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
-
Stocks Rally as Investors Buy the Dip: Stock Market TodayMost sectors are "go" only a day after talk of bubbles, extended valuations and narrow breadth undermined any kind of exuberance.
-
Elon Musk's $1 Trillion Pay Package Vote: What's at Stake for Tesla StockTesla shareholders are voting this week on a massive pay package for CEO Elon Musk. Here's what it means for the Mag 7 stock.
-
Stocks Rally as Investors Buy the Dip: Stock Market Today
Most sectors are "go" only a day after talk of bubbles, extended valuations and narrow breadth undermined any kind of exuberance.
-
Elon Musk's $1 Trillion Pay Package Vote: What's at Stake for Tesla Stock
Tesla shareholders are voting this week on a massive pay package for CEO Elon Musk. Here's what it means for the Mag 7 stock.
-
How to Read a Company's Balance Sheet Like a Stock ProKnowing how to read this financial statement can help you separate strong companies from struggling ones.
-
I'm a Financial Planner: This Is Why Commitment, Not Perfection, Drives Financial SuccessMeeting your goals is more likely if you stick to your strategy despite market volatility and scary headlines. Consistency makes a difference.
-
I'm a Financial Professional: This Is Why Now Is the Time for Investors to Look AbroadExtreme U.S. market concentration has made international equities not just a diversification play, but a timely opportunity.
-
Four Ways to Make the Most of Your Benefits During Open EnrollmentOpen enrollment is a chance to make sure you're getting every ounce of value from your workplace benefits and on track to reach your long-term financial goals.
-
Stocks Retreat as Bubble Worries Ramp Up: Stock Market TodayValuation concerns took hold on Wall Street today, sending Palantir and its fellow tech stocks lower.
-
The Best Mid-Cap ETFs to BuyThe best mid-cap ETFs to buy offer efficient and diversified exposure to a universe full of highly interesting companies.
