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
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
Dave Ramsey Tells Us the Biggest Retirement Mistake You Can MakeThe talk-show host, author and podcaster tells Kiplinger what people can do to ensure a happy retirement.
-
Dow Adds 516 Points on Broad Optimism: Stock Market Today
Easing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement AccountsWhile alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This TodayDon't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With MoneyConsider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
-
Six Warren Buffett Quotes Every Retiree Should Live ByThe 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
-
Budget Hacks Won't Cut It: These Five Strategies From a Financial Planner Can Help Build Significant WealthCutting out your daily latte might make you feel virtuous, but tracking pennies won't pay off. Here are some strategies that can actually build wealth.
-
To Unwrap a Budget-Friendly Holiday, Consider These Smart Moves From a Financial ProfessionalYou can avoid a 'holiday hangover' of debt by setting a realistic budget, making a detailed list, considering alternative gifts, starting to save now and more.
-
Stocks Rise to End a Volatile Week: Stock Market TodayThe market's fear index reached and retreated from a six-month intraday peak on Friday as stocks closed the week well.
