trend is clear: bearish.

Investor Implications: Bullish Breakthrough, Bearish Chart

While Microsoft's quantum push could reshape the tech landscape, traders are eyeing the charts, not the labs. The Death Cross often signals further downside, and with MSFT already down 0.59% year-to-date, caution seems warranted.

Unless quantum computing can bend the stock market's laws of gravity, the near-term outlook for MSFT appears more grounded than groundbreaking.

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