The Archer Materials (ASX: AXE) share price has skyrocketed 32% higher today. We take a look at its latest announcement to see why.
The post Why the Archer Materials (ASX:AXE) share price is 33% higher today appeared first on The Motley Fool Australia. –
The Archer Materials Ltd (ASX: AXE) share price is on the march today after the company released an announcement pertaining to its quantum computing chip.
Following today’s 33% gain, the Archer share price has now returned over 238% in the past year. For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 4.1% over the same period.
Why is the Archer Materials share price moving higher?
This morning Archer Materials updated the market regarding the granting of its first patent for the company’s 12CQ quantum computing chip. More specifically, the patent granted is a Japanese patent (No. 6809670) for the protection of intellectual property of the 12CQ chip.
In the update, Archer noted the patent gives access to the high-value Japanese market for the 12CQ chip.
Considering the stringency of the world’s largest patent office, Archer also believes that further patent application processes will now be streamlined. These future patent applications include the jurisdictions of Australia, South Korea, Hong Kong, China, Europe, and the United States.
Quantum computing is an emerging technology, mostly restricted to research and development. Existing limitations of scale, temperature and pressure requirements have long impeded the application of quantum computing at a consumer level.
Archer aims to build quantum computing that is operational at room temperature, thereby making the technology adoptable by a wider addressable market.
CEO commentary on the update
Archer CEO Dr Mohammad Choucair commented on the news, stating:
Archer’s quantum computing chip IP is now well protected in Japan – a major global economy and centre for technological innovation. The grant of a patent in Japan further validates, and substantially derisks, our unique technology.
This update comes only a month after Archer announced it was partnering with the Brisbane based artificial intelligence (AI) firm Max Kelsen.
Archer Materials trying to knock on Google’s door
Real-world problems are being solved more and more with the application of quantum computing. Last week, it was published that Google’s quantum AI division was working alongside a pharmaceutical company to facilitate the development of new drugs.
— Engadget (@engadget) January 11, 2021
For now, most applications involve utilising quantum computing as a service. Companies that currently offer such a service include IBM, Google, Amazon, and Microsoft. However, much like the original computer, there are companies working on making this technology accessible to the everyday consumer. The question is, will we see the the consumer value unlocked in this case, as we did in the era of PC’s by Microsoft and Apple?
Following today’s rally in the Archer materials share price, the company now has a market capitalisation of around $118 million.
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