NEC (NIPNF) has stopped developing physical quantum computer hardware after concluding that bringing the technology to market would take too long to generate an adequate return on investment, according to Nikkei Asia. For investors betting on quantum computing, the decision raises a broader question about how long the industry may need before advanced hardware becomes commercially viable.

NEC is not abandoning quantum technology entirely. The Japanese technology company plans to continue developing quantum annealing, quantum-inspired computing, and related services that can run on conventional computer systems.

The distinction matters. NEC is effectively shifting its focus away from building its own quantum machine and toward technologies that can be deployed without waiting for large-scale quantum hardware to mature.

On Friday, NIPNF shares rose 8%, closing at $32.85.