Here’s why the Archer Materials (ASX:AXE) share price is up 5% today

Shares in Archer Materials Ltd (ASX: AXE) are rising after today. This comes after the company updated the market on…

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Shares in Archer Materials Ltd (ASX: AXE) are rising after today. This comes after the company updated the market on its 12CQ quantum computing processor chip’s development. At the time of writing, the Archer share price is 5.26% higher than yesterday’s close. Shares in the tech company are currently swapping hands for 80 cents.

According to Archer, the 12CQ chip is a first-of-its-kind quantum bit processor technology.

A quantum bit is a single unit of quantum information. Quantum computing is a method of computing focused on the principles of quantum theory. Furthermore, it aims to explain the behaviour of matter and energy.

Archer hopes its 12CQ chip will enable quantum computing devices to be used in mobile and data-centric applications.

Let’s take a closer look at the news driving the Archer Materials share price today.

Quantum computing algorithms

Archer is working with Australian artificial intelligence (AI) and quantum computing business, Max Kelsen. The purpose of the partnership is to create algorithms to run the 12CQ chip in the AI technology field. Therefore, the development of algorithms is needed to link the chip to the applications a customer would use it for.

Archer and Max Kelsen are working towards what Archer calls a “unique class” of quantum algorithms. These quantum algorithms will be used in the training of quantum neural networks.

According to Archer, quantum neural networks are essential to AI technology and have the potential to allow quantum computers to outperform modern computers in some tasks.

The company also states that its early results show significant improvements in algorithmic performance can be achieved.

Archer and Max Kelsen are still continuing to build the algorithm. They aim to make it publicly available on Qiskit – an open-source quantum computing platform – later this year.

Commentary from management

Archer’s CEO Dr Mohammad Choucair commented on the news, saying:

There are parallels between the business growth strategies of quantum computing companies today and the computing companies of the 1980s that have since come to dominate global tech.

Hardware and software firms working together at an early stage of technology development is a well-known recipe for success in the computing industry.

At Archer, we are working with global leaders in computing and AIto develop and integrate the software required to enable the operation of our 12CQ chip and its proposed high impact enduse applications.

Archer Materials share price snapshot

The Archer Materials share price is having a brilliant year on the ASX so far.

It’s currently 53% higher than it was at the start of 2021. It’s also gained 11% since this time last year.

The company has a market capitalisation of around $171 million, with approximately 226 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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