Shares of Google's parent company Alphabet (GOOGL) are higher Tuesday after the tech giant introduced Willow, its latest quantum chip.
The Willow chip can reduce errors as it scales and performs a computation in under five minutes, said Google Quantum AI founder and lead Hartmut Neven in a blog post. He added that the same computation would take one of the world's fastest supercomputers 10 septillion years to complete.
"The Willow chip is a major step on a journey that began over 10 years ago," Neven said. "As part of Google Research, our team has charted a long-term roadmap, and Willow moves us significantly along that path towards commercially relevant applications."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Regarding the speed of the chip's computing ability, Neven said, "This mind-boggling number exceeds known timescales in physics and vastly exceeds the age of the universe."
Over the long term, Neven believes quantum computation will advance the ability of artificial intelligence, including discovering new medicines and designing more efficient batteries for electric vehicles.
Is Alphabet stock a buy, sell or hold?
Alphabet has outperformed the broader market in 2024, up 36% for the year to date on a total return basis (price change plus dividend) vs the S&P 500's 33% gain. This is just more of the same for GOOGL, which has been a market-beating machine for the past two decades. And even with Google's looming legal issues, Wall Street is bullish on the Magnificent 7 stock.
According to S&P Global Market Intelligence, the average analyst target price for GOOGL stock is $209.85, representing implied upside of more than 14% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Argus Research has a Buy rating on GOOGL stock with a $200 price target.
"While Alphabet has often been criticized as a Johnny-one-note for its dependence on digital advertising, the rapid growth of Google Cloud has begun to diversify the company's revenue," wrote Argus analyst Joseph Bonner in an October 31 note. "Even the much maligned Waymo autonomous vehicle business has begun to expand commercial services, well ahead of competitors. Alphabet remains at a minimum competitive, if not a leader, in the development of generative AI, perhaps the new computing paradigm."
Related Content
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You WantTrue retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for RetireesThe One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
Ready to Retire? It's Not Too Late to Convert to a Roth IRAMillions of Americans are turning 65 this year. If you're retiring soon, don't dismiss the idea of a Roth conversion — it could still be a smart move even now.
-
9 Warren Buffett Quotes for Investors to Live ByWarren Buffett transformed Berkshire Hathaway from a struggling textile firm to a sprawling conglomerate and investment vehicle. Here's how he did it.
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest RatesWith potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
Simple Ways to Save on Back-to-School Shopping This YearSet a budget and stick to it, scour the house for what you already have, decorate backpacks and lunch boxes with your kids and consider buying some items during holiday sales.
-
Stocks End Strong Month on a Down Note: Stock Market TodayThere was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages – until it wasn't.
