A mockup of a quantum computer is displayed at Seoul Science Center in Seoul, July 30, 2024. Korea Times file

Domestic quantum computer-related stocks, which had nearly halved in value, saw a dramatic rebound after Microsoft declared 2025 the "year to become quantum-ready." Industry stock prices have experienced daily roller-coaster fluctuations, with market watchers noting that quantum investments have become riskier.

According to the Korea Exchange on Friday, Korea Advanced Materials closed at 7,020 won ($4.81), a 0.99 percent increase compared to the previous session. It has been designated as a high-risk investment, having surged 113 percent from Jan. 2 to Jan. 7, only to plunge 52 percent over the following five trading days. Following Microsoft's announcement on Wednesday, it rebounded by 21 percent.

Other quantum computer-related stocks, mostly listed on the tech-heavy Kosdaq, are also experiencing significant price fluctuations. These include iWIN PLUS, COWEAVER and ICTK. After suffering maximum losses of up to 46 percent from their previous highs, these companies saw their stock prices increase by 25.3 percent, 7.4 percent and 8.6 percent, respectively, since Microsoft's announcement.

Since September 2024, when the U.S. presidential race was in full swing, U.S. stocks tied to quantum computing have experienced consistent gains.

This optimism was driven by expectations that the President-elect Donald Trump would support the industry, as well as Google's development of Willow — a quantum chip capable of solving a computing problem in five minutes that would take the classic computer more than the age of the universe.

The trend soon spread to Korea, boosting related domestic stocks.

However, the upward trend sharply reversed when Nvidia CEO Jensen Huang and Meta CEO Mark Zuckerberg publicly stated that quantum computing's commercialization would take much longer than anticipated. Their comments triggered a strong backlash from the industry.

The rebound began shortly from Tuesday (local time), after a blog post by Mitra Azizirad, president and chief operating officer of strategic missions and technologies at Microsoft. She declared 2025 as the "year to become quantum-ready" and emphasized that the pace of quantum research and development would accelerate over the next 12 months. Her announcement spurred a sharp rise in quantum-related stocks both domestically and abroad.

Despite the recent surge, the financial investment industry has advised caution when investing in related stocks. The full commercialization of quantum computing remains a highly debated topic, leading to significant volatility in stock prices.

"Quantum computer-related companies have yet to deliver consistent financial results," Kiwoom Securities analyst Kim Seung-hyuk said. "While there is strong optimism, these companies may benefit from trend-driven momentum. But stock prices could experience significant volatility until their performance is validated."

Additionally, most related domestic stocks are small-cap stocks with a market capitalization of less than 500 billion won on the Kosdaq market. Their core revenue sources are also not directly related to quantum technology.